QNet: Mumbai police issue lookout notice against 10 including Michael Ferreira, Vijay Eswaran

Mumbai Police have issued lookout notice against 10 people including QNet founder Vijay Eswaran and former billiards champion Michael Ferreira in the Rs425 crore QNet scam case

The economic offences wing (EOW) of Mumbai police has issued lookout notices against 10 people including Michael Ferreira, former World Billiards Champion and Padma Bhushan awardee, after he failed to turn up for questioning in the QNet scam case. Other people against whom the lookout notice has been issued include QNet founder Vijay Eswaran, its vice president Dev Wadhwani and Sachin Gupta.
Vijay Eswaran with Michael Ferreira (circled) at one of the promotional events of QNet

According to sources, EOW has also issued notices against six other officials and leaders of QNet. However, their names were not revealed by the sources.

Ferreira was summoned by the EOW in connection with the Rs425-crore scam allegedly committed by multi-level marketing (MLM) operator QNet. The former world champion is founder of Faith, which was started as a distributor network under the QI brand.

Last month, while speaking with news channels, Ferreira, who has gone abroad some time back, had said he would appear before the investigators as soon as he returns to India. He even defended the controversial company.

The Padma Bhushan awardee had told the channels that "three to four days ago, the summons was received at my home (in Mumbai) in my absence. I am abroad now. The summons was handled by my lawyer and I understand he is co-operating fully."

Responding a query, he had said "of course, I shall make myself available (before the Economic Offences Wing of the Mumbai police). I have the highest regard and respect for the police. As soon as I am cleared to travel, I will appear before the EOW. I am undergoing a lot of stress at the moment."

However, former World Billiards Champion did not turn up before the EOW, which resulted in police issuing a look out notice against him.

Others against whom the EOW has issued lookout notices, include Dev Nanik Wadhwani. He is founder of team Infinity, the most aggressive team of QNet's independent representatives (IRs) at present in India. Sachin Gupta is one of the so-called 'top leaders' of QNet from Mumbai and according to sources may have fled to Dubai.

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.

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.

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.

QNet: The Suresh Thimiri link between Vihaan and Transview

Mr Thimiri, the so-called CEO of the controversial MLM, owns registered trademark of QNet in India. He also admitted before the High Court that his company Transview imports and manufactures products for selling to Vihaan Direct, the official franchisee of QNet in India

The case of QNet, the Hong Kong-based controversial multi-level marketing (MLM) operator is taking new twists every day even as all top executives of the company in India decided to stay hidden citing a case filed with economics offences wing (EOW) of Mumbai police.

Interestingly, Suresh Thimiri, who is often touted as QNet India's chief executive and had denied any relationship with QNet or any of its representatives, owns the 'QNet' trademark in India through his company Transview Enterprises Pvt Ltd! See the images below obtained from Trade Marks Registry. Mr Thimiri's company has filed class 42 application for 'QNet' trademark in India.



As Moneylife reported, Mr Thimiri, in his anticipatory bail application filed on 19 August 2013, before additional session Judge DA Dholkia had said, "The applicant (Thimiri) does not hold any sort of relation neither with the Company (QNet) nor its representative (including Eswaran and Vihaan Direct Selling India Pvt Ltd) against whom the Complaint has been lodged by the respondents (Gurupreet Singh Anand) in Oshiwara Police Station." (See image below)

Transview Enterprises is an associate company of Vihaan Direct Selling that handles QNet's MLM operations in India since 14 April 2012. Before that QNet's Indian operations were controlled by QuestNet Enterprises (India) Pvt Ltd, a company registered at Chennai. QuestNet Enterprises was operating QNEI eStore, a platform from where IRs, which is how the investor-dealers of QNet are described, could place orders or buy products and also enrol new recruits. After launching Vihaan, the company asked all its old IRs to mandatorily register under the new business name in order to receive their commissions. Vihaan is a direct selling agent of QNet and had done large financial transactions with Mr Thimiri's company Transview. This made the EOW to freeze Transview's bank accounts in ING Vyasa Bank at Bengaluru.



Mr Thimiri, who in his anticipatory bail application had denied any relations with QNet and its representative, has ratified deals between Vihaan Direct Selling and his company, Transview Enterprise.

In his application before the Bombay High Court to defreeze bank accounts of Transview Enterprise, Mr Thimiri said, "The applicant (Mr Thimiri, director of Transview) is in the business of importing and manufacturing products such as Bio Discs, Chi Pendants, Nutriplus, Homepure, watches and various other products and sells the same to M/s Vihaan Direct Selling India Pvt Ltd."



These revelations may come as shocker to few die-hard independent representatives (IRs) of QNet as they strongly believe that all QNet products are imported! From where? Only the company knew about, as it is kept hidden from public view. Anyway, now with Mr Thimiri's clarification about 'manufacturing' of QNet products, these IRs will know the truth.

