Michael Ferreira, the former billiards champion and recipient of Padma Bhushan is the founder of 'Team Faith' that is involved in hard selling the QNet scheme across India and Egypt
The economic offenses wing (EoW) of Mumbai police has summoned Michael Ferreira, the former billiards champion in connection with the Rs425-crore scam allegedly committed by multi-level marketing (MLM) operator QNet.
The police will question Ferreira about his association with the scam-hit company and his role. The former world champion is founder of Faith, which was started as a distributor network under the QI brand.
QNet operates in India through its official franchisee Vihaan Direct Selling Pvt Ltd, which carries the company's brand name in the country. Ferreira owns 80% stake in Vihaan Direct Selling with Malcolm N Desai holding the rest. Desai had already approached the Sessions Court in Mumbai for an anticipatory bail fearing that the EOW may arrest him soon.
Image: Documents procured from Registrar of Companies (RoC).
Gurupreet Singh Anand, 40, a computer consultant from Lokhandawala, Andheri, who filed first information report (FIR) against QNet had, requested the EOW to add name of Michael Ferreira as one of the accused in the case. He also sent a letter to the President of India requesting him to strip Padma Bhushan, the third highest civilian award in India, given to Michael Ferreira.
According to Faith Egypt, Michael Ferreira is the founder of 'Team Faith' that is involved in hard selling QNet scheme. Talking about Ferreira, it says, "As an individual, in a very short space of time he (Ferreira) was in the list of the top 30 earners and under his astute stewardship he provided the platform, environment, guidance, training and inspiration to his flock, many of whom are earning incomes beyond their wildest dreams."
Showing a clear link between, Ferreira, QNet and its founder Vijay Eswaran (one of the accused in the cases against the MLM operator), the portal says, "The core leadership of Faith is today in a position to concentrate more sharply on those who still remain vulnerable to the “slings and arrows of outrageous fortune” so that each one of them develops into lead birds of their own teams, all fiercely loyal to Faith, its philosophy and its ideals and to the values espoused by its visionary and mentor Dato Vijay Eswaran."
Faith Egypt, also reveals names of other people, like Mark Ferreira, Malanie Sequeira, Lata Hegde and Manjunath Hegde, all of whom are associated with QNet. In August 2013, the EOW had arrested Bandra-based Manjunath Hedge for cheating in the QNet case. The EOW searched his house and seized computer hard disc and several incriminating documents, including some payment/ commission receipts.
Here is what Faith Egypt says, "Team Faith relies heavily on its global core leadership, chief of whom is the powerful, knowledgeable, business strategist and dreamer Mark Ferreira, the gentle but steely ‘never say die attitude’ of Melanie Sequeira, the extremely knowledgeable and detail oriented Lata Hegde. In Manjunath Hegde we have a master who understands the brain, and its many secrets combined with psychology."
Last month, the EOW arrested eight of QNet's agents or independent representatives (IRs) as the MLM refers them. The EOW also froze bank accounts of these people. The EOW also froze Rs1.8 crore from Vivekkumar Singh's bank account. Shashibhushan Rameshwar Pandey had Rs70 lakh, his wife Namrata Pandey had Rs2.5 crore, Sabeena Vijay Mathew (Rs1.2 crore), her husband Vijay Mathew (Rs74 lakh), Jagdevsingh Bhulsingh Parmar (Rs70 lakh), Rohit Chandra (Rs1.2 crore) and Mahesh Baharwali had Rs42 lakh in their bank accounts, all of which is now frozen by the EOW.
Earlier, in August, the EOW froze six bank accounts of QNet and its associates with a balance of Rs46 crore in all these accounts. EOW had registered a case against QNet, for allegedly duping thousands of investors by selling them plastic and glass products terming them miraculous objects for treating severe diseases like Cancer.
As reported by Moneylife, QuestNet and GoldQuest, the MLM companies that had shut shop in 2009 following police action are back with a bigger bang. They now call themselves as QNet and are thriving in an environment where tens of thousands of Ponzis and MLM companies are able to lure people into believing that they have the formula to instant riches and a high growth career.
Meanwhile, QNet has closed a portal used by people to seek refund from the company. The portal, www.getsatisfaction.com/qnet/ now shows a message, "Sorry, the community that you’re looking for has been retired and is no longer available. If you need help, please contact the company you're looking for directly."
Last seen, there were a number of requests filed by IRs for refund from QNet.
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NSEL said it has recovered part payment out of Rs637.49 crore from PD Agroprocessors and would use the money for paying back to its investors
National Spot Exchange Ltd (NSEL) had said that Ranjeev Aggarwal, the erstwhile chief financial officer of PD Agroprocessors (PD Agro), the third largest borrower of the Exchange, has offered to pay Rs42.77 crore as part payment.
"Ranjeev Aggarwal, who is currently the director of Primezone Developers Pvt Ltd (Primezone), agreed to pay NSEL Rs42.77 crore in eight instalments, vide cheques as per the schedule agreed upon. The first payment of Rs1 crore, as per the schedule, has been received," NSEL said in a release.
This amount was jointly invested by PD Agro, Mohan India and Swastik Overseas in a project being developed by Primezone in Karnal, Haryana.
Of the amount indirectly invested in Primezone’s project, PD Agro’s contribution was Rs31.10 crore, while that of Mohan India was Rs10 crore. Swastik Overseas invested an amount of Rs1.67 crore in the project.
NSEL said, "PD Agro, the third largest borrower, of the Exchange, traded on behalf of Dunar Foods Ltd, Dulisons Cereals and Dulisons Foods, and has a payment obligation of Rs637.49 crore. So far it managed to pay only Rs7.06 crore of the outstanding amount. It is believed that investors such as PD Agro siphoned amounts due to investors from the trades executed on the NSEL platform."