NEW DELHI: The Enforcement Directorate (ED) carried out raids at eight premises across Chennai, Erode, Coimbatore and Krishnagiri in connection with Rs 400 Ponzi scheme run by Unique Exports and its associates, the agency said on Wednesday.
The scheme was allegedly masterminded by S Naveen Kumar along with associates Jeevalatha, K Prabhu, K Mathan Kumar, Muthuselvam and J Franklin, who promised investors returns exceeding 200 percent through a purported agricultural export business dealing in onion, potato and other produce. Investors were also offered commissions for referring others.
The federal probing agency found that the accused floated at least seven shell entities including East Valley Agro Farms, Indo Russian Rare Earth Metals and Sara Exports to receive investor funds and layer the proceeds.
“Around Rs 400 crore was allegedly raised from the public and siphoned into immovable property, fixed deposits and foreign transactions,” the agency said.
Searches yielded digital devices and incriminating documents. The probe was initiated on the basis of FIRs registered by Tamil Nadu and Karnataka police.
“During the search action, digital devices such as laptops, pen drives and mobile phones were recovered and seized. Incriminating documents related to the ponzi scheme and immovable property investments were also recovered and seized. Further, two luxury vehicles were also seized during the search operation,” the agency said.