Mumbai, Nov 5 (IANS) The Enforcement Directorate (ED) has arrested a key accused in connection with fraudulent investment schemes run in the name of APS Wealth Ventures LLP and others which resulted in a loss of nearly Rs 89 crore to gullible investors, an official said on Thursday.
The ED’s Mumbai Zonal Office arrested Avinash Arjun Rathod on November 2 under Section 19 of the Prevention of Money Laundering Act (PMLA), 2002.
The accused was arrested in connection with an investigation into the alleged diversion and laundering of proceeds of crime generated through fraudulent investment schemes run in the name of APS Wealth Ventures LLP and other associated entities, the official said in a statement.
After the arrest, Special PMLA Court in Mumbai had sent Rathod to ED custody till November 4, the official said.
The ED investigation was initiated on the basis of FIR registered by Chaturshringi Police Station in Pune against Rathod and others in connection with the alleged collection of funds from investors who were lured to invest money on the promise of assured monthly returns of five per cent profit and five per cent repayment of principal for 20 months.
The case was subsequently transferred to Pune’s Economic Offence Wing (EoW).
Investigation revealed that 587 investors had invested around Rs 157 crore in the scheme, against which around Rs 89 crores were allegedly not returned to the investors, the ED said.
Investigation under PMLA has revealed that Rathod was the principal person exercising control over the affairs of APS Wealth Ventures, holding 90 per cent ownership in the LLP and being responsible for its day-to-day management and financial decisions, including operation of its bank accounts, the ED said.
He was allegedly instrumental in managing the financial transactions and movement of funds through various bank accounts of APS Wealth Ventures and its associated entities, it added.
Investigation revealed that funds collected from investors were routed through multiple bank accounts of APS Wealth Ventures and its associated entities, including APS Smart Gain and others, the statement said.
Analysis of bank accounts and financial records revealed substantial inter-account transfers and movement of funds through various banking channels.
Investigation has also identified transactions involving the personal bank accounts of Rathod, including transfer of funds outwards to various individuals and investments in securities, which are being examined to establish the ultimate utilisation and beneficiaries of the funds, the ED said.
There are allegations that Rathod and his wife left India for Dubai in April 2023 where he has assured similar assured returns to investors under the name of Wealthpro Investment Consultant LLC owned by him in Dubai which are to be examined there, the ED added.
The ED questioned Rathod to ascertain the complete money trail, identify the beneficiaries of the proceeds of crime, trace the assets acquired therefrom and establish the role of other accused and entities involved in the alleged laundering of proceeds of crime, the statement said.
–IANS
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