In a major breakthrough, the Maharashtra Anti-Terrorism Squad (ATS) has taken a crucial step in unraveling a massive fraud involving an eye-watering sum of ₹712 crores. The investigation has led authorities to seek details from the Hyderabad police regarding the possible linkages of this audacious scam to Mumbai. The Hyderabad police were the ones who first detected the fraudulent scheme, which has now raised serious concerns about its far-reaching implications. An exclusive report regarding the same was published in the Free Press Journal.
Dubai-based Mumbai Residents at the Center of the Fraud
As the Hyderabad police probe deepened, startling revelations emerged, pointing to the involvement of five Mumbai residents who are currently residing in Dubai. These individuals played a central role in converting fraudulently obtained Indian Rupees (INR) to USDT (a type of cryptocurrency) and then transferring the ill-gotten funds to Chinese co-conspirators.
Cryptocurrency Linkages Raise Security Alarms
Officials involved in the investigation noted that some of the crypto-wallet transactions used in the fraud have links to a wallet associated with Hezbollah. This finding has raised alarm bells, as the wallet in question has been labeled as belonging to a terror financing module. The potential connection between the fraud and terrorism financing has escalated the seriousness of the case.
Nine Arrests in Connection to Investment Fraud
The Hyderabad Cyber Crime Police conducted swift and coordinated operations, leading to the arrest of nine individuals involved in the investment fraud. Among those apprehended were Prakash Mulchandbhai Prajapati, Kumar Prajapati, Naimuddin Wahiduddin Shaik, Gagan Kumar Soni, Parveez alias Guddu, Shameer Khan, Mohammed Munawar, Shah Sumair, and Arul Dass. These suspects, hailing from Mumbai, Ahmedabad, and Hyderabad, were implicated in facilitating the elaborate scam.
Modus Operandi: Collaboration with Chinese Nationals
An officer closely associated with the case shed light on the modus operandi employed by the accused individuals. Apparently, the arrested suspects had collaborated with Chinese nationals to exploit easy gains. They offered their bank accounts to the Chinese counterparts for a handsome commission of 2-3%. Additionally, they provided internet login credentials and remote access apps, granting the Chinese co-conspirators the ability to operate these accounts with ease. Once the fraudulent money was collected, the suspects promptly exchanged the INR into USDT (Crypto) and spirited away the ill-gotten gains to China.
Seizure of Assets and Frozen Funds
During the course of the investigation, law enforcement authorities were successful in freezing ₹10.53 crore that had been used by the fraudsters. Furthermore, a significant haul of assets was seized, including 17 mobile phones, 2 laptops, 22 sim cards, 4 debit cards, and various documents related to 33 shell companies. The police also recovered 3 bank cheque books, 12 currency notes, 6 Chinese Yuan coins, and one passport.
Collusion with Mumbai-based Associates
Prajapati's network extended further, as he also collaborated with Mumbai-based associates, including Arif, Anas, Khan Bhai, Piyush, and Sailesh, who had settled in Dubai. Their responsibility revolved around converting the fraudulently obtained INR into USDT (Crypto) and transferring it to the Chinese co-conspirators. The scale of their activities is staggering, with Prajapati providing the Chinese with over 65 accounts for transactions worth ₹128 crores. Additional accounts used in converting the fraudulent money to USDT accounted for a massive volume of ₹584 crores, culminating in the astonishing total of ₹712 crores siphoned off by these cunning fraudsters, according to the officer leading the investigation.
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