Has the ED seized properties worth Rs 3.78 crore linked to the Kerala Ponzi scam?
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Synopsis
In a significant crackdown, the Enforcement Directorate has provisionally attached properties worth Rs. 3.78 crore linked to individuals involved in a Ponzi scheme in Kerala. This scheme, disguised as a legitimate investment opportunity, duped many investors promising high returns. The investigation is ongoing, highlighting the agency's commitment to tackling financial fraud.
Key Takeaways
- The ED has attached properties worth Rs. 3.78 crore linked to a Ponzi scheme.
- Investors were misled with promises of unrealistic returns.
- The scheme operated under the guise of legitimate trading.
- Authorities are actively investigating to combat financial fraud.
- Vigilance is essential for investors to avoid such schemes.
Kochi, December 19 (NationPress) - The Enforcement Directorate (ED) from the Kochi Zonal Office has provisionally attached both movable and immovable assets valued at Rs. 3.78 crore, which are believed to be derived from the proceeds of crime associated with individuals such as Muhammed Faisal, Abu Sufiyan, and their affiliates. These individuals were implicated in operating a Ponzi scheme through 'My Club Traders', deceiving unsuspecting investors by offering unrealistic returns.
According to a statement released by the agency on Friday, the seized assets comprise agricultural land, residential properties, commercial land with office buildings, and bank accounts registered under the names of Muhammed Faisal, associated individuals, and their companies.
The ED's investigation was prompted by multiple FIRs filed by the Kerala Police under various sections of the IPC 1860, which pertain to cheating and fraud linked to the collection of substantial deposits from the public under the guise of investment opportunities.
The inquiry disclosed that these individuals and their aides used deceptive tactics to lure innocent victims with promises of high investment returns through 'My Club Traders'.
They guaranteed impractical returns, claiming a profit of 1% on the invested amount for every working day. The operation functioned as a pyramid scheme disguised as legitimate trading in cryptocurrencies and other ventures. Furthermore, they offered a 10% binary commission for bringing in new investors.
The scheme attracted significant funds from numerous investors but ultimately relied on money from new investors to pay off earlier participants, which led to its downfall and a failure to return their investments or promised profits. Throughout its operation, cash transactions were made to avoid detection, with funds laundered through shell companies like M/s Princess Gold and Diamonds LLP and M/s Toll Deal Ventures LLP, which were then used to acquire assets.
The ED's statement emphasized that these individuals and their partners generated and laundered proceeds of crime by deceiving various individuals under false pretenses and obtaining substantial amounts from them.
In June, prior searches conducted in this case at five locations under the provisions of the PMLA resulted in the seizure of incriminating documents and items, including diaries documenting cash collections, investor details, financial transactions, and digital devices.
The investigation is still ongoing.
Point of View
It's crucial to highlight the ongoing efforts by authorities to combat financial fraud. This case underscores the need for vigilance among investors and the importance of regulatory oversight in protecting the public from such deceptive schemes. NationPress stands committed to bringing you accurate updates as the investigation progresses.
NationPress
20/12/2025
Frequently Asked Questions
What properties have been seized by the ED?
The Enforcement Directorate has provisionally attached movable and immovable properties worth Rs. 3.78 crore, including agricultural land, residential premises, commercial land with office buildings, and bank accounts.
What was the Ponzi scheme about?
The Ponzi scheme was operated through 'My Club Traders', where investors were promised unrealistic returns on their investments, under the guise of legitimate trading.
Who are the key individuals involved?
Key individuals involved in this scheme include Muhammed Faisal, Abu Sufiyan, and their associates.
What legal actions have been taken?
The ED initiated an investigation based on multiple FIRs filed by the Kerala Police under various sections of the IPC relating to cheating and fraud.
Is the investigation still ongoing?
Yes, the investigation is still ongoing, with further developments expected as more evidence is gathered.
