Siddiqui was allegedly involved in a Ponzi scheme that was floated in 2012 by Admatrix Private Limited, which had duped more than a thousand people who had invested in its schemes. Siddiqui was a franchise of the firm . The police said that according to their estimate, the investors lost up to Rs 20 crore in the fraud investment scheme. A police source said that Siddiqui was arrested on the basis of a tip-off they had received about his whereabouts. “He was declared a proclaimed offender by the court. He had played an active role in luring people to invest in the scheme by promising them high returns.“
Siddiqui's associates and mentors -Ramniwas Pal, Ram Sumiran Pal and a few others--have already been arrested in the case. Siddiqui had managed to slip out of the police clutches.
In 2011, Admatrix lured its investors by promising lucrative returns. In the other scheme, SevenRings, the accused targeted investors from the high-income group.After initial payments, the of fice-bearers vanished. A doctor had alleged that he lost Rs 35 lakh in the scheme.
On March 28, 2012, two cases of cheating were registered against several people for their alleged involvement in two Ponzi schemes -Admatrix Private Limited and SevenRings International.Most of the accused in the two cheating cases are the same.The accused are also involved in the Rs 2,276 crore SpeakAsia fraud.
A police officer said that they are yet to examine Siddiqui's bank account details and interrogate him about where he has parked the money taken from investors. Siddiqui was produced before a special court, which has remanded him in police custody for five days.
The Times of India, May 16, 2017