Massive Ponzi Scheme Uncovered

The Enforcement Directorate (ED) has filed a chargesheet in Kolkata against those involved in a massive Ponzi scheme orchestrated by LFS Broking. Thousands of investors were lured with promises of quick returns, only to discover that their investments were part of a fraudulent scheme. The company swindled at least Rs 1,600 crore from unsuspecting investors, turning their financial dreams into a nightmare.

Mastermind Behind the Fraud

Syed Ziajur Rahman, identified as the mastermind, operated LFS Broking, which was registered with the Securities and Exchange Board of India (SEBI). Despite its legitimate appearance, the company was at the center of a complex web of deceit. Rahman and his associates created multiple companies with similar names to further their fraudulent activities.

Illegal Money Transfers and Asset Acquisition

The ED’s investigation revealed that funds collected from investors were funneled into fake firms and then transferred to the UAE through illegal channels such as ‘Hawala’. This network of companies and bank accounts facilitated the movement of money across borders. In the UAE, Rahman purchased properties and established Saiyad Jiyajur Goldsmith Co. LLC in his name.

Legal Actions and Arrests

The ED has charged Rahman and five others under the Prevention of Money Laundering Act (PMLA). The accused, including Anrul Islam, Sishir Kole, Mrinal Kanti Patra, Dilip Kumar Maiti, and Badal Chandra Santra, are currently in judicial custody. The agency’s efforts have led to the freezing of numerous bank accounts and the identification of over 250 properties linked to the scam.

Ongoing Investigation

The investigation continues as the ED seeks to unravel the full extent of the scam. Raids on LFS Broking Pvt. Ltd. and its associates have uncovered significant evidence, including hotels, resorts, and other real estate assets tied to the fraudulent activities. The case highlights the need for vigilance in investment practices to protect against such schemes.