Over 3,000 people allegedly cheated in multi-crore investment fraud in Salem

More than 3,000 people are suspected to have been cheated in a multi-crore investment fraud in Salem, with the Economic Offences Wing (EOW) police arresting one of the accused and searching for four others, including a couple.

The arrested was identified as Shenpagapandian, 45, of Madurai. Police said he was the director of Profitable Ever Online Traders, which was started at Alagapuram in Salem in 2014. Vijayaraghavan was its manager.

According to the police, the company attracted investors by promising high returns through a share market-linked investment scheme. It allegedly offered interest of up to 51% and assured investors of additional payments at maturity. The company conducted meetings at various places to attract investors and collected money from the public. Several investors later complained that the company had stopped paying the promised returns and failed to return their investments.