CBI (Central Bureau of Investigation) has filed a charge sheet against 17 people and 58 companies, including four Chinese nationals, for their involvement in an international cyber fraud network involved in embezzling more than Rs 1000 crore. Officials gave this information on Sunday. After busting the gang in October this year, investigating officers found that it was a well-planned and organized syndicate, which was committing various types of frauds through complex digital and financial systems.
How did the gang commit fraud?
The gang’s fraud methods included misleading loan applications, fake investment schemes, Ponzi and multi-level marketing models, fake part-time job offers and fake online gaming platforms. According to the final report of the investigating agency, this gang hid the transactions of illegal funds through 111 shell companies and embezzled approximately Rs 1000 crore through ‘mule’ accounts. It has been said in the report that there was one such account in which an amount of more than Rs 152 crore was deposited in a very short time.
Fraud was started during the Covid-19 pandemic
The CBI said these shell companies were created through ‘dummy’ directors, forged or misleading documents, fake addresses and false affidavits regarding business objectives. According to the investigating officers, this gang started this fraud in the year 2020, when the entire country was struggling with the Covid-19 pandemic. It is alleged that these shell companies were set up on the instructions of four Chinese operators Zhou Yi, Huan Liu, Weijian Liu and Guanhua Wang.
Documents of unknown people used in money laundering
The Indian associates of these Chinese operators obtained identity documents from unknown persons and used these documents to create shell companies and a network of accounts meant for money laundering. These accounts were used to launder money obtained from scams and hide the address of money transactions. The investigation revealed communication links and operational controls which, according to the agency, proved the role of a Chinese mastermind running the fraud network from abroad.
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