Kochi Dec 19 (IANS) The Enforcement Directorate (ED), Kochi Zonal Office, has provisionally attached movable and immovable properties worth Rs. 3.78 crore derived out of equivalent to the proceeds of crime generated by various persons namely Muhammed Faisal, Abu Sufiyan and their associates, who were involved in running a Ponzi scheme through ‘My Club Traders’ and cheating gullible investors by promising exorbitant returns.
“The attached properties include agricultural land, residential premises, commercial land with office building constructed over it and bank accounts in the names of Muhammed Faisal, associated persons and companies,” the agency said in a statement issued on Friday.
The ED initiated an investigation based on various FIRs registered by Kerala Police under various sections of the IPC 1860 related to cheating and fraud involving the collection of huge deposits from the public under the pretext of investment opportunities.
The investigation revealed that these persons and their associates used to cheat gullible people by luring them under the pretext of high returns on investments in ‘My Club Traders’.
“They promised impractical returns such as 1 per cent of the invested amount as profits on all working days. It operated as a pyramid-style money circulation scheme falsely presented as legitimate trading in cryptocurrencies and other ventures. They promised 10 per cent binary commission on introducing new investors into the scheme,” the agency said.
“They collected hefty amounts in this scheme from several investors. However, the scheme relied on new investors’ money to pay earlier ones, leading to its collapse and failure to return investments or profits. Throughout the operation, funds were collected in cash mode to evade detection, laundered through shell companies like M/s Princess Gold and Diamonds LLP and M/s Toll Deal Ventures LLP, and used to acquire assets,” read the ED statement.
It further points out that these persons and their associates generated and laundered proceeds of crime by cheating various persons on false pretexts and obtaining large sums from them.
Previously, searches were conducted in this case in June at five locations under the provisions of PMLA, wherein incriminating documents and materials, including diaries with records of cash collections, investor details, financial transactions, and digital devices, were found and seized.
The statement also points out that further investigation is in progress.
–IANS
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