ED raids locations in Ahmedabad and 3 more cities in loan fraud case

Defrauded amounts were routed through people based in US and converted into cryptocurrency

The Mumbai Zonal Office of the Enforcement Directorate (ED) on Saturday said it had conducted search operations at multiple locations in Ahmedabad, Jaipur, Jabalpur, and Pune in connection with an ongoing investigation into cyber fraud activities allegedly carried out by M/s Magnatel BPS Consultants and LLP.

The ED said it had initiated an investigation on the basis of an FIR filed by the Pune Cyber Police against eight individuals allegedly involved in operating a fake call centre under the name M/s Magnatel BPS Consultants and LLP. Two partners of M/s Magnatel BPS Consultants and LLP, identified as Sanjay More and Ajit Soni, were also arrested from Jaipur in connection with the case, the agency said.

The said call centre, functioning since July 2024 from the 9th floor of Pride Icon Building in Pune, is accused of targeting citizens of the United States through a fraudulent loan scheme.

“As per preliminary findings by the ED, the accused posed as representatives of banks and falsely offered loans. Using this deception, they obtained the bank account details and other credentials of US citizens. These details were then used to transfer funds. The defrauded amounts, estimated to be in millions of US dollars, were routed through accomplices based in the US and subsequently converted into cryptocurrency, primarily in the form of USDT,” said an ED statement.

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The digital assets thus obtained were stored in crypto wallets, including Trust Wallet and Exodus Wallet.

The ED said that the investigation further revealed that the proceeds of crime were transferred to India and encashed in Ahmedabad using traditional informal channels (Angadiyas). A share of the fraudulent gains were then allegedly funnelled through mule accounts and credited into the bank accounts of the company which were used primarily for the purchase of software and payment of rent for the office premises from which the fraudulent activities were being conducted.

A major share of the funds were utilised for purchase of personal assets, such as bullion, jewellery, vehicles and immovable assets, said the ED, adding that during the course of the search operations, 7 kg gold, 62 kg silver, Rs 1.18 crore in cash, documents related to immovable assets valued at Rs 9.2 crore, and alleged incriminating digital evidence pertaining to the operations of the fake call centre were seized.

Further investigation is ongoing.

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