Kozhikode: Kozhikode crime branch, probing the money-chain fraud of Chennai-based RMP Network Marketing, has arrested the key accused, Shamsudheen from Thiruvananthapuram, Wednesday.
RMP, a money-chain organisation, was blacklisted following complaints lodged by a number of investors.
Although the firm is headquartered in Chennai, most of the investors were from Kerala. The firm used to collect money-offering products at eye-catching prices. Almost all of the investors were housewives. The agents, who recruited investors, were offered commission, luxury cars and foreign trips. The firm had offices in Thrissur, Ernakulam, Kozhikode and Thiruvananthapuram.
Shamsudheen is also accused in the fraud case related to Monavie, a US-based network marketing company which also functioned like a money- chain firm by selling an energy drink worth Rs 2,500 per bottle.
In Monavie, to become a member of the company one had to pay Rs 4500. A member would get a bottle of energy drink worth Rs 2500. When he adds each additional member in the network he would get a commission of Rs 600.
However, the functioning of the company became suspicious following complaints from its members who alleged that they were not paid the promised commission.