In yet another development in the QNet scam, Republic Media Network has accessed the Serious Fraud Investigation Office (SFIO) secret report that was sent back in 2012 to the then Finance Department warning about the scam. The secret SFIO report dated March 2012 asked for stronger legislation against QNet and called it a potential threat to national security. The scathing SFIO report mentioned that such schemes were a threat to national security. "Their business, operations, and conduct are totally unfair and prejudicial to public interest. They are also a potential threat to national security as this scheme as well as all such type of illegal schemes are being run by overseas operators."
This SFIO Report from 2012 says “deception is the key to propagate pyramid schemes” . About the pyramidal structure and modus operandi of the scheme, the report said: "The promoters keep on running the illegal business of pyramidal scheme in clear violation of the Prize act." The SFIO report talks about how the most vulnerable were preyed on by such ponzi schemes and says “pyramid schemes are most virulent, extremely viral and predatory schemes which are rapidly expanding and deluding the most vulnerable among the society.”
On Wednesday, in a massive development in what is being called as one of the biggest ponzi scams - the QNet scam, Cyberabad Commissioner of Police said that the scope of the scam could be as big as of Rs 5000 crores. On Tuesday, Cyberabad Police in a press conference said that they are winding up the companies related to QNet and while the process of investigation will continue, note has been taken by the Ministry of Corporate Affairs, Government of India.
VC Sajjanar, the Commisioner of Police of Cyberabad, told Republic TV that the company has been duping in 'three avatars'. "It dupes people by giving motivational speech, and to camouflage its illegal activities, it sells few products." Informing more about the findings of the case, he said: "During the investigation, many big names were sent notices - like Anil Kapoor, Shahrukh Khan, Boman Irani. The Govt of India is in the process of winding up the company." About the mastermind of the scam- Vijay Eshwaran and Joseph Bismark, the Police Commissioner said that they are outside India and Police is trying to track his movements.
The QNet scam is a case of cheating by a company named Vihaan Direct Selling Pvt. Ltd. Company. The case was cracked down by the sleuths of Cyberabad Police in various parts of Telangana, Andhra Pradesh, Bengaluru and Delhi. Vihaan Direct Selling Pvt. Ltd. formerly known as Gold Quest, Quest Net, is a Hong Kong-based Direct Selling /Multi-level marketing (MLM) company owned by the QI Group. Gold Quest was established in the year 2001 and was registered with ROC Chennai.
The methodology of selling was so-called 'direct selling through personal approach and based on referral system'. But in fact it was running money circulation scheme in the guise of selling products. The company faced complaints from 172 persons in Chennai and more from all over the country. When the litigation and criminal cases were going on, the promoters of this scheme shifted completely to a newly formed private company called Quest Net.
After facing several complaints all over the county including Telangana, a new company called QNet was formed. The company runs many Ponzi schemes and Binary Schemes. It mainly showcases itself as dealing with Products such as Vacation Packages, famous club memberships, etc. as business tactics, but in the guise of selling products they enroll members and commissions will be paid to the members. QNet, the main subsidiary of the QI Group of Companies was founded by Vijay Eshwaran and Joseph Bismark in Hongkong. Trevor Kuna (joined Q Net in 2008) who was Chief Marketing Officer was appointed as CEO of Q Net. Michael Ferreira and Malcolm Desai are the shareholders of Vihaan Direct Selling Pvt. Ltd. Further QNet has appointed Vihaan Direct Selling Pvt. Ltd. as its franchisee. Dilipraj Pokkella and Md.Imthiyaaz were made directors of this franchise.