ED conducts raids in TN, Kerala in Rs 14.95 cr online fraud money laundering probe

Chennai, July 13 (IANS) The Directorate of Enforcement (ED) has conducted extensive search operations across Tamil Nadu, Kerala, and Srinagar as part of an ongoing money-laundering investigation linked to online investment fraud and fake “Work From Home” scams.

The ED, in a statement, said the raids were carried out on July 10 and 11 under the Prevention of Money Laundering Act (PMLA), covering 19 locations, including 16 in Tamil Nadu, 2 in Kerala, and 1 in Srinagar. The investigation stems from two criminal cases registered by the Tamil Nadu and Telangana police relating to cyber fraud.

According to the ED, unsuspecting victims were lured into investing money through fraudulent online investment platforms and fake work-from-home schemes that promised high returns and commissions. As a result, victims allegedly transferred nearly Rs 14.95 crore into bank accounts controlled by the accused.

Investigators said the funds were subsequently routed through multiple mule accounts and shell companies before being converted into cryptocurrency and transferred through several digital wallets to conceal their origin. The ED has identified Roshan Fiaz as one of the principal persons allegedly involved in laundering the proceeds of crime.

Investigators said he and his associates operated multiple mule bank accounts in their own names, in his wife’s name, and through several business entities. Several of the beneficiary bank accounts were allegedly opened shortly before receiving the fraudulent funds and closed after the money was transferred elsewhere.

The probe further revealed that Rs 80,000 from the proceeds of crime in one of the FIRs was transferred to the bank account of R.K. Electrical, an entity allegedly linked to Roshan Fiaz. The ED also found that funds were routed through multiple business establishments as part of the alleged layering process.

In a separate case, more than Rs 45 lakh was reportedly transferred from the bank account of another accused to Roshan Fiaz. During the searches, the ED seized incriminating documents, digital devices, laptops, mobile phones, bank records, company incorporation documents and records relating to shell entities.

Investigators also secured details of cryptocurrency wallets and virtual digital assets. Cryptocurrency assets worth about Rs 3.35 crore and cash amounting to Rs 14.50 lakh were seized, while bank accounts holding more than Rs 40 lakh were frozen. The agency said further investigation is in progress.

–IANS

aal/dan