What's the role of Ukrainian actor in Mumbai’s $115.5M Ponzi scam?

In a shocking financial scandal, a Ukrainian actor has been arrested in connection with a Ponzi scheme that duped hundreds of investors in India’s financial capital, Mumbai.

The scam, orchestrated under the banner of Torres Jewellery—which operated multiple stores across Mumba that vanished overnight after amassing millions of dollars from investors—left small traders, vegetable sellers, and middle-class families in financial ruin.

According to police estimates, investors lost up to 10 billion Indian rupees (about $115.5 million).

With the Mumbai Police intensifying their crackdown, the case has unravelled into an international investigation involving Ukrainian nationals as alleged masterminds behind the fraud.

The Economic Offences Wing (EOW) of Mumbai Police announced on Tuesday the arrest of Ukrainian actor Armen Ataine in connection with the scam. Officials stated that he is accused of assisting the alleged Ukrainian masterminds behind the scheme.

The elaborate Ponzi trap

Torres Jewellery opened its doors in Mumbai in February 2023, establishing six outlets across the city. It lured investors by selling gemstone jewellery coupled with an enticing bonus scheme.

Investors were promised lucrative returns on their investments, with interest rates initially set at six percent per week and later increased to 11 percent.

As is common with Ponzi schemes, the initial payouts were made, further instilling confidence among investors. However, the returns stopped abruptly two months ago, raising alarm bells.

The scheme’s final act of deception came earlier this month when Torres uploaded a video on YouTube, urging people to invest before January 5 to secure an 11 percent return.

The next day, January 6, all stores were shut, leaving hundreds of investors stranded and penniless.

The key players

Among those arrested is Ukrainian actor Armen Ataine, who allegedly played a crucial role in assisting the scam’s masterminds—two other Ukrainian nationals, Artem and Olena Stoin.

The EOW said it has intensified efforts to track the duo, who are suspected to be the architects of the fraudulent investment scheme.

While authorities have apprehended six individuals so far, the wider network of accomplices remains under investigation. Reports suggest that the fraudulent operation was executed with meticulous precision, involving professional actors and financial analysts to build credibility and trust.

Devastating blow to the Middle Class

The scam predominantly targeted lower-middle-class individuals, many of whom invested their life savings in the hope of earning substantial returns.

Some investors pooled money from relatives and friends, only to find themselves defrauded. Seven victims who filed the initial police complaint reported a collective loss of over 130 million Indian rupees ($1.5 million).

Many victims have questioned the government’s role in allowing such schemes to flourish under its watch.

“If the company had tax and other registration number, how were we to know it is a fraud? How was it able to operate freely?” one investor lamented.

Another victim stated, “We don’t want interest anymore. We just want our money back.”

Twist in the tale: Torres’ counterclaim

In a bizarre twist, Torres Jewellery uploaded another video post-collapse, claiming its CEO, Tausif Reyaz, and Chief Analyst, Abhishek Gupta, had orchestrated a coup within the company and looted its stores.

The video, showing alleged employees vandalising showrooms, attempted to shift blame for the missing funds onto internal betrayal rather than fraudulent operations.

However, police remain sceptical and are investigating these claims as a possible diversion tactic by the accused masterminds.

Implications beyond India

The case has taken on international dimensions, with Indian authorities seeking cooperation from Ukrainian law enforcement to track the masterminds.

Experts warn that the Torres Jewellery scam is a stark reminder of how Ponzi schemes are evolving globally, exploiting financial loopholes across jurisdictions.

This case is not just a domestic financial fraud—it underscores the growing threat of transnational financial crimes that require global collaboration to combat.