Woman arrested over fraudulent investment scheme which stole millions

A woman has been arrested by the Police Fraud Investigation Bureau for aiding and abetting in the defrauding of over Rs 100 million from several individuals in an investment scam by using forged documents baring the name and insignia of a leading insurance company in the country. 

Iranganie Mallika Fernando, 60, had helped dupe unsuspecting victims by promising to deliver extraordinarily high returns on investment.

Cases have been filed against her with the special criminal investigation units of Mirihana, Panadura and Moratuwa, an officer of the Police Fraud Investigation Bureau told Ada Derana. 

The main suspect behind the high-yield investment program, Nishadhi Dhanushka, is yet to be arrested and is believed to be in hiding, but has still not left the country, he said.

The insurance company in question had initially lodged a complaint with the Police Fraud Investigation Bureau regarding the investment scam which was being carried out using the company’s name while later it continued to receive complaints from individuals who were duped by the scheme. 

A high-yield investment programs (HYIP) are a type of Ponzi scheme, an investment scam that promises unsustainably high return on investment by paying previous investors with the money invested by new investors.