The company operated as A1 Health Care Ltd at Maniknagar from 2014 to 2019
A Rapid Action Battalion (RAB) mobile court has detained seven people for allegedly embezzling over Tk40 crore from more than 40,000 people through a Multi-Level Marketing (MLM) scam.
The company in question was originally called A1 Health Care Ltd and the name was later changed to A1 Bazar Public Ltd. It is owned by an individual named Nurul Islam and is totally unauthorized, said RAB 3 Executive Magistrate Palash Kumar Basu.
Several cases are in the process of being filed against the detainees after the raid on Monday afternoon, he added.
The detainees are Managing Director Nurul Islam, Director (Finance) Ferdous Khan, Director (Admin) Rezaul Karim Mintu, Director (Human Resources) Abul Kalam Azad and three other directors.
The company operated as A1 Health Care Ltd at Maniknagar from 2014 to 2019. In this period, 25,000 people registered with it.
“They had a website. If anyone opened an account with them, it was shown on the website. This is how they earned the faith of people,” said Palash.
The organization misappropriated Tk20-25 crore in this period.
At the end of 2017, the company was renamed as A1 Bazar Public Ltd and shifted to Motijheel.
“They showed to the general people that they had sold 47,000 shares to 107 directors and claimed to be a public limited company. They collected money from general people, which was totally illegal,” said the magistrate.
“They promoted themselves as an MLM company, even though they had no license. They would ask for investments and would first provide tea to investors. They do not have BSTI approval,” Palash further said.
“The tea packet had an A1 Health Care label. They told people that it cured cancer. This is how they misappropriated money from 30 thousand people,” he added.
The magistrate also said the proprietors had another business named Bangla City Public Limited, which too was not registered.
The company was launched in 2010 under the name Gateway Company.