Crime
Mumbai: ED Raids 13 Locations In Gujarat In ₹91-Crore Q-Fon App Ponzi Scam
Mumbai: The Enforcement Directorate (ED), Mumbai Zone II, on Tuesday conducted search operations at 13 locations in Gujarat as part of a money laundering investigation linked to the alleged Q-Fon App digital investment scam.
According to ED officials, searches were carried out at 10 locations in Ahmedabad and three in Surat, along with a few premises in Mumbai. The raids were conducted under the provisions of the Prevention of Money Laundering Act (PMLA), 2002, against Q-Fon App Limited and its directors in connection with a large-scale financial scam involving public investments. The searches targeted premises linked to the company’s directors and related entities suspected of receiving investors’ money.
The search was ongoing at all the three locations until the report was published and no information about any arrests or seizures was shared.
The ED action follows an FIR registered by the Economic Offences Wing (EOW), Thane, on December 28, 2024. The FIR alleged that Q-Fon App Limited, along with associated entities and directors including Sudhir Kotadiya, floated a Ponzi-style digital investment scheme claiming to generate earnings from online advertisements.
Investigation revealed that the accused promised investors unusually high returns, ranging between 2% and 10.5% per month. They collected huge sums from the public through cash deposits and online transfers routed via accounts of linked individuals and entities. The funds were allegedly siphoned off, and the accused later absconded with the investors’ money.
The Q-Fon App scam, which came to light following multiple complaints from duped investors, is part of a growing trend of app-based ponzi operations exploiting digital platforms to defraud citizens.
Officials said the fraudulent network, operating out of Ahmedabad, lured hundreds of investors across Maharashtra. The EOW FIR alleged that the scheme was led by Jay Sukhbhai Sakhia, also known as Patel, along with associates Umang Thathadia, Anant Patel, Sanjaybhai Sarithi Thathadia, and Saddubhai Dushyantbhai Thathadia. They reportedly collected crores of rupees via cash deposits and online transfers routed through linked entities.
According to an investor’s statement, the scam’s origins trace back to May 2020, when the accused introduced the “Digital Investment App” during one of the meetings. “They claimed to be running a legitimate business from Ahmedabad, assuring investors of monthly profits in US dollars through a mobile app available on the Google Play Store,” the investor told investigators.
The accused allegedly convinced participants of the scheme’s authenticity by claiming to have “connections within the Thane and Mumbai police.” Several meetings were held in Thane, Mumbai, Panvel, and Ahmedabad to persuade investors to contribute to what was described as a “secure digital earning platform.”
Later, victims discovered that the operation was a ponzi scheme, and the accused disappeared after collecting crores of rupees. The Thane EOW arrested Parag Ashok Kumar Shah, a key accused in the case, in June. Sources said that Shah, a small businessman from Narayangaon near Pune, had conspired with other businessmen from Gujarat to execute the scam.
ED sources added that the Ahmedabad-based network, operating under the guise of a “digital investment platform,” is suspected to be part of a larger pan-India ponzi racket, which defrauded investors across multiple states before vanishing without a trace.
Mumbai: In the ₹225 crore cryptocurrency racket allegedly linked to terror funding, the dark web, and narcotics trafficking unearthed in Gujarat, nine persons have been arrested, including Zeeshan Motiwala from Mumbai.
According to the cybercrime police, six accused, including Motiwala, allegedly entered into a criminal conspiracy and carried out multiple cryptocurrency transactions. Investigators claimed that Motiwala’s Binance wallet was linked to 57 bank accounts, with transactions amounting to USD 2,355,393.
The agency alleged that the accused converted “dirty” cryptocurrency into USDT and routed the funds through various channels to allegedly reach terrorist organisations.
During the probe, officials traced transactions worth Rs226.54 crore through seized crypto wallets and are now attempting to identify additional wallets and cryptocurrency networks linked to the group.
Investigators said the funds, suspected to be connected to terrorist activities, drug trafficking, smuggling, cybercrime, and other illegal operations, were internally transferred between wallets operated by the accused.
The agency further claimed that some wallets were linked to financial transaction chains associated with Hamas and the Dubai Company for Exchange, entities designated by Israel as terror-linked organisations.
Officials also stated that analysis of the Binance wallets revealed links to Abacus Market, a dark web marketplace allegedly used for criminal activities. The accused are also suspected to have used Monero wallets to conceal fund trails.
Officials found that the wallets were connected to several bank accounts allegedly used to receive proceeds from cyber frauds. According to the agency, at least 935 complaints of cheating and fraud have been linked to these accounts.
Mumbai: Self-styled godman Ashok Kharat was on Wednesday remanded to Enforcement Directorate (ED) custody till May 26 after the agency told the court it needed to probe cash flow through proxy accounts, his foreign trips, luxury cars and properties.
Kharat was produced before the special court a day after his arrest. ED prosecutor Arvind Aghav sought 10 days’ custody, claiming the agency was investigating 60 proxy accounts allegedly opened at the Rahata branch of Samata Nagari Cooperative Credit Society in the names of several people without their knowledge.
The ED told the court that transactions worth ₹47.74 crore were conducted through the 60 accounts linked to 48 special savings accounts. These included cash credits of ₹21.26 crore and cash debits of ₹23.87 crore. According to the agency, all transactions were kept below ₹2 lakh to bypass Know Your Customer (KYC) norms.
The agency alleged that cash was deposited and withdrawn by Kharat and his associate Arvind Bawake using pre-signed withdrawal slips obtained from account holders.
Asked by the court to explain his position, Kharat said, “I had cash that I wanted to deposit in a nationalised bank. However, the bank management approached me with a higher interest rate of 9%. Hence, I accepted their proposal.” He also claimed he was unaware of how so many accounts had been opened in his name.
The ED also referred to the statement of Omprakash Koyate alias Kaka Koyate, chairman of Samata Sahakari Patsanstha, recorded on May 7. According to the agency, Koyate admitted that cash deposits were converted into fixed deposits and later withdrawn.
Crime
Mumbai Shocker! 40-Year-Old Man Allegedly Molests Minor Boy In Agripada; Hunt On For Absconding Accused
Mumbai: A case under POSCO has been registered against a 40-year-old man who has been allegedly accused of showing pornographic films and molesting a 13-year-old boy in Mumbai’s Agripada area.
the shocking incident took place at the Classic Tower residential society located in the Agripada locality. The matter came to light after the traumatised minor confided in his family members about the ordeal.
Acting on it, his family immediately approached the Agripada Police, and a case under the POCSO Act and Section 351(2) BNS has been registered at Agripada Police Station.
The accused, identified as Adil Ishaq Latif, is currently absconding. A team of police have been formed and launched a manhunt to track his whereabouts.
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