Ulhas Prabhakar Khaire and his wife Raksha were recently held for duping investors of hundreds of crores. The news in media paint these two persons as arch villains. Promising to double invested funds in 7 months and then one fine morning/night decamping with the entire loot.
They have conned supposedly 2.05 lac investors over a period of possibly 3 years.
But one point is lost here. Why did those 2.05 lac investors fall for this offer? Ankur Sachdeva, the Delhi businessman was no babe in the woods. He had put in R 2 lac earlier and went on to put an additional R 10 lac. As a businessman, he must have known 20% return per month was highly suspicious. Admittedly, if one was trading the stock market Intraday and leveraging one's funds with Nifty Futures or Options trading, the returns can be as high as 100% or more if trading is done with proper analysis and using strict stop loss levels. But that is something known only to the very few Intraday traders who use Intraday technical analysis perfectly.
So not only Ankur Sachdeva, I suspect a majority of the investors knew what they were investing into was a potential scam and that they could lose their money.
More so when you know several of these types of scams have taken place earlier. I remember, a person did it twice in Kolkata in between 2003 and 2006. Similar scams have been reported in the media every 2/3 years. So investors in this scheme knew that this could be a scam and still went ahead.
The system works this way: Initially you service the investors who will bring you more investors and/or more investments. Then once you have a substantial amount, either you disappear or spend some money and have a police/income tax raid at your office. Then you can claim the entire matter as sub-judice or claim your accounts have been seized so you can't pay back.
Even corporate entities have in the past done it successfully. I remember G R Magnets, a Company I was slightly involved in promoting their IPO in 1987/8 or so, was raided for some customs related issues and disappeared from the stock markets. Their stock price was at R 126 in 1995/6 when the raid happened. Thousands of shareholders must have lost hundreds of crores. But in these sort of cases, stock holders are innocent investors.
But in the case of Khair and similar get-rich-quick-deposit schemes, investors are not innocents. The were driven by greed and they perished by it.
Like Ankur Sachdeva, many did get to double their initial funds and increased their deposits with Stock Guru. Its their greed for more windfall income drove them to invest their money in a potential scam. They took a risk and it didn't come off. Just like when you speculate int the stock market. So why protest now? Why do you cry 'scam' now? You all along knew it could be one and still went ahead and now you are blaming the scamsters only. Why don't you blame yourself? Why don't the investors have the honesty to take responsibility for their actions?
My stand may not be appreciated by anybody, not by the investors to Khaire's scheme anyway. But being in the business of stock market analysis and related services - admittedly for about 1/20,000th time of the size of Khaire - I feel affected too. Not just it makes our services and offers suspect - though I am not in the business of taking deposits - it paints your efforts as a scam.
People like us, specially one man run services, run the risk of abuse from competitors, paid mud-slingers and failed traders who are similarly unable to accept their own responsibility for their failings. And now Internet offering easy platform for abusing anything and anybody, you always have some audience to cater to. An one-man show like me do not have the luxury of complaining to police or initiating legal actions.
I have had my share of mud-slinger and abuser too. I don't reply back. Rather I prefer to let it stand so that the next person who decides to learn from me is informed about the opinion some one had on me and my services. Let them take an informed decision. On one hand, I have my web sites which explains in details (I have so far not found any Indian web site which is as informed and detailed about the contents of the training courses and the trading system) and on the other hand the mud-slinger's opinion. Let the person chose between the two, in an informed manner. And later, be responsible for his/her success or lack of success.
They have conned supposedly 2.05 lac investors over a period of possibly 3 years.
But one point is lost here. Why did those 2.05 lac investors fall for this offer? Ankur Sachdeva, the Delhi businessman was no babe in the woods. He had put in R 2 lac earlier and went on to put an additional R 10 lac. As a businessman, he must have known 20% return per month was highly suspicious. Admittedly, if one was trading the stock market Intraday and leveraging one's funds with Nifty Futures or Options trading, the returns can be as high as 100% or more if trading is done with proper analysis and using strict stop loss levels. But that is something known only to the very few Intraday traders who use Intraday technical analysis perfectly.
So not only Ankur Sachdeva, I suspect a majority of the investors knew what they were investing into was a potential scam and that they could lose their money.
More so when you know several of these types of scams have taken place earlier. I remember, a person did it twice in Kolkata in between 2003 and 2006. Similar scams have been reported in the media every 2/3 years. So investors in this scheme knew that this could be a scam and still went ahead.
The system works this way: Initially you service the investors who will bring you more investors and/or more investments. Then once you have a substantial amount, either you disappear or spend some money and have a police/income tax raid at your office. Then you can claim the entire matter as sub-judice or claim your accounts have been seized so you can't pay back.
Even corporate entities have in the past done it successfully. I remember G R Magnets, a Company I was slightly involved in promoting their IPO in 1987/8 or so, was raided for some customs related issues and disappeared from the stock markets. Their stock price was at R 126 in 1995/6 when the raid happened. Thousands of shareholders must have lost hundreds of crores. But in these sort of cases, stock holders are innocent investors.
But in the case of Khair and similar get-rich-quick-deposit schemes, investors are not innocents. The were driven by greed and they perished by it.
Like Ankur Sachdeva, many did get to double their initial funds and increased their deposits with Stock Guru. Its their greed for more windfall income drove them to invest their money in a potential scam. They took a risk and it didn't come off. Just like when you speculate int the stock market. So why protest now? Why do you cry 'scam' now? You all along knew it could be one and still went ahead and now you are blaming the scamsters only. Why don't you blame yourself? Why don't the investors have the honesty to take responsibility for their actions?
My stand may not be appreciated by anybody, not by the investors to Khaire's scheme anyway. But being in the business of stock market analysis and related services - admittedly for about 1/20,000th time of the size of Khaire - I feel affected too. Not just it makes our services and offers suspect - though I am not in the business of taking deposits - it paints your efforts as a scam.
People like us, specially one man run services, run the risk of abuse from competitors, paid mud-slingers and failed traders who are similarly unable to accept their own responsibility for their failings. And now Internet offering easy platform for abusing anything and anybody, you always have some audience to cater to. An one-man show like me do not have the luxury of complaining to police or initiating legal actions.
I have had my share of mud-slinger and abuser too. I don't reply back. Rather I prefer to let it stand so that the next person who decides to learn from me is informed about the opinion some one had on me and my services. Let them take an informed decision. On one hand, I have my web sites which explains in details (I have so far not found any Indian web site which is as informed and detailed about the contents of the training courses and the trading system) and on the other hand the mud-slinger's opinion. Let the person chose between the two, in an informed manner. And later, be responsible for his/her success or lack of success.
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