After perusing both the applications filed by Mr Thimiri before Courts, here are some facts...
1. Mr Thimiri accepted that Transview does not have any relations with Vihaan Direct Selling except supplier-purchaser relations.
2. Mr Thimiri's Transview Enterprise owns the QNet trademark (used exclusively by Vihaan) in India.
3. Vihaan Direct Selling is QNet Ltd's franchisee that carries the QNet brand name in India. After launching Vihaan, the company asked all its old IRs to mandatorily register under the new business name in order to receive their commissions.
4. Mr Thimiri has been named as accused in the report submitted by the EOW before the Sessions Court, Mumbai. It states: “The accused Suresh Thimiri has played active role in running the Money Circulation Scheme under the guise of investment opportunity and the income earned by the participants is based on enrolment of new members into the scheme.”

While Mr Thimiri is trying very hard to de-link himself from the probe, his own submissions are revealing truth. Vihaan Direct Selling carries 'QNet' brand in India that is registered trademark of Transview Enterprise of Mr Thimiri. The submission made by Mr Thimiri before the Courts only underline his links with QNet in India.

Another interesting aspect in the whole episode is all top officials (?) of QNet India do not want to reveal their identity and remain hidden. We repeatedly sent emails to the company's official PR agency and also some officials from its parent QI group.

We asked "Can you please tell us about Mr Suresh Thimiri, who is often labelled as India CEO of QNet on QNetIndia's Facebook page. Is Mr Thimiri the CEO of QNet in India? If not, then who heads QNet in India and who are the top management people? In addition, we would like to know the relations, if any, between QNet, Vihaan Direct Selling India Pvt Ltd and Transview Enterprises Pvt Ltd."

Here is the reply we received from the PR agency of QNet India...
"This is apropos our telecon now a while back and in furtherance to our earlier discussion which took place on the 30 August 2013 with regards to our client QNET, referred by you in your email. On your request, we reached out to our client again today, but they were of the same considered view that since the matter is still sub-judice, they would not like to give any comments for the time being. We will be happy to reach out to you should our client decide to make any statement to the media in the future."

QNet: EOW arrests V-Elite leaders Sandeep Kalra and Hitesh Miglani

Kalra from Delhi and Miglani from Bangalore have had pocketed lakhs of rupees through the MLM scheme and organised several training camps to lure investors. Both were intercepted by immigration authorities as their names were on a look out circular issued by EOW

The Economic Offences Wing (EOW) of Mumbai Police arrested Sandeep Kalra and Hitesh Miglani, senior independent representative (IR or agents) of controversial multi-level marketing (MLM) company QNet. Both were picked up from Delhi International Airport. Meanwhile, the MLM and its leaders are also booked under the Drugs and Magic Remedies (Objectionable Advertisements) Act, 1954 as well for selling plastic and glass products terming them miraculous objects for treating severe diseases like Cancer.

 

Kalra and Miglani were intercepted by immigration authorities at the Indira Gandhi International Airport at Delhi last night, say media reports. Both belong to the ‘Infiniti’ team at QNet and part of V-Elite leader’s team. 

 

The duo, who arrived from Dubai in separate flights, was stopped at the airport as Look Out Circulars (LOC) were issued against them by the EOW probing the case. 

 

The two suspects, who were suspected to have had pocketed lakhs of rupees through the scheme and organised several training camps to lure investors, have been subsequently brought to the metropolis and placed under arrest this evening, police said.

 

The LOCs have been issued against those whose statements have been necessitated in the probe but did not appear before the investigators despite summons.

 

Kalra hails from Delhi while Miglani is from Bangalore, police said adding that this is the first arrest of those against whom LOCs had been issued.

 

The EOW had earlier arrested 15 persons for allegedly duping investors by selling QNet products, including magnetic disks, herbal products and holiday schemes, through allegedly fraudulent means.

 

The EOW has invoked the stringent Maharashtra Protection of Interest of Depositors (MPID) against the company which has denied any wrongdoing on its part.

 

QNet has also been accused of using the banned binary pyramid business model. An FIR in the case was registered in August in 2013. The accused had been charged with cheating and forgery under relevant sections of the Prize, Chits and Money Circulation Schemes (Banning) Act, 1978.

 

EOW booked 19 accused including Michael Ferreira, the former world champion of billiards and five companies related with QNet, under the MPID Act. This means all the cases against QNet, Vihaan and all those involved in the MLM scam would be heard before the special MPID Court. Until now, the accused were being investigated for cheating and forgery under the Prize, Chits and Money Circulation Schemes (Banning) Act 1978, and for money laundering by the Enforcement Directorate (ED).

 

Gurupreet Singh Anand, a computer consultant from Lokhandawala, Andheri in his first information report (FIR) stated that his wife was duped for Rs30,000 by some people who had introduced themselves as the independent representatives (IRs) of QNet. Anand told the police, “They (IRs) had said that one of the bio-products my wife bought could be used to treat my 12-year-old son's brain-related diseases.”