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Indian Express
30-07-2025
- Business
- Indian Express
Torres scam: Court discharges CA named as accused by ED
A Chartered Accountant, who was pegged as the alleged 'whistleblower' of the Torres Ponzi scheme case by the Mumbai Police, while being named as an accused by the Enforcement Directorate, has been discharged by a special court on Tuesday. The court said that in the absence of sufficient grounds, the case against Abhishek Gupta cannot proceed. It took cognizance against 12 others, including the company, Platinum Hern, which was running the scheme and the Ukrainian nationals arrested in the case. The ED has filed a chargesheet in the case against 13 in May after the Economic Offences Wing of the Mumbai Police filed a case of cheating for allegedly duping investors. The ED named Gupta as one of the accused claiming that he had failed to report financial irregularities in a timely and proactive manner, even while he claimed to have disclosed it in his audit report. Gupta's lawyer Mithilesh Mishra argued before court that as a statutory auditor, he had neither participated nor had knowledge of any alleged money laundering activities and that there was no evidence to show his active involvement in transfer of any illicit funds. The lawyer also cited a case where the Bombay high court has discharged a CA from money laundering charges. 'There is no material/evidence to indicate that accused No.10 (Gupta) is actually involved in any process or activity connected with the proceeds of crime. Therefore, considering the limited role assigned against accused No.10 and the ratio laid down in the above cited authority, it shows that there are no sufficient grounds for proceeding against accused,' special judge R B Rote said. The court said the documents show that the other accused named in the ED chargesheet were involved in directly or indirectly dealing with the proceeds of crime. Another accused, Tazagul Khasatova, who is arrested in the case, said that she was merely an employee on remuneration and has no role in the crime. The court, however, said that there was prima facie involvement of the other accused in various roles. The ED claims that the accused lured investors through showrooms under the brand name Torres, promising them high and unsustainable returns for a period of 52 weeks but stopped paying earlier this year, following which the complaint was filed.
News18
11-07-2025
- Business
- News18
Key Gang Member Of Torres Ponzi Scheme Traced To Ukraine, To Be Extradited Soon: Report
Curated By : Last Updated: July 11, 2025, 07:30 IST A representative photo for Mumbai Police (PTI) Lurchenko Igor, one of those who masterminded and operated the Torres Ponzi scheme, has been traced to Ukraine, the Indian Express reported. Igor is one of the key members of the Ukrainian gang that duped over 15,000 people from Mumbai and nearby districts of around Rs 150 crore. The report also quoted senior EOW officials as saying that the Mumbai police's Economic Offences Wing (EOW), in coordination with the Crime Branch, has initiated the extradition to bring the accused foreigner back to India. Igor had allegedly fled India even before the fraud could come to light. 'After being informed by Ukrainian authorities, we completed due documentation and recently initiated proceedings to extradite him to India," the report quoted the EOW officer as saying. 'Soon, Ukrainian authorities will be sent an extradition request via Interpol along with all the relevant documents translated into the official language of Ukraine, and after Ukraine acknowledges our investigation, a team from Mumbai police will be sent there to extradite him to India," he said. 'Once he is brought to India, we will get custody and interrogate him. We would be able to gather more evidence to establish his exact role in the operations of the Torres Ponzi scheme," the report quoted another EOW official. In January this year, the police had booked top executives of Torres Jewellery House for allegedly cheating investors of crores of rupees in schemes it had floated, even as panicky investors demanded money they were owed. Cases were registered against five executives of the jewellery store, which has showrooms in Dadar, Grant Road, Mira Road, Vashi and Kalyan. Later, the store uploaded a message on its website, claiming that its Chief Executive Officer (CEO), Tausif Reyaz, was responsible for 'robbing and vandalising the stores, and looting jewellery and cash" along with other employees. As the investigations into the progress progressed, the Mumbai Police Economic Offences Wing searched multiple locations in the case and seized around Rs 3 crore and various incriminating documents linked to the alleged investment fraud. Swipe Left For Next Video View all In a First Information Report (FIR), the police mentioned a case of fraud against 66 different investors, for Rs 13.48 crore. However, an estimated 1.25 lakh people may have invested their money and lost around Rs 1,000 crore altogether, it was learnt. Vani Mehrotra Vani Mehrotra is the Deputy News Editor at She has nearly 10 years of experience in both national and international news and has previously worked on multiple desks. Vani Mehrotra is the Deputy News Editor at She has nearly 10 years of experience in both national and international news and has previously worked on multiple desks. view comments News india Key Gang Member Of Torres Ponzi Scheme Traced To Ukraine, To Be Extradited Soon: Report Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.
