HYDERABAD: The Economic Offences Wing (EOW) of Cyberabad police on Tuesday arrested two persons in a large-scale financial fraud that duped 3,164 victims across multiple states and illegally retained Rs 232 crore over two years.
Police said the accused operated across various states through advanced AI-powered investment platforms and Ponzi scheme tactics, luring investors with false promises of steady monthly returns based on deceptive stock market prediction software. The accused had collected Rs 850.59 crore and returned Rs 618.23 crore.
They primarily targeted middle-class families, retired individuals, and working professionals, operating a referral-based recruitment system. They promised 7% monthly returns through fabricated AI-based predictions.
Mule accounts helped accused cheat
A case was registered on July 29, following which the police arrested Gaddam Venugopal, Director of AV Solutions and Srinivas Analytics, along with Shreyas Paul, an employee of AV Solutions. The fraudulent companies identified include IIT Capital Technologies, AV Solutions, Srinivas Analytics, and Trade Bulls Technology. They employed more than 20 consultants, agents, and technical developers across major cities and operated multiple websites.
The fraud was carried out through proxy domain registrations with privacy shields to conceal ownership and hosting on Amazon Web Services (AWS) to obscure operator identities. Fake SEBI, NSE, and BSE registration numbers were used to project credibility, and investment seminars were organised in Andhra Pradesh and Telangana.
Police said the accused managed 21 mule bank accounts across ICICI, HDFC, Axis, Kotak Mahindra, and IndusInd banks, deploying layering techniques to camouflage fund flows. The illegal deposits were converted into real estate, gold, and luxury vehicles, while international laundering channels, including Dubai-based operations, were used.
The accused also systematically deleted digital records, threatened victims who tried to complain, and shut down websites under regulatory scrutiny.
A case has been registered and further investigation is on.