ED arrests Chennai man for Rs 14.5 crore forex fraud

Riyaz is said to be part of an ongoing investigation into the fraudulent high value foreign exchange outward remittances/transactions exceeding Rs 3,500 crore using 57 shell entities’ current account opened at the Armenian Street branch of the Syndicate Bank.

Using assumed names, Muhammed Riyaz had operated an array of accounts at various banks like Syndicate Bank, Ratnakar Bank, Karur Vysya Bank, ICICI Bank, etc., ED officials said.

Detailing the way in which the fraud was done, ED said the suspect would first open a current account in the name of fictitious business entity using fabricated documents. Into these accounts operated in complete anonymity, amounts were later poured from various other accounts maintained on pan India basis through electronic transfer. Fabricated documents were submitted to the banks to make them send foreign exchange outside the country under the guise of advance payments against imports.

Based on cases registered by CBI, Delhi, the directorate conducted investigation into one shell entity and found that Muhammed Riyaz alias Mohmmed Sammy alias Saleem had integrated a sum of Rs 14.5 crore collected from various persons within a short span of two months. Using fabricated documents, all the money was transferred to various business entities in Hong Kong.

The accused is a resident of Choolaimedu. During the arrest, ED recovered multiple identity documents from his house, including PAN cards and driving licences in assumed names.