REPORT FOR INVESTIGATING OFFICER

AIM

This report aims to bring to the concern of the Investigating Officer about the functioning of
the company named IX Academy private limited, which is allegedly a company involved in
the Multi-Level Marketing Scams, illegal forex cross currencies trading with the help of
unregulated forex broker via Hawala or any other virtual currencies and is defrauding several
people by taking their hard-earned money and not paying back them their earnings.

The approximate turnover of this company would be INR.500-700 crores from the Indian
population. The report is prepared after taking the interview of the person trapped in the
scam who lost his hard-earned money and was threatened by the company.

The report will bring into the general concern about the nature of the offence committed and
its cognizable nature.

Modus Operandi

IX Academy private limited is a private company under section 2(68) of the companies Act,
2013. Mr. Joseph Anthony Martinez Jr. and Mr. Viraj Suhas Patil are/were the company's
two directors. The company's prime objective is to lure the people for affiliate marketing, and
the access to the courses and applications are offered as entry fees (monthly subscription).

The company directors were earlier involved in similar operations under different names, and
one such is "Kuvera Global “, "Sherlock" & Others also where they provided identical
services and tried to lure the people and take them into the vicious cycle of money
circulation schemes.

The opportunity is associated with the referral of the courses to other people, and in return,
the participants are paid various types of bonuses.

The modus operandi of the company is that they ask the participants for a fixed monthly fee
for access to various online courses and applications which allows them to recruit other
individuals using the same modus operandi and earn income from this act. The monthly
investments per individual range from US$ 125/INR. 9325.53 to US$ 180/ INR 13,428.77.

Once they start enrolling individuals below them, they earn a bonus and that bonus is given
in the private wallet of the company in the form of a virtual currency (Not INR as committed
via the compensation plan) generated by the company, which the RBI does not even
approve.
These all are done to delay the pay-out and not give the participants the money committed.
The person with funds in the private wallet can recruit other persons and collect cash from
them, therefore, getting more investors/victims, and the chain goes on.

The aggrieved person is left with no other option except to act against the person who
frauded him. The crime of fraud is a cognizable offence, and a mere FIR will work against
who committed fraud.

The business model of the MLM

IX Academy private limited charges a subscription fee monthly in Basic, Pro and Premium
versions with a different cost for different services.

It masquerades* as the "Direct selling" operation, which means marketing, distribution, and
sale of goods or provision of services through a network of persons (registered with the
company as independent contractors), other than through a permanent retail location/s.

The company follows a Pro binary compensation plan and a binary marketing organization
structure.

To join the company and get the opportunity to earn, the prospect has to pay for the course.

The pay-out committed in the compensation plan is made to the private wallet of the
company (owned and operated by the company). In addition, participants get a bonus
whenever they add a new member to the company who pays for the access to the online
training and applications.

Why is it a Ponzi/ Unsustainable Business Model?

Ponzi schemes require an initial investment and promise above-average returns. They use
vague verbal guises such as: -

i. "Hedge futures trading",

ii. "High-yield investment programs", or

iii. "Offshore investment"

iv. "Forex trading"

The company charges the initial investment for enrolment packs with monthly fees of US$
125, 145 & 180, because of which the participants luring the new persons in the business
would benefit in the form of virtual currency.

Apart from this, there were several other offline trainings that the company was offering for
which they charge money.
This company is money circulation (Rob Peter to pay Paul) because:

The company takes in money in INR via E-wallets (G-pay, etc.) and commits to giving
educations in forex and other money market but they not provide any kinds of proper study
materials or prior notes for study they took random lecture with random subject to confuse
the members & then ask for other deposits for giving high returns on the invested amount in
the form of virtual currency generated by the company in the wallet operated by the
company. This virtual currency is not recognized in the real world by any government or
private entities and can only be used to recruit new members and take cash from them.

The company's business model entirely depends on the members paying monthly
subscription fees for highly priced online products (no individual will pay a similar price if
there was no opportunity associated) and does not generate any income to substantiate the
commitments made to the investors & Commission from the brokers which is doesn’t know
the member of the company. Company gets a high returns bonus from the broker for joining
& Trading.

The other aspect which is making it a Ponzi scheme is the process of the pay-out that is
being followed by the company, which is highly questionable and a matter of investigation
that the pay-out is done on the website of the company and in the wallet of the company and
the members of the company are not aware of the pay-out facility and at the end of the day
when people end up working so much for getting the profit that are still left with nothing.

The same has been prohibited under Section 3 of the banning of unregulated deposit
schemes act, 2019, and the same can be read as -

The Banning of Unregulated Deposit Schemes. — On and from the date of commencement
of this Act, —

(a) the Unregulated Deposit Schemes shall be banned; and

(b) no deposit taker shall, directly or indirectly, promote, operate, issue any advertisement
soliciting participation or enrolment in or accept deposits in pursuance of an Unregulated
Deposit Scheme.

