New Delhi, June 15 (SocialNews.XYZ) The Directorate of Enforcement (ED) has frozen 129 bank accounts containing balances of Rs 18.4 crore and conducted searches at eight locations across Mumbai, Thane, Bengaluru and Gurugram as part of an ongoing investigation into a large-scale online investment fraud and money laundering case, an official statement said on Monday.
The searches were carried out by the Kolkata zonal office on June 1 and June 4 under the provisions of the Prevention of Money Laundering Act (PMLA). The action targeted several entities, including Payx Digital Payment Pvt. Ltd., Smoothpe Digital Pvt. Ltd., Kinsen Business Solution Pvt. Ltd., Safexpay Technologies Pvt. Ltd. (now known as Touras Tech Global Pvt. Ltd.), Gyan Kuber Ltd. and Decentro Tech Pvt. Ltd.
According to the ED, various incriminating documents and digital devices were seized during the raids and are currently under detailed examination. In addition to freezing bank accounts under Section 17(1A) of the PMLA, the agency has also frozen several lockers linked to the investigation.
The money laundering probe stems from multiple FIRs registered by the Cyber Crime Police Station under the Bidhannagar Police Commissionerate in West Bengal, relating to fraudulent online investment schemes that allegedly duped numerous investors.
Investigators found that victims were lured through social media platforms and WhatsApp groups bearing names such as “Stock Frontline C4” and “Vanguard C7”. The fraudsters allegedly persuaded individuals to invest through mobile applications including CHCSES, ALICE and ESCORTS, promising substantial returns from stock market and IPO investments.
The apps reportedly displayed inflated profits after investors deposited funds, creating the impression of successful investments. However, when investors attempted to withdraw their money, they were allegedly asked to make additional payments under various pretexts, including taxes and processing charges. Many investors ultimately lost substantial sums of money.
The ED's investigation has revealed that the proceeds generated from the cyber fraud were allegedly routed through a complex network of mule accounts, charitable trust accounts and payment gateway companies in an attempt to conceal the origin of the funds.
According to the agency, the transaction trail indicates the receipt of funds from suspected mule accounts, followed by multiple layers of transfers across interconnected entities before being routed through payment gateways. Investigators believe the pattern was designed to disguise and launder the proceeds of crime.
The probe has further uncovered common directors, shared business premises, financial linkages and significant fund transfers among several of the entities under scrutiny, indicating possible coordination in the movement and layering of illicit funds.
The ED said further investigation is underway to identify the beneficiaries, trace the complete money trail and determine the extent of the alleged fraud and money laundering network.
Source: IANS
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