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PHey Reddit,
I’m sharing this on behalf of a group of people (including myself) who have gotten trapped in a serious financial fraud situation. It involves a well-known local shop owner who we used to interact with regularly over chai, cigarettes, and small talk. He was friendly, approachable, and seemed financially stable. No one expected something like this from him.
Here’s the full story:
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How It Started:
He casually introduced us to a short-term investment plan: give him money and get 10% return in 10 days.
Initially, people invested small amounts—just 10K–20K. The returns came on time.
As word spread and trust grew, more people joined, and the amounts started increasing.
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How It Escalated:
Our core group of 3–4 people started working together on these deals. In total, around 15–20 people were involved across the community.
We began investing larger sums, going up to multiple lakhs per person.
He encouraged us to use credit cards, which we’d rotate through PoS machines under his control (from his shop). This let us cycle large amounts.
Some payments were made via bank transfers, and a large part was in cash.
He continued paying returns like clockwork. At the peak, he was offering 40–50% in 10 days—and still fulfilling it.
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The Collapse:
After one last round of successful payouts, he collected even more money from all of us.
But this time, instead of returning the funds, he kept delaying payments without clear explanations.
On the final promised payout day, when many of us showed up at his shop, he was gone—phone switched off, house locked.
We then started reaching out to others and realized everyone was individually involved, with no awareness of the broader picture. Some people are owed 40–90 lakhs individually. Our group alone is owed over 50 lakhs (including expected returns).
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Suicide Attempts and Fallout:
We immediately went to the local police station and filed a complaint about fraud and cheating.
That same night, we were informed that he had attempted suicide by drinking phenol but was saved by a family friend.
He gave a statement to police, claiming it was a “family matter”.
The next day, he tried to hang himself and was rescued again. This time, he left behind a written suicide note, which reportedly includes the names of all investors and the amounts owed.
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Current Situation:
He is alive, and back at home under the watch of his family.
His family claims no knowledge of the financial dealings.
We have WhatsApp conversations, voice recordings, screenshots, and transaction proof (PoS receipts, credit card bills, UPI records).
He has acknowledged these dealings multiple times in messages and voice notes.
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Our Questions / Help Needed:
1. Can we still pursue legal recovery now that he’s alive but has attempted suicide multiple times?
2. Does the suicide note (with names/amounts) carry any weight legally for recovery or proving fraud?
3. Are we in any legal risk for using PoS systems or rotating money via credit cards? Could this be seen as complicit behavior?
4. What is the legal responsibility of his family? Can recovery action extend to his shop, assets, or estate?
5. Should we escalate this to the Economic Offences Wing (EOW)? Or should this be treated as cyber/financial fraud?
6. Can he still be charged with criminal breach of trust, cheating, or under laws like IPC 420, even after the suicide attempts?
7. How do we ensure that this doesn’t get buried as just another “domestic matter” or “loan dispute”?
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We’re all in shock. This was someone from our everyday life—a person we thought we knew and trusted. Now, dozens of families are under financial stress, and we’re trying to understand what’s possible—ethically, legally, and practically.
Any guidance—especially from those who’ve dealt with similar cases, lawyers, or finance/legal professionals—would really help.
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