Four people, R. Aravinth, S. Gopalakrishnan, S. Bharathraj, and the three directors of M/s. Bluemax Capital Solutions Pvt. Ltd., and their associate J. Amarnath of Tuticorin, were detained by the Directorate of Enforcement (ED), Madurai Sub Zonal Office on November 18, 2022. A PMLA Special Court has granted 12 days of ED custody for all of the accused.
Based on complaints from the general public that they were duped by M/s. Bluemax Capital Solutions Pvt. Ltd. under the pretence of investing their money in trading of forex, commodities, gold, etc. for guaranteed higher returns, multiple FIRs were registered by the Tamil Nadu state police against M/s. Bluemax Capital Solutions Pvt. Ltd., its directors, and others throughout Tamil Nadu state during the years 2020 and 2021. Around 108 crore rupees have been stolen from regular people.
The results of the PMLA investigation found that the company’s directors had constructed a website for the business with fraudulent information that purported to demonstrate real-time FX trading using investors’ funds. A person who invested money with the firm would receive an account, and the company’s website was set up such that when a person logged into his or her account, it would display statements that were erroneously portrayed as normal real-time forex trading being done in the accounts.
The website was created to deceive investors by falsely representing real trading in forex, commodities, and other markets through trading charts, etc., tricking the investors into believing that their money was being invested in trading and deceiving them into believing that a fictitious account statement with Profit and Loss was provided on a monthly basis.
The directors organised a fraudulent hack of the firm server on purpose in October 2019, telling the investors that their money had been lost in a trade. They had then given a few investors token repayments of the portion of their money while leaving the rest high and dry.
The money of the investor was not invested in any of the trading activities as promised, according to the ED investigation, and the aforementioned arrested individuals diverted a sizable sum of the investor’s funds through various business entities, investing in new companies in their names or the names of their wives as well as covertly purchasing cryptocurrencies. Additionally, it was discovered that the three directors had jointly established businesses and bank accounts in the name of M/s. Bluemax Global Ltd. in other countries, namely the United Arab Emirates, Hong Kong, Belize, and the United Kingdom.
Additionally, they had established several firms and opened bank accounts in other nations in their names and the names of unconnected people in order to engage in fraud and defrauding in a similar manner. The probe is being expanded upon.