The company also collects direct cash from its members which is unaccounted for and
makes it liable for a GST Fraud. This cash (liquid money) is susceptible to being transferred
in the alleged money circulation scheme through Hawala. The broker company – TP
GLOBAL SERVICES PRIVATE LIMITED – is believed to be facilitating the Hawala and also
moving the money through its shell companies.

One of the suspicious accounts of its shell companies is -

Account Name – TPG Services

Account Number – 266505500069

IFSC Code – ICIC0002665

Branch – Kolkata Mahamayatala

UPI – tpgservices@icici

Kindly include https://www.rbi.org.in/Scripts/BS_CircularIndexDisplay.aspx?Id=6819

in the complaint as well and indicate the violation of these guidelines by the company TP
Global. IX Academy endorses this company and most of the company’s members have their
accounts opened up in TP Global.

The directions contained in this circular by RBI have been issued under sections 10(4) and
11 (1) of the Foreign Exchange Management Act, 1999.

This has been issued in order to exercise the due caution and be extra vigilant in respect of
the margin payments being made by the public for online forex trading transactions through
credit cards / deposits in various accounts maintained with banks in India.

The overseas foreign exchange trading has been introduced on a number of internet
/electronic trading portals luring the residents with offers of guaranteed high returns based
on such forex trading. The advertisements by these internet / online portals exhort people to
trade in forex by way of paying the initial investment amount in Indian Rupees. The company
IX Academy Private Limited is allegedly involved in the same forex business and is taking
the hard-earned money of the people and thus the company along with its directors and
other companies working in the close association and operating the forex trade.

The applicable laws in which the crime committed can be booked, and the same are as
follows: -

1. Section 3 – The Banning of Unregulated Deposit Schemes Act, 2019 - The company
is Promoting, operating and issuing advertisements soliciting participation or enrollment
in or accepting deposits in pursuance of an Unregulated Deposit Scheme.

2. Section 120A, 418, 420, 468, 503 & 506 IPC - The Company is involved in
committing fraud, criminal misappropriation.
 3. Section 3 and 4 MCOCA Act 1999 The Company is involved in the organized crime
syndicate as there is a web of people working to earn money fraudulently who had been
engaged in similar operations earlier and therefore planned this one carefully so as to fly
below the radar of the law enforcement agencies.

4. Under Foreign Exchange Management Act (FEMA), 1999 acts as a company directly
or indirectly involved in Forex cross circumcise trading, virtual circumcise trading and
other financial instrument trading with the help of illegal and unregulated brokers in India
under the RBI, SEBI Other legal entities.

5. Section 3 of Prevention of Money Laundering Act- The company is trying to make

6. Under Prize Chits and Money Circulation Schemes (Banning) Act,1978 - Section 3,
Section 5 A, B, C (C (i), (ii), (iii), D, F, Section 6 (1), (2) The company is directly involved
in the circulation of the money by the Act, and the UPCMCS Act has explicitly barred the
same.

7. Consumer Protection Act 2019- Section 2 (1) vi, 5 The company by the very Act of
defrauding the participants who are in others is the customer (the individual paying for
the goods) making it an offence under the CPA, 2019.

8. Central Goods & Services Tax Act 2017 Section 122 1(i), 2(b), 3. The company has
not issued any invoice to the customers; hence, the same is an offence under section
122 CG&S Act and therefore not filed the correct information of sale on the GST portal.

*The company does not follow the direct selling guidelines and therefore not a direct selling
company.

The company is not in compliance with the Maharashtra Direct Selling Guidelines 2016
-Clause 1 Section 7,10,11 b, c, d, e, s, f, g, Clause 2 Section 2, 3, 5, 6, Clause 3 Section 2,
4, 6, 7 a, b, c, d, e, f, g, h, i, Clause 4 Section 1a, 2b, d, Clause 5 Section 2, 3, 4 b, c, d, e, f,
g, 6 a, b, c, d, e, f, Clause 6 Section 1.1, 3 Clause Section 5c, Clause 8 Section 1, 2.
Note: IX Academy, IX Global and others also violate RBI, SEBI, Income Tax or Direct
Indirect, Professional tax, TDS, and many other government entities legal guidelines.

Important Documents

The essential documents that will help in the investigation are listed as follows: -

1. Incorporation certificate of the company

2. Memorandum of Association of the Company.

3. Articles of Association of the Company.

4. Bank Account details of the Company

5. Brochure of the Company.

6. The Bill of Transfer of the Complainant. (Google Pay Slip)

7. The membership details of the Complainant.

8. 2 New Directors appointment letters

9. Notice, Resignation, Acceptance letter Of the Viraj Patil

10. Business associate form of the Company.

11. Other Board Resolution, Forms, auditors report of the Company.

12. Proof of Registered Address of Viraj Patil Residential address

13. Utility Bill of The Company

14. Tardeo Police Investigation officer letter stating complaint all details sent to Mumbai
EOW for further investigation.