ED arrests two accused in online fraud and money laundering case

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ED arrests in online fraud

Highlights

The Enforcement Directorate arrested Roshan Fiaz and Ammar in Chennai under the PMLA, 2002, in an online fraud and money laundering case.
According to the ED, proceeds of crime exceeding ₹400 crore were layered and transferred from hundreds of victims through mule accounts and USDT cryptocurrency.
The investigation resulted in the seizure of ₹14.50 lakh in cash and cryptocurrency worth ₹3.26 crore, while approximately ₹88.28 lakh in several bank accounts was frozen.

This article was translated from the original. Read the original version by our correspondent here.

Scope of the investigation and alleged money laundering mechanism

According to the Enforcement Directorate, its Chennai Zonal Office-II arrested Roshan Fiaz and Ammar under the Prevention of Money Laundering Act, 2002. The case concerns an alleged arrangement in which money received from victims of online fraud was moved through a network of mule bank accounts and layered through cryptocurrency transfers, particularly USDT.

The investigation began on the basis of two FIRs: one registered with the State Cyber Crime Command Center of the Tamil Nadu Police and the other at the Cyberabad Cyber Crime Police Station in Telangana. The agency says the fraudsters used social media and phone calls to lure victims with investment schemes, job offers, stock market investments and other online opportunities, and then induced them to transfer money to mule accounts.

During the investigation, 10 more FIRs registered in Telangana, Karnataka and West Bengal were found to be linked to the same network. According to the agency, more than 600 cybercrime complaints were also found to relate to this operation. Alleged proceeds of crime exceeding ₹400 crore from hundreds of cyber fraud cases were diverted and layered through mule accounts and crypto transfers.

Roles of the main accused and seizures

The ED says Roshan Fiaz was a key figure in the network and operated a large number of mule bank accounts in his own name, his wife's name, and the names of various proprietorship firms and other entities under his control. According to the agency, debit and credit transactions exceeding ₹300 crore were identified across 31 such accounts, while money collected from victims was routed through multiple bank accounts and converted into USDT via crypto wallets.

Ammar is accused of providing Roshan Fiaz with mule bank accounts belonging to various individuals and entities, account kits, net banking credentials, SIM cards, mobile phones and email IDs, so that Indian rupees could be received from crypto buyers.

Earlier, the ED searched premises linked to Roshan Fiaz, Ammar and their associated entities under Section 17 of the Prevention of Money Laundering Act. The operation resulted in the seizure of ₹14.50 lakh in cash and cryptocurrency worth ₹3.26 crore, while approximately ₹88.28 lakh held in several bank accounts was frozen.

Both accused were produced before the Special PMLA Court in Chennai, which remanded them to 14 days of judicial custody. Further investigation is ongoing.

In our previous report on the money laundering case involving the alleged misappropriation of ₹14.95 crore from the alleged misappropriation of ₹14.95 crore from the Dr. B.R. Ambedkar Development Corporation Limited, we provided an update on the ED's court proceedings. The report covered allegations that funds were withdrawn after a fake bank account was opened using forged documents, then routed through multiple accounts to layer the money, as well as the status of asset seizure/attachment in the supplementary prosecution complaint.

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