Did ED Conduct Raids on Pyramid Scam Accused in Kerala?
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Synopsis
In a significant crackdown on a pyramid scheme in Kerala, the ED has conducted raids and seized assets worth Rs 2.35 crore. This case highlights the ongoing battle against financial fraud. Stay tuned for details on the investigation and its implications for investors.
Key Takeaways
- The ED seized assets worth Rs 2.35 crore linked to a pyramid scheme.
- Raids were conducted in Malappuram, Kozhikode, and Kasaragod.
- Evidence of cryptocurrency investments was also confiscated.
- The scheme targeted thousands of investors in Kerala.
- Ongoing investigations aim to trace the financial trail.
Thiruvananthapuram, June 5 (NationPress) The Directorate of Enforcement's (ED) Cochin Zonal Office has executed search operations at six sites within the districts of Malappuram, Kozhikode, and Kasaragod in Kerala, linked to a significant investment fraud case, as per an official announcement.
The searches were carried out according to the regulations of the Prevention of Money Laundering Act (PMLA), 2002.
On Wednesday, the raids focused on the residences of primary suspects — Muhammed Faisal, Cheroor Ahammed Jalaluddeen, Abdul Mansheef, Nashid K.P., and Abdul Rasheed — in addition to the premises of Fexmy Mattress LLP, one of the firms allegedly utilized to launder the proceeds from the crime.
The operation resulted in the confiscation of documents pertaining to immovable assets valued at nearly Rs 2.35 crore, registered under the names of the accused and their relatives.
Authorities also seized evidence relating to cryptocurrency investments, incriminating documents, and various digital devices for further forensic examination.
The ED commenced the investigation following multiple FIRs lodged against My Club Traders (MCT), its Managing Director, Faisal, and others under various sections of the Indian Penal Code (IPC) for allegedly deceiving investors through a high-return pyramid-style money circulation scheme.
As reported by the ED, My Club Traders operated a binary pyramid investment scheme falsely marketed as a Malaysian investment opportunity. The scheme attracted thousands of unsuspecting investors, predominantly from Kerala, by promising unrealistic returns. Significant amounts of cash were gathered and later laundered through a network of shell companies, which include Princess Gold and Diamonds LLP, Toll Deal Ventures, and Fexmy Mattress LLP.
Investigators believe that part of the illicit funds was sent out of India and then reintroduced through cryptocurrency transactions and gold investment schemes, such as the “My Gold” program run by Princess Gold and Diamonds LLP.
The ED confirmed that the investigation is ongoing to track the complete extent of the financial trail and uncover additional assets associated with the fraud. More seizures and arrests are anticipated in the upcoming weeks as the investigation continues.
Point of View
The recent actions of the ED highlight the ongoing challenges posed by investment fraud schemes in India. As these operations reveal, the need for enhanced regulatory oversight and investor education is paramount to safeguard the public from such deceptive practices. NationPress remains committed to advocating for transparency and accountability in all financial dealings.
NationPress
08/06/2025
Frequently Asked Questions
What is the pyramid scheme involved in this case?
The pyramid scheme in question is operated by My Club Traders, which falsely presented itself as a high-return investment opportunity, attracting many unsuspecting investors.
What actions has the ED taken so far?
The ED has conducted raids at multiple locations in Kerala, seizing assets worth Rs 2.35 crore and obtaining crucial evidence for their investigation.
How did the scheme operate?
The scheme operated by promising unrealistic profits to investors, collecting large sums of money, and laundering them through a network of shell companies.
Are more arrests expected?
Yes, as the investigation progresses, further seizures and arrests are anticipated.
What should investors know about such schemes?
Investors should be cautious and conduct thorough research before investing, particularly in schemes that promise high returns with little risk.
