A major investment scam involving Falcon Invoice Discounting (FID) has left thousands of investors stranded and facing significant financial losses. This peer-to-peer platform promised returns as high as 24%, attracting individuals from various sectors who were enticed by the prospect of quick profits through invoice financing. Unfortunately, many were unaware they were stepping onto shaky ground.
The trouble began when Falcon began defaulting on payments around mid-January 2023, leading to alarmed investors rushing to the company's office, only to find it abruptly closed on February 10. Many investors, like Prakash, who invested over ₹3.5 crore—his entire life savings including retirement funds—are now regretting their decisions. "I could repay the credit card before the payment due date because my previous deal would get redeemed," he shared, highlighting the precarious positioning of many who depended on timely returns.
Investments varied widely among those affected. A North Indian doctor stated, "The maximum I invested was ₹2 lakh, so thankfully I did not lose too much money. But my cousin, who I referred to the app, invested over ₹50 lakh." Others, such as Utkarsh, a young techie, invested ₹15 lakh after his in-laws recommended Falcon. "I did not suspect any foul play," he lamented, unaware of the trouble brewing underneath the surface.
Falcon capitalized on investors' greed by offering short-term deals with luring interest rates, ranging from 11% to above 24%. While these opportunities attracted newcomers, they overlooked significant red flags. Some agreements signed were questionable, with legal experts categorizing them as invalid and potentially indicative of fraudulent intent. Corporate lawyer Hirendernath described one of these agreements as "a sham with absolutely no legal validity. It appears to be a Ponzi scheme," substantiations fears among investors.
The investment loss didn't just apply to small investors but also those who heavily invested based on trust and initial positive experiences. "The payments were coming on time every time, so I kept investing bigger amounts... but got trapped," acknowledged another investor from Bengaluru who lost over ₹3 crore. The sentiment of being blindsided by greed was echoed among many who kept pouring money, believing their investments were secure.
Following the onset of payment defaults, those who rushed to find resolutions discovered their worst fears confirmed when they found Falcon's offices shut tight with no communication. Hard evidence detailing the scam was reportedly missing from the site, raising suspicions about deliberate attempts to conceal fraudulent activities. Meanwhile, police investigations have confirmed multiple criminal cases against the company's management, with Amardeep Kumar and others now on the run, reported to have fled to Dubai.
The Cyberabad police have been proactive, filing requests with banks to freeze Falcon’s accounts to prevent any more transactions. Their investigations also led them to discover the troubling trend of financial distress felt by many investors across the country—especially from states including Andhra Pradesh and Telangana. An investor from Rohtak, who lost ₹19 lakh, noted, "I learned about Falcon through family members and have lost everything I invested. This is devastating for me and my family."
The impact of this scam stretches beyond monetary losses; it has resulted in panic and anxiety among investors who are now trapped without immediate resolution or means to recover their funds. A growing community of affected individuals has emerged on social media, creating groups to share experiences and seek collective justice. One of the pivotal concerns is the lack of immediate complaints filed prior to the management's escape; had investors acted sooner, it’s speculated many losses could have been avoided.
Facing growing pressure from investors initially, the management of Falcon advised employees to work from home days prior to shutting down, displaying signs of calculated evasion. The urgency now rests on the police, who are not only working diligently to track down the absconding executives, but they're also urging other affected investors to come forward and file complaints.
This situation serves as a serious warning to potential investors about the dangers of high-return promises, particularly without due diligence and careful scrutiny of investment platforms. The Falcon Invoice Discounting scam is not just about financial losses but the deep trust betrayed among those who sought to secure their futures. With many still hoping for the recovery of their investments, the fight for justice and accountability continues.