A man shot dead during an alleged police encounter in Lahore's Gujjarpura area has been revealed as the mastermind behind a massive, long-running Ponzi-style investment fraud, in addition to his involvement in terrorism-related activities.
A Deadly Encounter and a Double Life
The suspect, Ansar Lodhi, also known as Ansar alias Khan Baba, was killed late on Thursday night. Police reported that unidentified assailants opened fire on an Investigation Police team that was escorting him to recover explosives in the Ghaziabad area. Authorities claim the fatal shots were fired by his own accomplices in a bid to facilitate his escape.
Lodhi was a wanted individual in multiple criminal cases, including terrorism, attacks on police, and possession of explosives. An FIR registered at the Ghaziabad police station details a prior incident on November 20, where Lodhi, along with accomplices Shehryar and Irfan, attacked a police surveillance team near Mohammad Booti Road using SMG rifles. After a two-hour armed standoff, he was arrested.
The Massive Ponzi Scheme Unraveled
Beyond his violent crimes, residents and victims have uncovered a second, lucrative operation run by Lodhi. For an estimated 15 to 20 years, he allegedly operated a fraudulent investment scheme known locally as a "Boli Wali Committee".
This scheme promised unusually high returns with minimal risk, luring in hundreds of people. Lodhi reportedly expanded his racket by showcasing selective success stories of early investors, while using funds from new entrants to pay off older ones, a classic hallmark of a Ponzi scheme.
"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."
Suspicions only grew when payments were delayed and complaints of default began to surface. By the time investors realized something was wrong, Lodhi and his family had already multiplied their wealth, acquiring properties and living a luxurious lifestyle.
While police sources estimate the scheme's value at a staggering Rs 700 to 800 million, victims believe the actual figure is much higher and that over 200 people were involved.
Aftermath and Ongoing Investigations
Following his arrest, a search of Lodhi's home led to the discovery of a petrol-based suicide vest under construction. Investigators described it as a "first-of-its-kind" design intended to ignite using petrol instead of conventional explosives.
Police are now actively tracing the gunmen who attacked the convoy. CCTV footage is being analysed, and multiple teams have been formed to arrest Lodhi's accomplices linked to both the violent attacks and the extensive financial fraud.
Meanwhile, the victims of the Ponzi scheme are left in despair. With the death of Ansar Lodhi, their hopes of recovering their hard-earned savings have diminished further. "People invested their hard-earned money," lamented Mushtaq. "Now with Ansar dead, who will return it?"
