ED seizes Rs.170-cr worth bank deposits in probe against ‘fraud’ forex trading platform

QFX Trade MLM fraud

The Enforcement Directorate (ED) on Thursday said it has frozen bank deposits worth Rs.170 crore following recent searches against promoters of an alleged fraudulent forex trading and deposit scheme. The anti-money laundering probe agency said in a statement that raids were launched on February 11 at various premises in Delhi, Noida, and Shamli in Uttar Pradesh and Rohtak in Haryana as part of a probe against QFX Trade Ltd., and its directors named Rajendra Sood, Vineet Kumar and Santosh Kumar apart from one of the “mastermind” Nawab Ali alias Lavish Chaudhary.

The money laundering probe stems from multiple FIRs filed by the Himachal Pradesh Police against QFX company which is alleged to have cheated many investors through a “fraud” forex trading scheme. QFX company and its directors were running an “unregulated” deposit scheme, promising high returns on investments to the investors, the ED alleged. The agents of the QFX group of companies ran an MLM (multi-level marketing) scheme under the name of the QFX investment plan and created websites, apps social media ads, etc. To attract investors promising higher rates of return in the name of forex trading, as per the agency.

After the police FIRs were filed, the ED found, that the name of the QFX scheme was changed to YFX (Yorker Fx) with the same modus operandi of “duping innocent investors by luring high rate of returns under the guise of forex trading.” “In addition to QFX more fraudulent investment schemes are being run and controlled by Nawab Ali alias Lavish Chaudhary such as BotBro, TLC Coin, Yorker FX projecting them as forex trading apps/ websites,” said ED.

The ED found various events were organized in India and Dubai to lure more customers. The probe found that multiple bank accounts of NPay Box Private Limited, Capter Money Solutions Private Limited, and Tiger Digital Services Private Limited are being used for the “collection of funds” from investors. The agency claimed these were “shell” or dummy companies that were being “used” by the masterminds of the QFX/YFX scheme to receive deposits from the public for investment in forex trading.

Funds worth Rs.170 crore kept in about 30 bank accounts have been frozen as the directors of the company could not explain the source of funds, the ED said. Cash of about Rs.90 lakh was separately seized following searches against an agent of QFX/YFX, it said.

For all the latest updates, download PGurus App.

The post ED seizes Rs.170-cr worth bank deposits in probe against ‘fraud’ forex trading platform appeared first on PGurus.