Latest news with #TorresPonzi
Indian Express
3 days ago
- Business
- Indian Express
Rs 177 Cr Torres Fraud: ‘Whistleblower' for EOW is a key accused for ED
The investigations of the two probe agencies in the Torres Ponzi scheme case, in which over 15,000 people were defrauded to the tune of Rs 177 crore, do not seem to be on the same page as far as the role of the alleged 'whistleblower' of the case CA Abhishek Gupta is concerned. The Enforcement Directorate (ED), which has recently filed a chargesheet against 13 individuals and entities in the case, has claimed that during their money laundering investigation, they discovered CA Abhishek Gupta is one of the key accused in the case. ED had initiated an investigation under the Prevention of Money Laundering Act based on the predicate offence lodged by the APMC police station of Navi Mumbai police, which has also named Gupta as an accused in their FIR. According to the anti-money laundering agency, Gupta has been the statutory auditor of M/s Platinum Hern Pvt Ltd (the company that ran Torres Ponzi schemes) since its incorporation. Gupta failed to report financial irregularities in a timely and proactive manner despite claiming to have disclosed them in his audit reports. CA Gupta has claimed to be the whistleblower of the case. Gupta, after internally flagging the financial irregularities with the Torres's top management, had sent the details via emails to various law enforcement agencies (including Mumbai Police-EOW) highlighting the criminal financial irregularities. However, the ED is not buying this claim. According to the central agency, Gupta's delayed (email) complaint on January 2, 2025, long after becoming aware of the misconduct, undermines his claim of acting as a whistleblower, the agency sources said. Sources further added that the ED stated in the chargesheet that there is no evidence of any earlier effort to report or escalate the issues to authorities. His inaction during the crucial period suggests a lapse in professional responsibility and indicates complicity in the company's continued illegal operations. These all prove that he knowingly assisted the company in the activities of money laundering. The Torres Ponzi scheme key operatives had fled the country before the fraud surfaced fully. And for the initial few weeks, they kept investors misguided by claiming that by sending messages to the investors from undisclosed locations, Gupta and CEO Tausif Reyaz were the brains behind the scam. However, Gupta regularly presented himself before the police and assisted them in the probe. He even approached the Bombay High Court as a 'whistleblower' seeking protection from any coercive action. The High Court had considered his plea. The EOW officials too considered him the whistleblower in the case and refrained from filing charges against him in their chargesheet. In fact, the EOW made him one of the key witnesses of the case. It is pertinent to note that allegations were also levelled against the police department for not promptly acting on the complaints from various individuals against Torres before all masterminds escaped the country. Geeta Gupta, one of the victim investors and member of the core group legally fighting the case on behalf of investors, said, 'We too suspect Gupta for his involvement in the fraud.' However, advocate Vivek Tiwari representing Gupta, said, 'My client reported financial irregularities in his audit reports dated 26/12/2024 and informed the relevant authorities, including the customs department and the opposition leader in December 2024 to protect the public interest. Despite receiving no positive response, my client continued to contact investigation agencies starting from 30/12/2024. My client is a key witness in the Mumbai EOW and in the ED chargesheet, the accusations against my client are mischaracterized, indicating a lack of coordination between investigation agencies. My client has consistently cooperated with the ED, and all allegations against him are false and baseless.' Ukrainians invested Rs 4.35 crore to commit Rs 177 crore fraud According to the sources, the ED, in its money laundering investigation, has found that the Ukrainian masterminds invested nearly Rs 4.35 crore as capital and, using it, carried out mass fraud worth Rs 177 crore. The agency's probe has revealed that the cash was received from Oleksandr Zapichenko, alias Alex, one of the two Ukrainian masterminds, and then entry operator Lalan Jamedar Singh used various entities for providing accommodation entries. Through two entities, Singh allegedly made bogus investments worth Rs 45 lakh and Rs 3.9 crore in Platinum Hern Pvt Ltd.
