Latest news with #Prozorov
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Business Standard
a day ago
- Business
- Business Standard
ED attaches luxury yacht, properties in Spain in case against OctaFX
The Enforcement Directorate (ED) has attached offshore assets valued at ₹131.4 crore in its investigation against forex trading platform OctaFX. These include a luxury yacht named Cherry and two high-end residential properties located in Spain. According to a News18 report, "Cherry", the luxury yacht, is an Italian commercial yacht cruising in the Western Mediterranean. The report suggests that these assets belong to Pavel Prozorov, a Russian national, allegedly the mastermind behind OctaFX, which was once promoted through the Indian Premier League (IPL) ad campaigns and was endorsed by celebrities. This is the second instance when the offshore properties have been attached in this case. Previously, the probing agency attached 19 properties in Spain and other assets worth ₹296 crore. The case also marks ED's second offshore attachment in a money laundering case, the first involved properties in Dubai, the report added, citing sources. Case details ED said that in just nine months, the trading platform reportedly generated ₹800 crore in illicit proceeds by scamming thousands of Indian investors. Disguising itself as a legitimate forex broker, the platform lured victims with advertisements on social media, according to the News18 report. The agency claimed that OctaFX manipulated trades behind the scenes and diverted investor funds through mule accounts. The funds were allegedly transferred overseas using fake import invoices, shell e-commerce firms, dummy directors, and several unauthorised payment gateways. In a statement, the ED said, "The directorate initiated an investigation based on an FIR registered by Shivaji Nagar PS, Pune, against several individuals for defrauding investors by falsely promising high returns through the OctaFX forex trading platform. And the investigation revealed that OctaFX, an unauthorised forex broker promoted via IPL, social media, and celebrities, laundered funds by collecting investor money through mule accounts in the names of fake e-commerce firms." The investigation further revealed a web of dummy directors, shell companies, and bank accounts hidden under forged Know Your Customer (KYC). According to the ED, the diverted money was routed to companies linked to Prozorov across multiple regions, including Europe, Asia, and the Middle East. The network of transactions spanned jurisdictions such as Estonia, Russia, Hong Kong, the UAE, the UK, and Singapore. The report reveals that Spain became Prozorov's haven, where he was investing the money laundered into a lavish lifestyle, including properties, which have now been attached by the central agency. The special court under the Prevention of Money Laundering Act (PMLA) has taken cognisance in connection with this case. Citing an official, the report added that two complaints have already been filed against OctaFX and 54 others.
Indian Express
a day ago
- Business
- Indian Express
Rs 800 cr OctaFx illegal forex trading case: Luxury yacht, a minijet boat, two residential buildings among mastermind's properties worth Rs 131 crore attached by ED
The Mumbai unit of the Enforcement Directorate (ED) has provisionally attached properties worth Rs 131.45 crore in Spain belonging to the mastermind behind a multi-crore illegal forex trading platform. The mastermind of the illegal trading platform, OctaFx, was identified as Pavel Prozorov. The agency Thursday stated that assets they provisionally attached include movable properties like a luxury yacht, a minijet boat, a luxury car, and immovable properties in the form of two residential buildings in Spain. The luxury yacht is an Italian commercial model. ED's money-laundering case is based on a First Incident Report (FIR) registered by the Shivaji Nagar police station in Pune against several individuals for allegedly defrauding investors by falsely promising high returns through the OctaFX forex trading platform. During the probe, the central agency found that OctaFX is an unauthorised forex broker promoted via the Indian Premier League, social media, and by celebrities. It laundered funds by collecting investor money through mule accounts in the names of fake e-commerce firms. These shell firms, with dummy directors and manipulated KYCs, accessed payment gateways posing as legitimate merchants. Funds were routed through unauthorised payment aggregators and escrow accounts, adding layers to obscure ownership and transaction purpose, ED said in a statement. ED added that OctaFX deliberately changed its login URLs and web addresses to obscure its fraudulent operations from investors. The platform manipulated trades to cause significant investor losses while siphoning funds into e-wallets and accounts of fictitious entities. The anti-money laundering agency's investigation also revealed that proceeds of crime to the tune of at least Rs 800 crore were generated by OctaFX from its operations in India in just nine months. Funds stolen from the investors were siphoned out of India in the guise of fake import of services to entities controlled by Prozorov across