Tamil Nadu: ED arrests four persons in Tiruvallur for major cyber fraud involving Chinese fraudsters and money laundering of Rs 2.8 crore

Days after raids were conducted amid resistance from local villagers, the Enforcement Directorate (ED) has arrested four youths from Pallipattu in Tiruvallur district for their involvement in a major cyber fraud. This follows the arrest of four persons in Bengaluru.

In a press release dated September 14, the ED announced the arrests of Tamilarasan Kuppan, Prakash, Aravindan I and Ajith under the Prevention of Money Laundering Act (PMLA) on September 13. The accused allegedly posed as CBI and Delhi Police officers to defraud individuals of millions of rupees.

ED officials from Bengaluru arrived at Mottur village, Pallipattu on September 12 and aroused curiosity among the locals when it was found that the arrested persons had substantial financial transactions in their bank accounts. The four were subsequently arrested the next day.

On September 12, the Enforcement Directorate (ED) conducted a search at Mottur village near Pallipattu in connection with a suspicious bank transaction of Rs 2.6 crore, leading to the arrest of four youths. The suspects have been remanded to four-day judicial custody by a Bengaluru court.

The arrested individuals were part of a WhatsApp group with Chinese scammers and were operating under the guidance of these Chinese handlers. They were involved in money laundering through shell companies by opening bank accounts and providing fake directors, addresses and documents for these companies. The four were also said to have spoken to bank officials to facilitate the opening of accounts that were used for laundering the proceeds of cybercrime.

ED has arrested 04 persons namely Tamilarasan Kuppan, Prakash, Aravindan I and Ajith on 13.09.2024 from Pallipattu, Tamil Nadu in a case pertaining to cyber fraud of Rs. 2.6 Crore by a cyber fraudster posing as a CBI official. The honourable special court, Bengaluru, has directed ED…

— ED (@dir_ed) September 14, 2024

The money laundering case involves FIRs filed in several states, including a complaint filed in September by the cyber police in Jaipur. According to the Rajasthan FIR, the victim received a call from someone posing as an official of the “Bombay Customs Office”. The caller claimed that illegal goods were being shipped abroad in the victim’s name and demanded a ‘fund legalisation’ payment to clear the victim of any wrongdoing.

The ED said the fraudsters demanded that Rs 2.16 crore be transferred in three separate installments to different accounts provided by the caller. Further, the victim was approached by persons posing as a CBI official and a DCP of Delhi Police. Under pressure from these fake officials, the victim was forced to transfer his entire savings and investments, totaling Rs 2.16 crore.

The ED took up the case based on FIRs registered across the country and traced suspicious transactions to Tiruvallur. They discovered a sizeable deposit of Rs 2.8 crore frozen in a bank account of the shell company, M/s Cyber ​​Forest Technology Private Limited, with Bandhan Bank. Till date, the ED has conducted 17 searches in connection with the cyber fraud and identified Rs 28 crore in proceeds of crime.

The ED said that a WhatsApp group, involving the four accused and Chinese fraudsters, facilitated the fraud. Tamilarasan was in direct contact with these Chinese cyber fraudsters to manage the Rs 2.8 crore frozen in Bandhan Bank. The four persons, who were earlier employed in private companies, left their jobs to help the fraudsters in a bid to make quick wealth.