CHENNAI: The Chennai zonal office of the Directorate of Enforcement (ED) has conducted search operations at 16 locations in Tamil Nadu, and two locations in Kerala and in Srinagar on Friday and Saturday in connection with an ongoing money laundering investigation relating to cyber frauds, resulting in seizures of documents, cash and cryptocurrency assets.
The enforcement agency initiated the investigations based on the cases registered by the Tamil Nadu police and Telangana police against cyber scammers, who cheated gullible public through "fake investment platforms" and "work from home" ploys.
The ED investigation revealed that the complainants transferred Rs 14.95 crore into various bank accounts controlled by the accused persons. The funds were immediately layered through multiple mule bank accounts and shell entities before being converted into cryptocurrency and further transferred through multiple crypto wallets to conceal their origin and ownership.
Investigation further revealed that Roshan Fiaz is one of the principal persons involved in laundering the proceeds of crime. He, along with his associates, allegedly operated and controlled multiple mule bank accounts in his name, his wife's name, and through various shell entities, including M/s Wingsonwings Technology Pvt Ltd, M/s Trading Wheels Pvt Ltd, and Garnet Management Consulting.
Several accounts receiving the defrauded funds were mule accounts that were opened shortly before receipt of the funds and subsequently closed after the amount transfer, the ED stated.
Investigations revealed that Rs 80,000 out of the proceeds of crime was transferred to the bank account of M/s RK Electrical Prop, belonging to Eshak Sharif, an entity associated with Roshan Fiaz.
The tainted funds were routed via several business entities and associated persons, including RK Electrical, Balmani Oil Store & Agency, JK Footwear, Team Well Engineering and others, for layering and integration of the proceeds of crime. Scrutiny of the bank account of Luban Parvez, an accused in a 2022 case, revealed transfer of more than Rs 45 lakh to the bank account of Roshan Fiaz.
During the searches, several incriminating documents and digital devices relating to shell entities were seized.
Details relating to cryptocurrency wallets, virtual digital assets, crypto exchange accounts, recovery phrases and other digital evidence connected with cryptocurrency transactions were also found and secured.
Cryptocurrency assets valued at approximately Rs 3.35 crore and cash amounting to Rs 14.50 lakh have been identified and seized, an official release stated.
Several bank accounts in the name of the accused and its associated entities amounting to more than Rs 40 lakh have been frozen.