On December 9, 2022, the Directorate of Enforcement (ED) conducted search operations in accordance with the Prevention of Money Laundering Act (PMLA), 2002 at various locations in Bengaluru, Pune, and Noida as part of investigations into the unauthorised use of the Matrix Partners Fund (MPF) App and other connected Apps.
The case is predicated on an FIR filed on November 26, 2021, in Shillong, Meghalaya’s Mawlai Police Station, against the organisations or people responsible for the Matrix Partners Fund (MPF) App. The MPF App was a “scam investment Application” that advertised extremely high returns in an effort to deceive unsuspecting investors throughout the nation into investing their hard-earned money in it.
Investigations have shown that other businesses operated numerous additional apps relating to investment frauds, loans, gaming, betting, rummy, etc. that were connected to this one. The method these firms operate is to register businesses using forged documents and make fictitious directors, then develop mobile apps and raise money through different Payment Gateways by lying or misrepresenting the nature of the business associated with the apps.
It has been discovered that these businesses utilised to register as merchants on multiple payment gateways after developing the apps and opening bank accounts. They then used the Payin and Payout functions of the payment gateways to collect and distribute money to the general public. People invested additional money when they originally saw favourable returns or benefits, and after some time, when a significant sum of money had been amassed, the developers of those Apps deactivated them and vanished with the ill-gotten gains. Along with having bogus addresses, these businesses were also discovered to not be functioning out of the registrations or addresses are shown on the MCA website.
The Matrix Partners Fund (MPF) App and other connected Apps’ merchant IDs and bank accounts have had money in them totalling Rs 51.11 crore frozen during the search operations. The probe is being expanded upon.