Indian Express
5 days ago
- Business
- Indian Express
Torres Ponzi scheme: Rs 177 crore laundered by Ukrainians masterminds, Mumbai hawala operator, says ED
The chargesheet filed by the Enforcement Directorate (ED) in the Torres Ponzi fraud case found that the Ukrainian masterminds, with the help of an Indian hawala operator, an entry operator and others, allegedly laundered Rs 177.11 crore. As many as 14,157 investors from across Mumbai and neighbouring districts lost nearly Rs 150 crore between January and December 2024 to the alleged Torres fraud run by Platinum Hern Pvt Ltd company, which was operated by Ukrainian masterminds. In March, the Economic Offences Wing (EOW) also filed a 27,134-page chargesheet in the matter. According to the sources, the ED chargesheet states that Platinum Hern Pvt. Ltd is accused of running a fraudulent investment scheme by selling low-value synthetic moissanite as high-value gemstones, promising exaggerated returns and using misleading advertisements, fake bonuses, and a referral system resembling a Ponzi scheme. Investigation conducted so far revealed that the key persons involved in this case are Alpesh Pravinchandra Khara (alleged hawala operator), Sagar Paresh Mehta, Oleksandr Zapichenko alias Alex, Olena Stoian, Victoria Kovalenko, Tazagul Khasatova alias Tanya, Lallan Jamedar Singh, Tausif Reyaz, Abhishek Gupta and Savesh Ashok Surve. The ED tried to quantify the scam by analysing the computer systems, logs, records, and other conversations between the accused over chatting apps. 'Based on the currently available evidence, the total proceeds of crime identified as on the date of filing the case was estimated to be Rs 177.11 crore,' said a source. Investigation also revealed that alleged hawala operator Alpesh Khara played a critical role in aiding and assisting one of the two masterminds—Oleksandr Zapichenko alias Alex—in converting the cash collected from the customers (investors) into cryptocurrency USDT, which was then credited to digital wallets associated with individuals known to Alex. The ED made inquiries with crypto platforms and confirmed Khara's account with various crypto platforms, though it showed limited activity, indicating the use of proxy wallets to conceal identities and traceability. Alex and other accused Olena Stoian are the key architects of the financial structuring and laundering operations of Platinum Hern Pvt Ltd. From providing initial capital through illicit means to orchestrating the conversion and reintroduction of unaccounted cash as legitimate investment, Alex systematically facilitated the concealment of proceeds of crime. Their direct involvement in converting the cash deposits of customers into cryptocurrency and settling large cash transactions further underscores their central role in the money laundering network, said the ED chargesheet. Accused Lallan Jamedar Singh helped the accused with accommodation entry services. Whistleblower also made accused The ED filed the chargesheet against 13 people and entities, including accused CA Abhishek Gupta who claimed to be the whistleblower of the case. Gupta, after internally flagging the financial irregularities, had sent the details via emails to various law enforcement agencies, highlighting the criminal financial irregularities. When the matter surfaced, Torres operators from undisclosed locations were sending messages to the investors claiming Gupta was the brain behind the scam. However, Gupta regularly presented himself before the police and assisted them in the probe. He had also approached the Bombay High Court seeking protection from any coercive action. The high court considered his plea and instructed EOW to form a SIT to probe the FIR. The EOW officials too considered him the whistleblower in the case and refrained from filing charges against him in their chargesheet. Infact, they have made him a star witness in the case.
Indian Express
22-04-2025
- Business
- Indian Express
51 lakh citizens lost Rs 15,483 crore in investment frauds, Mumbai police re-starts Economic Intelligence Unit
Five years after its dissolution over corruption allegations, an intelligence unit for the effective prevention of economic offences has now been newly formed by Mumbai police. Vivek Phansalkar, Mumbai Police Commissioner, passed an order on April 16 (a copy is available with The Indian Express) for formation of a new designated Economic Intelligence Unit (EIU) under the Economic Offences Wing (EOW). The Indian Express on January 11 had first highlighted the absence and significance of such an intelligence unit in Mumbai after the Torres Ponzi scheme mass fraud surfaced, in which nearly 15,000 victims lost around Rs 150 crore to a well-organised fraud allegedly committed by Ukrainian-based masterminds. In the absence of a financial crime intelligence unit and the lack of oversight, a fertile ground was created for foreign nationals, including those behind the Torres scam, to establish operations in Mumbai, offer unprecedented financial returns, and dupe unsuspecting investors — all without the police having any prior knowledge or intelligence about the scheme. Thus, such mass frauds flourished without any checks. As per the police commissioner's order, the new EIU cell would be headed by a senior inspector (SrPI) rank officer assisted by two sub-inspectors or assistant inspectors and eight men (constables). 