The company had duped Rs 3.79 billion from 368,710 people both in the country and overseas, offering two illegal “social security” schemes—assurance plan and health plan.

The single bench of Judge Tek Narayan Kunwar has also ordered confiscation of property worth the same amount from the convicts.

Those convicted are ULI Chairman Kashi Ram Gurung, Managing Director Bishnu Chhetri, Finance Director Bhim Bahadur Gurung, Training Director Krishna Chhetri and IT Director Netra Rajbhanshi, Indra Bahadur BK, Krishna Chhetri, Mahendra KC, Shishir Yogi, Lok Bahadur Tandon, Bishwonath Gautam, Ghanashyam Bastakoti and Govinda Gyawali.

Three of the convicts—Bishnu Chhetri, Krishna Chhetri, Gyawali—are still absconding.

The police had filed the case against 112 people associated with the ULI in June 11, 2010 in the Lalitpur District Court. The court has exonerated 17 of those 112 defendants who were already serving jail term. As per the court order, the 17 will be compensated Rs 100,000 from the ULI for each year they served in prison. The government had clamped down on ULI operations declaring its networking marketing business illegal in May, 2010 and scrapped its registration.

Before the government ban, the ULI was running its network business offering two long-term schemes—an assurance plan and travel plan without approval.

Under the assurance plan, it was charging clients Rs 15,000 promising accidental death insurance of Rs 500,000 and insurance coverage of Rs 100,000 for natural death. Under its health plan, the company was charging Rs 15,750 for life-long free health checkups and treatment package at hospitals it operates in 19 districts.

There is another case against the ULI subjudice in the Patan Appellate Court on banking offense. The government probe had concluded that the ULI violated the Bank and Financial Institutions Act, Insurance Act, Securities Act, Cooperatives Act, Foreign Exchange Act, Revenue Leakage (Control) Act and Consumer Rights Protection Act, among others.