Indian Express
10-07-2025
- Business
- Indian Express
Torres ponzi scheme: Key gang member traced to Ukraine, police start extradition process
One of the key members of the Ukrainian gang that duped over 15,000 people from Mumbai and nearby districts of around Rs 150 crore through the Torres Ponzi scheme has been traced in Ukraine. The Mumbai police's Economic Offences Wing (EOW), in coordination with the Crime Branch, has initiated the extradition to bring the accused foreigner back to India, senior EOW officials told The Indian Express. Lurchenko Igor is among nine foreigners who had allegedly masterminded and operated the Torres Investment fraud and fled the country before the fraud could surface and police could take any action. A senior EOW officer said that concerned law enforcement authorities from Ukraine communicated that Igor, for whom a Blue Corner Notice (BCN) was issued by Interpol on the request of Mumbai police EOW, had been traced to Ukraine in May and agencies have kept him under watch. 'After being informed by Ukrainian authorities, we completed due documentation and recently initiated proceedings to extradite him to India. Soon, Ukrainian authorities will be sent an extradition request via Interpol along with all the relevant documents translated into the official language of Ukraine, and after Ukraine acknowledges our investigation, a team from Mumbai police will be sent there to extradite him to India,' the EOW officer said. The Ukrainian accused, Igor, was actively involved in the Torres fraud schemes' operations. He would frequent different branches of Torres, including their head branch in Dadar. He left India on December 6, 2024. After the matter surfaced and criminal cases were registered, EOW issued a BCN against Igor. Besides him, the BCN was also issued against Ukrainians Victoriia Kovalenko, Oleksandr Borovyk, Oleksandr Zapichenko, Oleksandra Brunkivska, Oleksandra Tredokhib, and Artem Oliferchuk and a Turkish national, Mustafa Karakoc. 'Once he is brought to India and we will get custody and interrogate him. We would be able to gather more evidence to establish his exact role in the operations of Torres Ponzi scheme,' said another EOW official. As many as 14,157 investors from across Mumbai and neighbouring districts lost nearly Rs 150 crore between January 2024 and December 2024 to the alleged Torres fraud run by the Platinum Hern Pvt Ltd company, which was operated by Ukrainian masterminds. The EOW in March this year filed a 27,134-page chargesheet in the matter. Later, ED, which probed the money laundering aspect of the case, also investigated the case and filed a chargesheet. According to the probe agencies, M/s 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. The investigation conducted so far revealed that the key persons involved in this case are Oleksandr Zapichenko, alias Alex; Olena Stoian; Victoria Kovalenko; Tazagul Khasatova, alias Tanya; Alpesh Pravinchandra Khara (alleged hawala operator); Sagar Paresh Mehta; Lallan Jamedar Singh; Tausif Reyaz; and Savesh Ashok Surve. By analysing the computer system, logs, records, and other conversations between the accused over chatting apps, the ED found that the total proceeds of crime are estimated to be Rs 177.11 crore. The Torres case On January 6 this year, thousands of investors from Mumbai, Thane, Navi Mumbai, and Mira Road staged protests outside Torres' jewellery stores in Dadar, Mira Road, and APMC Navi Mumbai. The police of these three cities have registered separate FIRs in the case, and the Shivaji Park police registered the main FIR. Later, the Mumbai police's EOW took over the investigation. A court-ordered SIT headed by the Mumbai EOW joint commissioner of police, Nishith Mishra, is supervising all three separate probes. As many as 11 accused, including eight Ukrainian nationals and a Turkish national, are still wanted in the case. After raiding multiple locations of the Torres company and accused persons, the EOW officials seized properties worth Rs 32 crore and approached the court seeking permission to get the seized properties auctioned so that investors can get refunds. Since the ED had been conducting a parallel probe, the agency found that the Ukrainian masterminds invested around Rs 4.35 crore as capital and, using it, carried out mass fraud worth Rs 177 crore. The agency's probe revealed that the cash was received from Oleksandr Zapichenko, and then entry operator Lalan Jamedar Singh used various entities to provide accommodation entries. Through two entities, Singh allegedly made bogus investments worth Rs 45 lakh and Rs 3.90 crore in Platinum Hern Pvt Ltd. Investigation revealed that alleged hawala operator Alpesh Khara played a critical role in aiding and assisting one of the two masterminds, Oleksandr Zapichenko, in converting the cash collected from customers (investors) of M/s Platinum Hern Pvt Ltd into the cryptocurrency USDT, which was then credited to digital wallets associated with individuals known to Alex. Alex and the other accused, Olena Stoian, are the key architects of the financial structuring and laundering operations of M/s Platinum Hern Pvt Ltd. From providing the initial capital through illicit means to orchestrating the conversion and reintroduction of unaccounted cash as legitimate investment, Oleksandr Zapichenko systematically facilitated concealing the proceeds of the crime, ED sources said. Their direct involvement in converting the deposits made by the customers in cash into cryptocurrency and settling large cash transactions further underscores their central role in the money laundering network, agency sources added.
Indian Express
31-05-2025
- 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
29-05-2025
- 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.
