In 2010, Australian cricketer Brett Lee endorsed an Indian infrastructure group – Pearls Group. Turns out that this company and his owner – Nirmal Singh Bhangoo has been accused of fleecing 50 mn Indian investors to the tune of $10 bn.
India’s Central Bureau of Investigation (CBI), who is conducting the probe into this scam arrested Nirmal Singh Bhangoo and his relatives in January.
What is this scam?
Nirmal Singh Bhangoo's Pearls Group attracted investors through a Ponzi scheme and in return, promised land to the investors.
Many Indians park their savings into land and gold. Bhangoo’s company operated 256 offices across India. Agents were employed to get investors who were often small town farmers, shopkeepers, salaried employees. These investors were promised that their investments would double within 6 years and quadruple in 10 years. CBI has now frozen over 1000 bank accounts discovered in the name of Bhangoo and his associates.
Senior lawyer Mr. Pratap Venugopal told The Australian that most of times, the same plot of land was sold to multiple investors. According to Mr. Venugopal, the money gathered through these investors was then funnelled to different countries including Australia via Russian banks.
Pearls Group funnelled at least $130 million into Australia.
Will Brett Lee be examined about this Ponzi Scheme?
Australian cricketer Brett Lee endorsed Bhangoo’s Pearls Group in 2010.
As per a report in news.com.au, Lee’s former manager – Neil Maxwell has denied being aware about Bhangoo’s money-laundering and fraudulent activities.
The Australian says that the lawyers involved in the case will examine the role of celebrities such as Lee who endorsed Pearls.
Other cricketers will be investigated too
Indian cricketers Yuvraj Singh and Harbhajan Singh received plots from the Pearls group in Mohali (Punjab). CBI is investigating cricketers involved with the schemes of Pearls group, says the report.
