ED Cracks Down on Bengaluru-Based Stock Market Fraud

The Enforcement Directorate (ED) arrested four individuals in Bengaluru for allegedly duping people through fraudulent stock market investment apps. The accused are charged under the Prevention of Money Laundering Act and are connected to police FIRs across Haryana, Uttar Pradesh, and Punjab. Incriminating evidence, including digital devices, has been seized.

The Enforcement Directorate (ED) has arrested four individuals in Bengaluru under the anti-money laundering law PMLA. They are accused of duping people into investing in fake stock markets using fraudulent mobile apps.

Shashi Kumar M (25), Sachin M (26), and Kiran S K (25) were detained on August 15, while Charan Raj C (26) was apprehended on August 21, as per an official statement from the agency.

The quartet was involved in setting up companies and bank accounts to launder proceeds from the alleged cyber scam. The case originates from multiple police FIRs, including in Haryana, Uttar Pradesh, and Punjab.

The agency reported that similar fraudulent tactics have been used elsewhere, conning people into transferring their savings under the guise of high-return investments. Victims were tricked into investing in fake IPOs and stocks, funneling their money into shell companies for cybercrime collection.

During the investigation, authorities seized incriminating material, including mobile phones and other digital devices. The ED has traced more than Rs 25 crore in proceeds from the scam so far.

(With inputs from agencies.)