Spain, Estonia, Russia, Hong Kong, Singapore, the UAE, and the UK, the central agency claimed. ED has so far seized and attached assets worth more than Rs 296 crore, including 19 properties in Spain owned by Pavel Prozorov. Two prosecution complaints (equivalent to charge sheets) have been filed against OctaFX and 54 other accused. Never made false promises of high returns: OctaFx Reacting to ED's action, OctaFx released a statement denying all the allegations levelled against the company. OctaFx stated, 'As a broker aiming to educate traders and raise their financial awareness, Octa strongly denies any allegations of making false promises of high returns, quick riches, or guaranteed profits. We also don't engage in any practices that disadvantage traders. Instead, we consistently emphasise that Forex trading requires a knowledgeable and conscious approach. To support our clients in adapting this approach and making informed decisions, we provide comprehensive educational resources, which are publicly available on our website, YouTube channel, and app.' The statement further said, 'In our global operations, we are guided by the interests of our clients while implementing and developing settlement infrastructure. Like most global brokers, we work with various payment systems and service providers. While we integrate these providers for the convenience of our users, it's important to highlight that we do not control or interfere with their interactions with end-users. 'We strongly reject any claims that we mask payment gateway identities. URLs used in our payment integrations are part of the standard technical setup used by payment service providers, and usually, we are not involved in their construction. Based on the warranties of payment service providers, it is in line with applicable regulations. We aim to ensure that once customers select a payment method, they are redirected to the provider's official payment page, where their identity is clearly visible. The process is straightforward and follows typical industry practices.'
The Print
a day ago
- Business
- The Print
Rs 55 cr yacht, minijet boat, Mercedes SUV among assets of OctaFX ‘mastermind' in Spain attached by ED
ED's investigation began in 2022, based on a case filed by Pune Police, which involved small-time investors who had complained of large-scale cheating through the application. Pavel Prozorov has been identified and charged by the federal probe agency in the money laundering case. The agency has issued attachment orders for a minijet boat, a Mercedes-Benz EQV 300 Long SUV, and two residential properties in the European country. New Delhi: The Enforcement Directorate has attached immovable properties in Spain, including a luxury yacht worth approximately Rs 55 crore, owned by the alleged mastermind behind Rs 900 crore fraud linked to forex trading platform OctaFX. The probe revealed that the system was always stacked against investors, as the individuals running the OctaFX operations manipulated transactions through financial tactics, including frequent slippage and excessive leverage. Later, the agency allegedly found that money defrauded from investors was routed from the primary account to several e-wallets or accounts, opened using fake documents or dummy entities during the initial process of layering illicit money. The agency has alleged that OctaFX generated proceeds of crime to the tune of at least Rs 800 crore from its operations in India in just nine months. These funds were siphoned out of India in the guise of fake import of services to entities controlled by Prozorov across Spain, Estonia, Russia, Hong Kong, Singapore, the UAE, and the UK. To make their operations appear more genuine, app promoters also established more than 30 dummy e-commerce sites, such as Miracantoy Creative, Bee Fintech Pay (OPC), and Razgoy Global, to create 'parallel evidence' in compliance with Reserve Bank of India (RBI) norms for firms dealing with the inflow and outflow of funds. 'Prozorov's exploitation of regulatory loopholes and the establishment of dummy entities in India exemplify his calculated approach to financial deception. He utilised these entities to manipulate records, allowing funds to be transferred overseas without raising suspicion. Additionally, Mr. Prozorov directed substantial promotional campaigns targeting Indian investors, including celebrity endorsements and sponsorships, further embedding OctaFX in the market,' the agency had alleged in the prosecution complaint filed in December last year. 'His actions constituted careful layering, placement, and integration of laundered funds as Foreign Direct Investment (FDI), misrepresenting their origins. Despite multiple summonses from the ED, Prozorov evaded compliance, indicating deliberate obstruction of legal processes. His direct involvement in establishing a complex web of entities and orchestrating financial flows clearly covered by Section 3 of the PMLA (Prevention of Money Laundering Act), as he engaged in the concealment, possession, acquisition, and use of proceeds of crime. He is also liable for punishment under Section 4 of the PMLA for his role in facilitating large-scale financial fraud and evading regulatory oversight,' it had further said. The OctaFX team rejected ED's allegations, saying that it has been following regulations on payment service providers and typical industry practices. 