51 lakh people lost Rs 15,500 crore in 10 years in Mumbai Underlining the need for having an intelligence unit for financial crime, the police commissioner's standing order stated, 'In the last 10 years since the formation of the Economic Offences Wing of the Mumbai police, there have been approximately 100 cases (96) registered under the provisions of the MPID (Maharashtra Protection of Interest of Depositors) Act. These cases involve a defrauded amount of approximately Rs 15,500 crore and over 50 lakh victims. The magnitude of the problem is therefore evident. In this context, it is felt that a mechanism for preventing the occurrence of such offences be brought into force. How EIU will function The mandate of the EIU will include, collection of information regarding ongoing deposit schemes operating in the jurisdiction of the zone on a monthly basis. This report must be sent by the Zonal DCPs by the fifth of every month (to the EIU). In addition, the EIU must also suo motu collect such information from field and social media sources and put them up before the joint commissioner of police, EOW. The data collected (by EIU) will later be categorised into regulated and unregulated schemes. In the case of the latter, a primary inference regarding the applicability of the BUDS Act (Banning of Unregulated Deposit Schemes) may be drawn. If the scheme is found to be in the nature of an unregulated deposit, the zonal DCP should forward it to the JtCP, EOW only for information. He/she should proceed with further action under the BUDS Act, wherever applicable. Based on the inputs collected and due permission from the commissioner, appropriate discreet enquiry may be done (by the EIU). 'If there is indication of fund diversion for purposes other than those from which assured returns may be reasonably expected, this fact must be noted. Alternatively, it may be a case of multi-level marketing or incentive-based referral schemes. All schemes categorised under the Red Category would be brought to the notice of the JtCP EOW by the EIU through proper channel, on file. The JtCP would then submit it to the CP Mumbai, who would decide the appropriate legal recourse to be adopted, the commissioner's order reads. In the year 2020, the EOW's 'Intelligence Cell', which was in operation since the formation of the EOW, was dissolved following corruption allegations. Since its disbandment, the EOW has lacked a dedicated mechanism to gather intelligence on large-scale financial crimes and investment frauds. Former police commissioner Sanjay Barve, who once called EOW the 'Settlement Branch', believed that the Intelligence Unit, under the then Deputy Commissioner (DCP) of EOW, had been assigned more investigative cases than it was designed to handle. Despite the unit's primary mandate being the gathering of intelligence, not conducting investigations, Barve raised concerns about the overreach. Additionally, amid corruption allegations against some officers, Barve decided that the Intelligence Unit was no longer necessary. At his direction the unit was dissolved. EIU lacks power? Sources within the police force have indicated that the newly formed EIU provides less rights to the officers working in it. If you are re-forming a crucial unit after 4-5 years then it should be upgraded once, but that's not the case with EIU. The order for new EIU also does not speak anything on their specialised training. The old unit, which was specifically tasked with gathering intelligence on individuals and schemes targeting gullible investors with promises of high returns, consisted of a team of four to six highly trained and well-informed officers, supported by a group of tech-savvy constables. These officers underwent regular training by industry experts to enhance their ability to gather intelligence on economic offences. The old Intelligence Unit (of EOW) coordinated with the Fraud and Recovery Intelligence, Risk Containment Units, and Vigilance Units of major financial institutions, including the RBI and commercial banks. Through collaboration with these vigilance units, the Intelligence Unit was able to advise organisations on preventive measures against fraud and gather advance information on suspicious transactions. This early-warning system allowed the police to monitor potentially fraudulent activities before they could escalate. After mass frauds like Torres, and CA Amber Dalal ponzi schemes surfaced, many had felt the need to revive the economic offences intelligence unit. Many officials argued that dissolving such an essential unit over corruption allegations was a poor choice. They contend that there are alternative measures, such as transferring or disciplining the rogue officers, rather than dismantling an entire unit that had a critical role in addressing rising financial crimes. Major ponzi schemes & investment frauds in Mumbai * Torres ponzi scheme mass fraud: In this cashback form of investment fraud, people were lured into investing money, promised weekly interest ranging from 4 to 12 per cent. Nearly 15,000 victims from Mumbai, Thane, Navi Mumbai and Mira Road lost around Rs 150 crore to a well-organised fraud allegedly committed by Ukrainian-based masterminds. * Amber Dalal case (2024): CA Amber Dalal defrauded 2,009 investors of ₹1,100 crore through a ponzi scheme, promising monthly returns of 1.5%-1.8%. Assets worth ₹67 crore were attached by the ED after his arrest. * Heera gold investment fraud (2018): Prime accused Nowhera Shaikh of Heera Gold group of companies along with her associates allegedly carried out an investment fraud in which over 250 people were duped to the tune of Rs 18 crore. Shaikh is facing multiple fraud cases across India for allegedly duping thousands of people to the tune of Rs 500 crore across the country. * Conman Chandrashekhar (2015): Chandrashekhar, posing as an MP, duped 500 people of ₹19 crore via Lion Oak India. He was arrested along with actress Leena Paul. * Qnet scam (2013): Around five lakh investors lost ₹1,000 crore in a pyramid scheme run by Michael Ferreira and others under QNET. * City Limousine Scam (2007): Over 65,000 investors were swindled of ₹980 crore in Mumbai alone, with total liabilities exceeding ₹2,885 crore. * SpeakAsia scam (2010): The company duped 24 lakh investors of ₹2,276 crore, funneling ₹900 crore abroad through fraudulent marketing surveys.
