Rs 850 Cr of AV Solutions scam exposed, 2 held in Hyderabad: 3,100 investors cheated in AI stock fraud

Hyderabad: The Cyberabad Police have busted a massive financial fraud network that duped over 3,100 people across several states by promising high returns through fake AI-powered stock trading platforms.

The racket, which operated between 2022 and 2025, amassed more than Rs 850 crore before being dismantled.

Key arrests

Police arrested Gaddam Venugopal, Director of AV Solutions and Srinivas Analytical, a resident of Manikonda, and Shreyas Paul, an employee of AV Solutions from Ballari, Karnataka. Both were taken into custody in Hyderabad on August 19.

Investigations revealed that the duo was supported by over 20 consultants, technical developers and website administrators who operated from multiple cities.

Fraudulent companies and websites

The accused ran operations through shell companies such as IIT Capital Technologies, AV Solutions, Srinivas Analytics, and Trade Bulls Technology.

To lure investors, they floated fake websites including www.iitstockmarket.com, www.myshareprofit.com, www.tradeonnumbers.com, www.smalgo.com, and others. These websites projected bogus credentials and stock market certifications to appear legitimate.

Modus Operandi

The fraudsters created a façade of credibility by displaying fake SEBI, NSE, and BSE registration numbers and organising investment seminars in Andhra Pradesh and Telangana. They maintained premium office spaces to further strengthen their image of trust.

Their target group included middle-class families, retirees and salaried professionals. Victims were recruited largely through referrals, with the accused using psychological tactics to exploit their financial insecurities.

Victims lured in with AI-based stock predictions

Investors were promised 7 per cent monthly returns (84% annually) on the back of so-called “AI-based stock predictions.” Fake dashboards showed fabricated profits, while actual operations followed a Ponzi model. Part of the money was paid back to early investors, while the rest was siphoned off into real estate, gold, and luxury cars.

The racket spread its tentacles across multiple states, operating through 21 mule bank accounts in ICICI, HDFC, Axis, Kotak Mahindra, and IndusInd. The accused also routed funds through Dubai-based channels to launder money internationally.

Scale of operations

According to police, the network defrauded 3,164 investors, collecting Rs 850.59 crore. Of this, Rs 618.23 crore was recycled as partial returns to maintain credibility, while Rs 232.36 crore was retained by the accused.

Breakdown of the fraud:

AV Solutions (Venugopal): 2,388 victims cheated of Rs 441.52 crore; retention Rs 104.36 crore.

IIT Capital Technologies (Venkata Rao): 776 victims cheated of Rs 409.07 crore; retention Rs 128 crore.

Seized property and evidence

During the raids, police seized a Toyota Fortuner (TG 07 AE 4466), a BMW (TS 07 KK 0777), 11 laptops, three mobile phones, backend trading access, a database of 3,164 investors, 14 cheque books, 30 promissory notes worth Rs 3.37 crore, and benami property documents.

Flats at Manikonda and Happy Homes were also identified as proceeds of crime.

Toll on victims

Police said hundreds of families have been left devastated. Many victims lost their retirement savings and children’s education funds, forcing some into debt and bankruptcy. Several continue to face severe psychological distress after falling prey to the fraudulent scheme.

Public advisory

Cyberabad Police urged citizens to be cautious about investment offers promising unusually high returns. Warning signs include:

Unrealistic monthly returns of more than 2–3%.

Fake SEBI/NSE/BSE credentials.

Pressure for immediate investment.

Requests to transfer funds into personal accounts.

Delayed or denied withdrawals.

Authorities advised verifying SEBI and MCA registrations online and physically checking office premises before investing.

Emergency contacts