'We strongly reject any claims that we mask payment gateway identities. URLs used in our payment integrations are part of the standard technical setup used by payment service providers, and usually, we are not involved in their construction. Based on the warranties of payment service providers, it is in line with applicable regulations,' the OctaFX team said in a statement to ThePrint. 'We aim to ensure that once customers select a payment method, they are redirected to the provider's official payment page, where their identity is clearly visible. The process is straightforward and follows typical industry practices.' (Edited by Mannat Chugh) Also Read: How a Pune investor's complaint blew lid off 'Rs 900-cr' fraud linked to OctaFx forex trading platform
Hindustan Times
a day ago
- Business
- Hindustan Times
ED attaches assets worth ₹131 crore in Spain including a yacht in OctaFX probe
The Enforcement Directorate (ED) has attached a luxury yacht, two houses and other assets worth ₹131 crore in Spain under the prevention of money laundering act (PMLA) in its probe against a fraud forex-trading platform - OctaFX - that allegedly cheated numerous investors, agency said on Thursday. The yacht, named 'Cherry', is an Italian-model commercial vessel cruising in the western Mediterranean. (HT sourced picture) 'These assets belong to Pavel Prozorov, the mastermind behind OctaFX,' the agency said in a statement. 'A provisional attachment order has been issued under the PMLA to attach a luxury yacht, a minijet boat, a costly car and two residential properties in Spain. These are worth ₹131.45 crore,' the ED said. The yacht, named 'Cherry', is an Italian-model commercial vessel cruising in the western Mediterranean, it added. ED's probe stems from a case by the Pune Police (Shivaji Nagar police station) against several individuals on charges of defrauding investors by falsely promising high returns through the OctaFX forex-trading platform. OctaFX, the ED said, is an unauthorised forex broker promoted via the Indian Premiere League (IPL) cricket tournament, social media and celebrities, and it laundered funds by collecting investors' money through mule accounts in the names of fake e-commerce firms. 'These shell (bogus) firms, with dummy directors and manipulated KYCs, accessed payment gateways posing as legitimate merchants. It was detected that funds were routed through unauthorised payment aggregators and escrow accounts, adding layers to obscure ownership and the transaction purpose,' the agency said. OctaFX deliberately changed its login URLs and web addresses to obscure its fraudulent operations from investors. The platform manipulated trades to cause significant investor losses while siphoning funds into e-wallets and accounts of fictitious entities, it added. Also Read: Russian national handled OctaFX global forex operations: ED The agency statement further said that the platform is suspected to have generated proceeds of crime worth ₹800 crore from its operations in India in just nine months. The agency suspects that funds cheated from the investors were siphoned out of India in the guise of fake import of services to entities controlled by Prozorov in countries like Spain, Estonia, Russia, Hong Kong, Singapore, the UAE and the UK. It had earlier attached assets worth ₹296 crore, including 19 properties in Spain owned by Prozorov. It has filed two chargesheets in the case till now, naming OctaFX and 54 other entities as accused. Reacting to the developments, OctaFX released a statement. 'As a broker aiming to educate traders and raise their financial awareness, Octa strongly denies any allegations of making false promises of high returns, quick riches, or guaranteed profits. We also don't engage in any practices that disadvantage traders. Instead, we consistently emphasise that Forex trading requires a knowledgeable and conscious approach. To support our clients in adapting this approach and making informed decisions, we provide comprehensive educational resources, which are publicly available on our website, YouTube channel, and app', the statement said. 'In our global operations, we are guided by the interests of our clients while implementing and developing settlement infrastructure. Like most global brokers, we work with various payment systems and service providers. While we integrate these providers for the convenience of our users, it's important to highlight that we do not control or interfere with their interactions with end-users', it added. 'We strongly reject any claims that we mask payment gateway identities. URLs used in our payment integrations are part of the standard technical setup used by payment service providers, and usually, we are not involved in their construction. Based on the warranties of payment service providers, it is in line with applicable regulations. We aim to ensure that once customers select a payment method, they are redirected to the provider's official payment page, where their identity is clearly visible. The process is straightforward and follows typical industry practices', the statement said.
