ED conducts raids in Tamil Nadu, Kerala in ‘dream makers’ global money laundering case
Chennai, July 2 (IANS) The Directorate of Enforcement (ED) on Thursday said it had conducted searches at eight locations across Tamil Nadu and Kerala in connection with a money laundering investigation against M/s Dream Makers Global Pvt. Ltd. (DMGPL), which is accused of operating a multi-level marketing (MLM) and Ponzi scheme that allegedly cheated thousands of investors by promising exorbitant returns on investments.
The searches were conducted under the provisions of the Prevention of Money Laundering Act (PMLA), 2002.
In a statement issued on Thursday, the ED said the searches were carried out on June 30 at premises linked to the company in Coimbatore and Krishnagiri districts of Tamil Nadu, and Malappuram and Thrissur districts of Kerala.
The agency said it had launched the money laundering investigation based on a First Information Report (FIR) registered by the Economic Offences Wing of the Tamil Nadu Police for offences under various sections of the Indian Penal Code, which are scheduled offences under the PMLA.
According to the ED, Dream Makers Global Pvt. Ltd. and its key managerial personnel allegedly mobilised hundreds of crores of rupees from the public by offering investment opportunities in software-related projects and packages. Investors were allegedly lured with promises of high daily returns and assurances that their investments would double within 150 days.
The agency said returns were initially paid to create confidence among investors and attract more deposits. However, the company allegedly defaulted on subsequent payments, resulting in heavy financial losses for thousands of depositors across the region.
The ED alleged that the company’s late Managing Director S. Sathish Kumar, Director Gunavathy and manager Mugunthan Nair played key roles in the operation of the scheme.
It said Gunavathy and her husband Sathish Kumar jointly managed the company and collected deposits from the public, while Mugunthan Nair allegedly organised promotional meetings and persuaded people to invest by making false promises of assured returns.
The agency further said that large sums received as commissions and investment proceeds were allegedly diverted to acquire immovable properties, vehicles and other personal assets.
During the searches, officials recovered and seized incriminating documents, diaries, digital records and details of properties allegedly purchased using the proceeds of crime.
Bank accounts, fixed deposits and other financial instruments linked to the accused and their associates have also been identified, many of which had already been frozen by other law enforcement agencies.
The ED said further investigation into the money laundering case is in progress.
–IANS
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