Prakash Raj Summoned by ED in Alleged Ponzi Scheme Involving Pranav Jewellers

VoM News Desk | November 23, 2023 | 09:10 PM IST | Crime | Follow on Google News

Prakash Raj Summoned by ED in Alleged Ponzi Scheme Involving Pranav Jewellers

Prakash Raj Summoned by ED in Alleged Ponzi Scheme Involving Pranav Jewellers

Actor Prakash Raj has been summoned for questioning by the Enforcement Directorate (ED) concerning his association as a brand ambassador with Pranav Jewellers. The jewelry chain is accused of orchestrating a ₹100-crore Ponzi scheme.

Key Points of the Case

• Alleged Ponzi Scheme: Pranav Jewellers, with branches in Tamil Nadu and Puducherry, is accused of duping investors through a gold investment scheme.
• ED’s Action: The ED conducted raids on the chain’s branches and issued a statement highlighting the fraudulent nature of the scheme.
• Actor’s Involvement: Prakash Raj, who has not yet issued a statement, was the brand ambassador of the jewelry chain during the period in question.
• Closure and Legal Actions: The stores shut down in October, leading to a case being filed by the Economic Offences Wing in Tamil Nadu’s Trichy against the owner, Madhan.

ED’s Findings and Allegations

• False Promises: Investors were lured with promises of high returns, which never materialized. The invested amounts were not returned.
• Misuse of Funds: The ED alleges that Pranav Jewellers cheated the public by diverting funds to shell entities and entry providers, masking them as purchases of bullion/gold ornaments.
• Confessions from Suppliers: During the investigation, supplier parties acknowledged providing bogus entries and cash to the accused in exchange for bank payments.

Implications for Prakash Raj

The summons to Prakash Raj underscores the seriousness of the allegations and the investigation’s scope. As the brand ambassador, his association with the jeweler is being scrutinized, although his direct involvement in the alleged scam is not indicated at this stage.

This case highlights the risks and responsibilities associated with celebrity endorsements, especially in the context of financial schemes.

L

VoM News Desk

VoM News is an online web portal in jammu Kashmir offers regional, National & global news.