India.com
2 days ago
- Business
- India.com
Cherry Yacht, Spanish Villas And Rs 800 Crore Vanish: Inside EDs OctaFX Crackdown
New Delhi: A luxury yacht gliding through the Mediterranean. Two sun-drenched homes on Spain's coastline. A shiny minijet boat. And a man named Pavel Prozorov. That is the story unfolding as the Enforcement Directorate (ED) dives deep into a massive forex scam involving the controversial platform OctaFX. On July 3, the agency confirmed it had attached foreign assets worth Rs 131.45 crore belonging to Prozorov, who is believed to have masterminded the operation. Cherry Yacht and a Fake Empire The centrepiece? A gleaming Italian-model vessel called Cherry. It is not merely a yacht; it is a floating symbol of how deep the alleged scam goes. Docked in the western Mediterranean, it was just one part of an elaborate maze of offshore luxury bought with money the ED says was stolen from Indian investors. The platform behind this? OctaFX. Marketed through celebrity endorsements, cricket tournaments and viral social media ads, OctaFX promised high returns on forex trading. But beneath that shiny exterior, the ED says, was a dark money-laundering engine. How the Scam Worked It started with promises – get-rich-quick schemes, flashy ads and high-return guarantees. But the real strategy, according to the ED, was deception. The platform allegedly used mule accounts to receive funds. These were set up in the names of fake e-commerce businesses. Behind them stood shell companies, false directors and manipulated KYC documents. These firms used payment gateways to disguise themselves as legit online merchants. Once the money landed, it vanished. Layer after layer. From India to Europe to Asia. Investigators found funds had been laundered through unauthorised aggregators, bogus service imports and offshore entities. A complex web designed to blur ownership and bury trails. Digital Tricks, Disappearing URLs OctaFX kept changing its login URLs. Web addresses shifted frequently. The goal was to stay one step ahead. Many investors, left in the dark, struggled to track their own money. Trade data was reportedly manipulated. Losses were engineered. Profits faked. The money, investigators believe, flowed into e-wallets and bank accounts operated by fictitious names controlled by Prozorov and his global network. According to the ED, in just nine months, OctaFX generated criminal proceeds worth at least Rs 800 crore from operations within India alone. Bigger Than Cherry The Rs 131 crore seizure is not the agency's first move. In earlier action, assets worth Rs 296 crore were frozen. That included 19 properties – also in Spain – linked to Prozorov. The total suspected fraud may be far higher. Funds were allegedly moved under the pretense of service imports to entities spread across Spain, Estonia, Russia, Hong Kong, Singapore, the United Arab Emirates and the United Kingdom. Each one, according to investigators, tied back to the same man. The ED has already filed two chargesheets. OctaFX and 54 other entities stand accused. The trail now runs through more than one continent.
