Encounter death uncovers investment scam

A man killed in an alleged police encounter in Gujjarpura late on Thursday night was not only wanted in terrorism-related investigations but had also been running a massive Ponzi-style investment fraud that reportedly swindled hundreds of people over nearly two decades, The Express Tribune has learnt.

The suspect, identified as Ansar Lodhi, also known locally as Ansar alias Khan Baba, was shot dead when unidentified assailants opened fire on an Investigation Police team escorting him to recover explosives in the Ghaziabad area.

Police claimed the fatal shots were fired by his own accomplices in an attempt to help him escape.

Investigators said Lodhi had been wanted in multiple cases involving terrorism, attacks on police, and possession of explosives. However, residents revealed a second side to his operations: Lodhi allegedly ran a "Boli Wali Committee," a fast-money investment scheme that authorities and victims describe as a classic Ponzi setup.

Residents told The Express Tribune that Lodhi had been luring people into the scheme for 15-20 years, promising unusually high returns with minimal risk.

He reportedly expanded the racket by showcasing selective "success stories" of early investors while using money from new entrants to pay the old ones.

"He had been doing this for over 15 years," said Mushtaq, one of the victims. "He would show examples of people who had made money through him. That's how he convinced so many of us."

Mushtaq said suspicions grew when payments were delayed and complaints of default began surfacing. "Before long, everyone realised something was wrong. But by then he had multiplied his and his family's wealth through properties and a luxurious lifestyle," he added.

Police sources estimate the scheme's value at Rs700-800 million, though victims believe the figure may be far higher and involve over 200 people.

Lodhi's activities mirror previous large-scale Ponzi-style scams in Pakistan, from the infamous Double Shah case in the mid-2000s to more recent online frauds such as "NFT Treasure."

"People invested their hard-earned money," Mushtaq said. "Now with Ansar dead, who will return it?"

According to an FIR registered at Ghaziabad police station, Lodhi had earlier attacked a police surveillance team on November 20 near Mohammad Booti Road, firing at officers with SMG rifles alongside accomplices Shehryar and Irfan.

Police recovered a suicide jacket, weapons, and ammunition from the scene, while additional suspects reportedly arrived to help the group flee.

Lodhi was arrested after a two-hour armed standoff. A search of his home later uncovered a petrol-based suicide vest under construction, described by investigators as a "first-of-its-kind" design, intended to ignite using petrol instead of conventional explosives.

Police teams are now tracing the gunmen who attacked the police convoy on Thursday night.

CCTV footage is being analysed to identify the suspects who fled the scene. Officials say multiple teams have been formed to arrest Lodhi's accomplices linked to both the violent attacks and the alleged financial fraud.

Meanwhile, victims of the scheme fear that Lodhi's death has further diminished any hope of recovering their savings.