The Directorate of Enforcement (ED), Kochi Zonal Office, has provisionally attached movable and immovable properties worth ₹3.78 crore belonging to individuals accused of operating a Ponzi scheme.
The attached assets represent the proceeds of crime generated by Muhammed Faisal, Abu Sufiyan, and their associates, who allegedly cheated unsuspecting investors by promising exorbitant returns through a scheme named My Club Traders. The properties include agricultural land, residential premises, commercial plots with office buildings, and bank accounts held in the names of Faisal, his associates, and related companies.
According to an ED statement, the investigation was initiated based on multiple FIRs registered by the Kerala Police under various sections of the Indian Penal Code (IPC), 1860, relating to cheating and fraud. These cases involved the collection of large deposits from the public under the guise of investment opportunities.
The probe revealed that the accused promised unrealistic returns, such as 1% of the invested amount as daily profits on working days. The scheme functioned as a pyramid-style money circulation plan, falsely presented as legitimate trading in cryptocurrencies and other ventures. Investors were also promised a 10% binary commission for introducing new participants, enabling the collection of substantial sums.
Collected in cash
“However, the scheme depended on funds from new investors to pay earlier ones, leading to its eventual collapse and failure to return investments or profits. Throughout its operation, money was collected in cash to avoid detection, laundered through shell companies such as M/s Princess Gold and Diamonds LLP and M/s Toll Deal Ventures LLP, and used to acquire assets. These individuals and their associates generated and laundered proceeds of crime by deceiving investors with false promises and extracting large sums from them,” the ED statement said.
On June 4, 2025, the ED held searches at five locations under the provisions of the Prevention of Money Laundering Act (PMLA). During the raids, incriminating documents and materials, including diaries recording cash collections, investor details, financial transactions, and digital devices, were seized. Further investigation is under way, the ED added.
Published – December 19, 2025 06:26 pm IST
