The Directorate of Enforcement (ED) recently conducted search operations in Tamil Nadu, Kerala, and Srinagar as part of an investigation into money laundering related to online investment fraud and fake “Work From Home” scams. The raids, carried out on July 10 and 11 under the Prevention of Money Laundering Act (PMLA), covered 19 locations, including 16 in Tamil Nadu, 2 in Kerala, and 1 in Srinagar. The probe follows criminal cases registered by the Tamil Nadu and Telangana police regarding cyber fraud.
Investigators revealed that victims were enticed into investing money through deceptive online investment platforms and false work-from-home schemes promising high returns. Allegedly, victims transferred nearly Rs 14.95 crore into bank accounts controlled by the accused. The funds were then funneled through various mule accounts and shell companies before being converted into cryptocurrency and moved through digital wallets to obscure their source. Roshan Fiaz has been identified as a key figure involved in laundering the illicit proceeds.
Further findings indicated that Fiaz and his associates managed multiple mule bank accounts under various names, including his wife’s and through different business entities. Some beneficiary bank accounts were reportedly opened shortly before receiving the fraudulent funds and closed after the money was redirected. In one instance, Rs 80,000 from the crime proceeds was transferred to the bank account of R.K. Electrical, an entity linked to Roshan Fiaz.
During the searches, incriminating documents, digital devices, laptops, mobile phones, bank records, company incorporation documents, and records related to shell entities were seized. Details of cryptocurrency wallets and virtual digital assets were also obtained. Cryptocurrency assets worth about Rs 3.35 crore and cash totaling Rs 14.50 lakh were confiscated, with bank accounts holding over Rs 40 lakh frozen. The ED stated that the investigation is ongoing.
