Cyberabad Police’s Economic Offences Wing has unraveled a massive financial fraud a Ponzi scheme operated by an AI-based stock prediction scam that defrauded more than 3,100 victims across India. The accused Gaddam Venugopal (director of AV Solutions and Srinivas Analytics) and Shreyas Paul (employee of AV Solutions) were arrested on August 19, 2025.
Modus Operandi & Deception Tactics
The fraudsters ran a facade of legitimacy through several shell companies including IIT Capital Technologies, AV Solutions, Srinivas Analytics, and Trade Bulls Technology. They created at least eight deceptive websites, claiming fake registrations with SEBI, NSE, and BSE. These names and credentials misled investors into believing the scheme was safe, regulated, and insured.
The Lure Fake AI & Unrealistic Returns
Investors were promised an astonishing 7% monthly return (84% annually) through an AI-based stock prediction tool. Fake dashboards portrayed profitable returns, encouraging trust. Early investors did receive payouts, which helped maintain the illusion of legitimacy and attract more participants.
The Numbers at a Glance
| Metric | Details |
|---|---|
| Total Collected | ₹850.59 crore |
| Amount Returned | ₹618.23 crore |
| Defrauded Amount | ₹232.36 crore (retained by the accused) |
| Victims | 3,164 across multiple Indian states |
- AV Solutions collected ₹441.52 crore, returned ₹337.16 crore retained ₹104.36 crore.
- IIT Capital Technologies took ₹409.07 crore, returned ₹281.07 crore retained ₹128 crore.
Money Movement & Laundering
The scheme used over 20 mule bank accounts across major Indian private banks to layer transactions and avoid detection. A portion of the money was also routed through laundering channels abroad. The funds were invested in real estate, gold, and luxury vehicles.
Evidence & Operational Tactics
When investigations loomed, the fraudsters destroyed digital records, shut down websites, and intimidated victims. They also hosted investment seminars, maintained premium offices, and presented themselves as financial experts to strengthen credibility.
Current Status: Arrests & Seizures
Authorities arrested Venugopal and Paul. Assets seized include luxury vehicles, electronics, backend systems, customer databases, cheque books, property papers, and benami flats in Hyderabad.
