Hyderabad: Cyberabad Police have dismantled a major financial scam, arresting two people linked to AV Solutions. The suspects used advanced AI investment platforms and Ponzi schemes to attract over 3,000 investors from multiple states with false promises of regular returns.
Those arrested include Gaddam Venugopal, a director of both AV Solutions and Srinivas Analytical Pvt. Ltd., from Prakasam District, Andhra Pradesh, and Shreyas Paul, affiliated with AV Solutions, from Ballari, Karnataka. The arrests took place in Hyderabad on August 19. Authorities confiscated luxury cars, 11 laptops, 3 mobile phones, trading access, a database of 3,164 customers, 14 checkbooks, 30 promissory notes totaling Rs 3.37 crore, property documents, company seals, and properties in Manikonda and Happy Homes, along with evidence of benami transactions.
Police reported that the company employed over 20 consultants and agents in major cities, supported by technical developers and website managers. DCP Crime A Muthyam Reddy revealed that 3,164 victims, including 2,388 from AV Solutions and 776 from IIT Capital, were defrauded of Rs 850.59 crore. The fraud, which retained Rs 232.36 crore, spanned 2022 to 2025, with two years of inactivity. Key companies involved were IIT Capital Technologies with a fake address in Madhapur, AV Solutions in Sri Nidhi Nest, Kondapur, and others like Srinivas Analytics Pvt. Ltd. and Trade Bulls Technology Pvt. Ltd.
Fraudulent websites used included www.iitstockmarket.com, www.myshareprofit.com, and others. The company falsely claimed to have NISM/NSE/BSE certifications and held investment seminars in Andhra Pradesh and Telangana. They targeted middle-class families, retirees, and professionals, using a referral system and psychological profiling to exploit weaknesses.
Their scam promised investors a 7% monthly return, equating to 84% annually, through fake AI predictions. They created fake dashboards showing false profits and followed a Ponzi model, using 20-30% for limited trading, 40-50% to pay earlier investors, and siphoning the rest for personal use.
