Mumbai-based investment consultant and chartered accountant (CA) Amber Dalal, 59, accused of defrauding crores from several people on the pretext of investment, has allegedly duped hundreds of people in the United States of approximately $46.7 million (Rs 389 crore), investors who lost money to his alleged fraud have claimed.
An investor from the US said in an email conversation that in the US, most of Dalal’s investors are from California, New Jersey and North and South Carolina. Dalal’s smooth-talking skills and presentable approach worked in his favour; plus, some people had invested money with him for around 8-10 years, the investor said.
“He never asked anyone to invest money, it was always word of mouth. However, in September 2023, he started to ask for money, telling people it was a new scheme where they would get 1.5% extra and the money would be returned in March 2024,” the investor said, requesting anonymity.
The investor added, “There are several investors who put their life savings with Amber. Some are sick and this was their only way to get monthly returns. Some investors have put their IRA (individual retirement account) with Amber. Some families trusted him and invested money…he left them high and dry too. In the US, the total scam so far is $46.7 million. More people will speak up in April when they don’t get paid.”
The investor further said, “I am at retirement age and was banking on this money to last me through my old age. However, this (scam) is going to make me postpone retirement for another 5-10 years. This is going to take a toll on myself, my health, and my family.”
Another investor said, “Besides cheating scores of investors in India and the US, he also allegedly duped investors from the UK, Australia, China and the UAE.”
Investors also claimed that Dalal has properties in Dubai and has allegedly hidden money away in the Cayman Islands. Online complaints have been lodged with the Federal Bureau of Investigation on the matter, the investor added.
The Mumbai Police’s Economic Offences Wing (EOW) on Monday also informed a special court in Mumbai that analyses of Dalal’s phone call details indicate that he has made several calls and sent several messages to people abroad. “When asked questions related to investors abroad, Dalal did not cooperate with the investigation,” said an EOW officer.
Dalal, the owner of Ritz Consultancy Services, is suspected to have defrauded over 1,000 people to the tune of more than Rs 1,000 crore. So far, 628 investors have approached the Mumbai police claiming they lost Rs 579 crore to the fraud.
Amber Dalal’s police custody extended
On Monday, the EOW unit-12 produced Amber Dalal before the special Maharashtra Protection of Interest of Depositors (MPID) court and sought an extension of his police custody so that he could be questioned regarding the details collected from the laptops seized from his workplace.
Hiten Venegaonkar, who has been appointed as the special public prosecutor, said, “Huge amounts of data have been extracted from Dalal’s mobile phone and the computer system at Dalal’s office. To analyse these data and confront Dalal with his office employee, his further custody is required.”
“The EOW’s investigation indicates that the accused person has duped thousands of people, and the fraud amount involved in the matter is likely to go over Rs 1,000 crore,” Venegaokar added.
The defence lawyer, however, argued that Dalal’s custody was not required to analyse the data. After hearing both sides, the judge extended Dalal’s police custody till April 8.
The EOW has also written to the National Securities Depository Limited (NSDL), Central Depository Services Ltd (CDSL) and Multi Commodity Exchange of India Limited (MCX) to seize his Demat accounts and also sought details of Dalal’s and his firm’s income from the income tax department.
The Ponzi scheme
Promising monthly returns of 1.5 per cent to 1.8 per cent on investments, Amber Dalal allegedly ran a Ponzi scheme since 2010. He told clients that he invested the money in risk-free markets, including commodities. He had regularly been giving promised interests to investors for the past 14 years, until February 2024.
After defaulting on payouts between March 10 and 12, the Oshiwara-based Dalal suddenly vanished on March 14, causing panic among hundreds of investors who thronged his house and later the Oshiwara police station. Twelve days after he fled Mumbai, EOW officials arrested him from a hotel in Rishikesh, Uttarakhand.
The police are now trying to find out where the money was diverted. Investigators are also trying to trace properties in the name of Dalal or his family members.
