Mumbai police have opened a new iX Global investment fraud case. Two hundred victims have come forward, reporting losses totaling Rs. 350 million, approximately $4.1 million. This action follows allegations against several individuals and entities involved in the scheme.

The Indian Express reported on September 2nd that Mumbai police booked 25 individuals. These included directors from four associated firms and more than two dozen agents. The suspects allegedly recruited participants for iX Global, promising exceptionally high, quick returns characteristic of investment scams, often marketed through multi-level marketing structures.

Authorities charged iX Global LLC, iX Global Academy Private Limited, Pochale Global Academy Private Limited, and TP Global. The charges named 21 directors and agents spanning Mumbai, the US, Palghar, and Pune.

TP Global operates as an iX Global-connected entity, run by Viraj Patil. The US director named in the charges is presumably Joseph Martinez, founder and CEO of iX Global.

The charges against all involved entities and individuals fall under specific sections of the Indian Penal Code (IPC). These include Section 406 for criminal breach of trust, Section 409 for criminal breach of trust by a public servant, banker, merchant, or agent, Section 420 for cheating, Section 120B for criminal conspiracy, and Section 34 for acts done by several persons in furtherance of common intention. They also face charges under Sections 3 and 4 of the Maharashtra Protection of Interest of Depositors (MPID) Act, which specifically targets financial establishments that fraudulently default on repayments to depositors, aiming to protect public funds from illicit schemes.

This Mumbai warrant for Martinez follows an earlier arrest warrant issued last October by Kolkata police. That warrant also stemmed from an iX Global criminal case, indicating a pattern of alleged fraud across different Indian jurisdictions.

Viraj Patil played a central role in iX Global's recruitment operations across India. Originally based in Mumbai, Patil reportedly relocated to Dubai, continuing to solicit funds from investors in his home country. Indian authorities apprehended Patil in Kolkata in December 2023. He has since been denied bail and remains in custody, facing the ongoing legal proceedings.

Martinez maintains no reported legitimate business ties to India. He is unlikely to travel to the country, thus avoiding apprehension by Indian law enforcement. He recently dissolved iX Global, reportedly due to concerns over potential pending fraud charges by the US Securities and Exchange Commission (SEC). Whether US authorities intend to file criminal charges against Martinez remains unclear.

US investors in iX Global experienced similar fraud through a linked entity called Debt Box. The operational model mirrored that of TP Global in India, funneling investor money into opaque schemes. As of July 2024, three key Debt Box principals, all US nationals, have reportedly also fled to Dubai, a common destination for individuals seeking to evade financial investigations in their home countries.

The ongoing investigation in Mumbai aims to recover funds for the 200 victims and hold those responsible accountable under Indian law, with Viraj Patil currently awaiting trial in Kolkata.