Case Summary
Gold-return chain schemes promised wealth multiplication through layered member networks and eventually collapsed under their own recruitment dependency.
Year
2012
Fraud Amount
โน100 Crore
Category
MLM
Sources
2 linked
The appeal of gold as both an emotional and financial asset made these schemes especially easy to market to families.
As with many chain models, promised returns depended more on continuous recruitment than on any durable underlying business.
The lesson is timeless: guaranteed wealth growth attached to social recruiting is a classic red flag.
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