Mumbai: The Mumbai zonal unit of the Enforcement Directorate (ED) conducted search operations at various locations across the state as part of its ongoing investigation into money laundering cases related to an alleged fake Ponzi scheme (foreign exchange trading platform) and multi-level marketing scheme run by the entities, officials said. Photos of Dubai businessman Vinod Khute and others.
Officials said ED froze bank funds and fixed deposits, seized cash and jewelery worth around Rs 5 crore and recovered digital devices from various locations in Pune, Kolhapur and Nashik during the raids and documents.
The raids targeted a group of accused companies including VIPS Group of Companies, Global Affiliate Business, Kana Capital, Real Gold Capital and Phoenix FX, which was run by Khute, his family and associates from Dubai, United Arab Emirates. officials said.
Sources familiar with the matter said the ED raids uncovered a network of distributors that allegedly lured victims into investing in fake/illegal schemes/illegal trading companies run by Kut, in which funds were collected by a series of dubious entities and then transferred to a complex trading network.
The collected funds were then withdrawn in the form of cash withdrawals and transferred to Dubai through conversion into crypto/virtual assets or through hawala channels, people familiar with the matter said.
The ED’s investigation into the scam is based on a case filed against Khute at the Bharti Vidyapeeth police station in Pune for allegedly defrauding the common people in the name of Ponzi scheme/multiple marketing schemes and forex trading platform.
The victims were allegedly promised huge returns and the accused ended up with an investment of over Rs 100 crore. Kut, who is currently absconding and allegedly staying in Dubai, is accused of orchestrating multiple illegal multi-level marketing and Ponzi schemes, trading, cryptocurrency exchanges and wallet services through entities such as VIPS Group of Companies, Global Affiliate Business, Kana Capital and others, according to ED officials , Real Gold Capital and Phoenix FX.
The agency has so far temporarily attached bank deposits and real estate assets worth Rs 7,086 crore held by the accused in Pune and Dubai.