Hyderabad: The city police here arrested ten persons including a Chinese and a Taiwan national for allegedly cheating lakhs of persons to the tune of Rupees 903 crore. So far Rs 1.91 crores have been frozen in various bank accounts in this case. Eight Indians facilitated the scam by providing bank accounts and helping transfer money to a foreign country, said commissioner CV Anand.
The Hyderabad police commissioner opined that it could even be a Rs 10,000 crore scam, which was run through a network of Indian and foreign accounts to route money of unsuspecting investors away.
The accused fraudsters were running the Hawala scam from Bombay and Delhi. They were arrested by the Hyderabad police’s Cyber Crime officials. They have been identified as: Sahil Bajaj, Sunny aka Pankaj, Virender Singh, Sanjay Yadav, Navneeth Kaushik, Mohammad Parvez (from Hyderabad), Syed Sultan (from Hyderabad), Mirza Nadeem Baig (from Hyderabad), Chinese national Lec aka Li Zhongjun and, Chu Chun-yu (Taiwan national).
How it happened:
The Hyderabad police was alerted about the massive investment scam after a complianant approached the Cyber Crime officials. The complainant said that he was cheated after investing 1.6 lakh rupees in an investment app called LOXAM. “On investigation it is found that the money of the complainant was deposited in the bank account of Indus Ind Bank in the name of Xindai Technologies Pvt Ltd,” said Anand.
He explained that this bank account was opened by Virender Singh in the name of Xindai Technologies Pvt Ltd. When Virender Singh was arrested and interrogated in Pune, he revealed that he opened a bank account in the name of Xindai Technologies Pvt Ltd on the orders of a Chinese man named Jack. The internet banking user name and password of the bank account were also given to Jack.
During investigation, the Hyderabad police found that the bank account of Betench Networks Pvt Ltd, and Xindai Technologies Pvt Ltd share the same phone number. Sanjay Kumar of Delhi had opened the account of Betench on the instructions of Lec (Li Zhounjau) and gave it to Pei and Huan Zhuan in China. Similarly, he opened 15 other bank accounts and sent them to one Chu Chun-yu of Taiwan who is temporarily residing in Mumbai and was arrested yesterday in Mumbai.
Chu Chun-yu sends account details, User ID, password and SIM cards to other countries. Sanjay Yadav and Virender Rathor received Rs.1.2 lakhs commission per account which was arranged by Lec. Money was transferred from the account of Xindai Technologies Pvt Ltd to 38 other bank accounts. It also went to the bank accounts of Hyderabad-based Syed Sultan and Mirza Nadeem Baig.
Mirza Nadeem Baig and Syed Sultan opened bank current accounts on a commission on instructions from Parvez, who in turn gave those bank accounts to Imran who resides in Dubai. Imran along with others used these two bank accounts for investment frauds, said the Hyderabad police. A large amount of money from the 38 accounts of Xindai Technologies Pvt Ltd went to Ranjan Money Corp and KDS Forext Pvt Ltd.
Navneet Kaushik in turn sends the money received in the bank account to the Forex exchanges run in the name of International Tours and Travels. He converted the money received in rupees to US dollars in cash and gave it to Sahil and Sunny. The money changers and Forex Exchanges are licensed by RBI, said the Hyderabad police.
However, they repeatedly flouted the guidelines laid down by RBI regarding money changing activities, said Anand. He added that Sahil and Sunny aka Pankaj, joined hands with other fraudsters and transferred the above money abroad through hawala. Transactions amounting to Rs 441 crore were sent to the account of Ranjan Money Corp Pvt Ltd in a period of 7 months. Another 462 crore rupees transactions were done in KDS Forex Pvt Ltd account.