Has the ED Arrested the COO of Capital Protection Force in a Rs 792 Crore Ponzi Scheme?

Hyderabad, Sep 3 (NationPress) The Enforcement Directorate (ED) has taken into custody Aryan Singh, the Chief Operating Officer of Capital Protection Force Pvt Ltd, in relation to a staggering Rs 792 crore Ponzi scheme masquerading as an invoice discounting platform.

The ED from its Hyderabad Zonal Office apprehended the accused under the Prevention of Money Laundering Act (PMLA), 2002, as part of an ongoing inquiry involving Capital Protection Force, Amardeep Kumar, and others.

Aryan Singh was subsequently presented before the Special PMLA Court, which placed him in 14 days of judicial custody.

According to a statement released by the ED on Wednesday, they commenced an investigation based on three FIRs filed by the Economic Offence Wing, Cyberabad. These FIRs alleged that Amardeep Kumar, Capital Protection Force, and others swindled unsuspecting investors under the guise of high investment returns.

The investigation disclosed that Capital Protection Force, under the name of the 'Falcon invoice discounting scheme', attracted investors by promising returns tied to discounted invoices, but ultimately failed to repay any invested sums.

As per the statement, Amardeep Kumar was identified as the principal orchestrator of the scam, having developed the Falcon invoice app to collect deposits from investors. The ED's investigation found that no authentic invoice discounting business had taken place, resulting in a colossal fraud of approximately Rs 792 crore.

Furthermore, the inquiry revealed that Aryan Singh, in his role as COO of Capital Protection Force, was actively involved in managing the deceptive 'Falcon Invoice Discounting' scheme in collaboration with the mastermind, Amardeep Kumar. Despite being fully aware that no legitimate business operations were occurring, he continuously enticed unsuspecting investors.

Aryan Singh also led a team of employees who not only promoted the fraudulent venture but also engaged with investors to build their trust. He assisted Amardeep Kumar in diverting the invested funds and personally profited by receiving Proceeds of Crime amounting to Rs 2.88 crore across five of his personal bank accounts, in addition to the account of his entity, Karaoi (OPC).

Earlier, the ED had confiscated a Hawker 800 A aircraft in connection with this case, along with attaching movable and immovable assets worth Rs 18.14 crore. They have also arrested Sandeep Kumar (the brother of main accused Amardeep Kumar) and Shard Chandra Toshniwal, a Chartered Accountant. The investigation is ongoing, the agency noted.