ED arrests four persons from Tamil Nadu in cyber fraud case

New Delhi [India], September 14 :The Enforcement Directorate (ED) has arrested four persons from Pallipattu in Tamil Nadu in a case related to the cyber fraud of Rs 2.6 crore by a cyber criminal posing as a Central Bureau of Investigation (CBI) officer.
The accused, identified as Tamilarasan Kuppan, 29, Prakash, 26, Aravindan I, 23, and Ajith, 28, were arrested on September 13.
As per the ED, all four accused were involved in the incorporation of shell companies and the opening of bank accounts, through which Proceeds of Crime generated from the cyber scam were laundered. A Special Court in Bengaluru has granted ED custody of four days to these accused persons.
Further, the agency said it has frozen the Rs 2.8 crore proceeds of crime in the bank account of a shell company, Cyberforest Technology Private Limited.
ED initiated an investigation on the basis of several FIRs registered by various State police all over the country, including FIR No. 330 dated September 3, 2024, registered by the Special Offences and Cyber Crime Police in Jaipur.
The victim in the FIR No. 330 in Jaipur received a call from a mobile number wherein a person claimed to be calling from Mumbai Custom Office and communicated to the victim that illegal goods were being sent abroad under the victim's name.
The victim was then instructed to make a "fund legalisation" payment as a security to ensure that no money had been illegally earned by the victim. A total amount of Rs 2.16 crore was asked to be transferred by the fraudsters in three separate instalments into three different accounts provided by the caller, under the guise of "fund legalisation".
Subsequently, the ED said, an individual who claimed to be a CBI officer contacted the victim over mobile phone.
"The fraudster continued to assert that he was a CBI officer. Furthermore, a call was received by the victim from someone who claimed to be DCP Delhi Police, to verify the authenticity of the so-called CBI officer. On the insistence of so-called government officials, the victim was pressurised and extorted of his entire life savings and investments, amounting to Rs 2.16 crore," said the federal agency.
By way of swift action by ED, POC to the tune of Rs 2.8 crore have been frozen in a Bandhan Bank account of the shell company Cyberforest Technology Private Limited on September 12, in which the proceeds were transferred by the victim, said the agency.
"The whole process and activities related to transactions in the bank accounts of these shell companies were done through a WhatsApp group where Tamilarasan, Ajith, Aravindan, Prakash,, along with Chinese scammers were members."
Investigation has revealed that Tamilarasan, one of the arrested persons, was in contact with Chinese cyber fraudsters for syphoning off the amount of Rs 2.8 crore frozen in Bandhan Bank.
"It has also been revealed that Tamilarasan, Ajith, Prakash, and Aravindan were actively involved in the incorporation of shell companies and the opening of bank accounts of these shell companies, which were used to launder the proceeds of crime generated from various cyber frauds," said the ED.
"Tamilarasan, in active assistance with Ajith, Prakash, and Aravindan, ran a syndicate to assist cyber fraudsters in arranging dummy directors, addresses and documents for incorporation of shell companies and liasoning with bank personnel for opening of accounts through which proceeds of crime generated from cyberfrauds were laundered," added the agency.
Earlier, ED had arrested four persons, namely Shashi Kumar M, Sachin M, Kiran S K, and Charan Raj C, on August 15 and August 21 this year in Bengaluru. They are currently in judicial custody.
So far, 17 searches have been conducted at various premises, which led to the seizure of various incriminating material, including mobile phones and other digital devices and the freezing of Rs 2.8 crore in the bank account.
Investigation under PMLA, 2002 has, so far, identified POC of more than Rs 28 crore generated from a cyber scam.