Coimbatore: The city crime branch has arrested Selvaraj, 40, of Bhavani, one of the founders of a Saibaba Colony-based financial firm, which allegedly cheated more than 50 people of Rs 50 crore.
Selvaraj and K S Ravikumar from Salem had launched VV Traders five months ago, police sources said. Advertisements for the firm, which was said to be engaged in stock trading and commodity trading among others, stated that those investing Rs 1 lakh will get an interest of 2% a day or Rs 10,000 a week and also Rs 2.5 lakh in 25 weeks.
The firm paid the Rs 10,000 interest promptly every week to the first few investors. “As more people began to invest, they stopped paying interest. When the investors questioned, they shut the shop suddenly,” a police officer said.
Police are on the lookout for Ravikumar.