CIB Receives Complaints of HyperFund Fraud Exceeding 10 Billion Nepali Rupees

On December 25, 2021, Baburam Kandel from Butwal was persuaded by a friend to join HyperFund, an online networking business. He joined with little hesitation, anticipating substantial returns.

Kandel’s initial investment was USD 1,000 (Rs. 132,947.40 at the current exchange rate). Over the next four months, he invested further, eventually committing around USD 10,000 (Rs. 1,329,474).

Early returns encouraged Kandel to invest more. Frequent Zoom meetings organized by those involved in the scheme promised higher returns with increased investments.

Ultimately, he lost his savings and unintentionally misled others into joining. Kandel reports that scammers are now operating under different names such as “SBG Global,”  MMIT, V-TABS, and V-LIFE.

Currently residing in the Maldives, Kandel shared his experience in a virtual conversation with RSS (National News Agency). He noted that many victims are hesitant to speak out, fearing legal repercussions.

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Similarly, Ranjana Shrestha, a Nepali nurse living in the UK for over 18 years, faced severe economic, mental, and social setbacks after losing millions of rupees. She invested money from family members, friends, and colleagues into a business that turned out to be a disastrous scam.

Convinced by a friend of her spouse, she invested in the fund on August 5, 2021, believing in its legitimacy. Unaware it was a scam, she persuaded her family members in Nepal to invest, hoping for profitable returns.

She also managed to persuade her colleagues, leveraging her reputable standing to recruit several people. Gradually, she convinced more family members and relatives to invest, trusting the scheme completely.

Whenever she checked the website, she felt reassured by the apparent growth of her deposits, believing she could withdraw and use them when needed. However, she and her recruits have not been able to withdraw any of their investments.

Shrestha, horrified by the situation, said she is part of a community that has also fallen victim to the scam and hopes for Nepal Police’s support to recover their investments.

“Although the financial loss can be quantified, the emotional, psychological, and social impact is immeasurable,” she shared. She and others in similar situations aim to raise awareness to prevent others from becoming victims of illegal financial schemes.

Together with her spouse, she regularly attends meetings with other victims to ensure those responsible are brought to justice. “I am dedicated to supporting all affected members and will be with them until justice is achieved for all victims,” she stated. Such stories of gullibility and risky ventures are all too common.

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DB Thapa, who has 20 years of experience working in the civil engineering department of an aircraft in Dubai, recently approached the Central Investigation Bureau (CIB) with a complaint against the HyperFund operators. Thapa reportedly lost Rs. 1.95 million, including contributions from his family members, in the scam. He joined the scheme in August 2021 but realized it was a scam in April 2022 when he encountered obstacles to withdrawing funds.

“Withdrawals were suspended, and we realized it was a scam,” Thapa said, referring to his group members. They were initially told their investments were safe until 2025 and that the company was planning the biggest IPO.

Thapa alleged that Nepali national Devi Pokhrel, also known as Roshan Pokhrel, promoted the scheme among Nepalis, promising significant returns, while Lalit Kumar Neupane was one of the masterminds behind the scam. The UK-based networking business has connections globally, and Thapa accused others, including Yogendra Milan Chhantyal and Kumar Gurung, of luring and deceiving Nepalis.

Thapa estimated the total loss suffered by Nepalis globally to exceed Rs 700 billion, resulting in significant mental, social, and economic distress for the victims.

Victims coming together

The victims of the HyperFund operators regularly meet via Zoom to share their experiences, offer support, and resolve to raise public awareness about the scammers’ operations.

Kandel emphasizes the need for cooperation from the Nepal Police and Nepali media to achieve justice. He urges the Nepal Police to investigate all “illegal transactions” from Nepal to other countries, which might be disguised as legal online wallet transfers.

Option for lodging complaint online

Superintendent of Police Hobindra Bogati, the spokesperson and information officer for the Central Investigation Bureau (CIB) of Nepal Police, stated that they have apprehended Nanu Ghimire, aka Kajal, from Lalitpur, accused of orchestrating fraud under the guise of HyperFund.

Scammers reportedly approached victims through Zoom meetings, luring them to invest USD 1,000, promising high returns.

To date, the CIB has received complaints from 56 people, amounting to fraud totaling over USD 79.05 million (USD 79,538,651, equivalent to over 10 billion Nepali rupees).

Bogati mentioned that the HyperFund website would present high ratings, encouraging more people to invest.

Bogati urged victims to lodge complaints to the provided email address featured on the official CIB website. “The CIB has provided an online option for registering complaints,” Bogati said.

According to Bogati, while joining an illegal online business is an offense punishable by law, the Nepal Police assures victims they will not be treated as defendants. “Understanding the circumstances, we acknowledge that the victims were duped into the scam and will not be held liable.”

However, the Nepal Rastra Bank, the central bank regulator, has issued a clear statement declaring all forms of virtual currency, cryptocurrency (including stablecoins), network marketing, and HyperFund are illegal in Nepal, and any kind of transaction, use, involvement, membership, investment, ownership, and mining are subject to legal action.

RSS

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