Thiruvananthapuram: The Directorate of Enforcement’s (ED) Cochin Zonal Office has carried out search operations at six locations across Kerala’s Malappuram, Kozhikode, and Kasaragod districts in connection with a large-scale investment fraud case, an official statement said.
The searches were conducted under the provisions of the Prevention of Money Laundering Act (PMLA), 2002.
The raids on Wednesday targeted the residences of key accused individuals — Muhammed Faisal, Cheroor Ahammed Jalaluddeen, Abdul Mansheef, Nashid K.P., and Abdul Rasheed — as well as the premises of Fexmy Mattress LLP, one of the entities allegedly used to launder proceeds of the crime.
The operation led to the seizure of documents related to immovable properties valued at approximately Rs 2.35 crore, held in the names of the accused and their family members.
Investigators also confiscated evidence of cryptocurrency investments, incriminating documents, and several digital devices for further forensic analysis.
The ED initiated the probe based on multiple FIRs registered against My Club Traders (MCT), its Managing Director, Faisal, and others under various sections of the Indian Penal Code (IPC) for allegedly defrauding investors through a high-return pyramid-style money circulation scheme.
According to the ED, My Club Traders ran a binary pyramid investment scheme falsely presented as a Malaysian investment opportunity. The scheme lured thousands of gullible investors, mostly in Kerala, promising unrealistic profits. Large sums of money were collected in cash and subsequently laundered through a network of shell entities, including Princess Gold and Diamonds LLP, Toll Deal Ventures, and Fexmy Mattress LLP.
Investigators suspect that a portion of the illicit proceeds was routed out of India and then reintroduced through cryptocurrency transactions and gold-based investment schemes, such as the “My Gold” programme operated by Princess Gold and Diamonds LLP.
The ED stated that further investigation is ongoing to trace the full extent of the money trail and identify additional assets linked to the scam. More seizures and arrests are likely in the coming weeks as the probe progresses.
(IANS)
