Taking major action in the money laundering case related to Multi Level Marketing (MLM) and alleged Ponzi scheme, the Enforcement Directorate (ED) on June 30 raided 8 locations in Tamil Nadu and Kerala. This action was taken on the premises of Dream Makers Global Private Limited (DMGPL) and people associated with it. The raids were conducted in Coimbatore, Krishnagiri, Malappuram and Thrissur districts.
According to ED, the investigation was initiated on the basis of the FIR registered by the Economic Offenses Wing (EOW) of Tamil Nadu Police. Investigation revealed that the company collected crores of rupees from thousands of people in the name of investment in software projects and packages. Investors were lured with huge profits every day and doubling the amount in 150 days.
Huge financial loss to thousands of investors
The investigating agency says that initially returns were given to some investors, so that people’s confidence was maintained. Later the payments stopped, due to which thousands of investors had to suffer huge financial losses. According to ED, the then managing director of the company S. Satish Kumar (now deceased), Director Gunavathi and Manager Mugunthan Nair along with other associates collected hundreds of crores of rupees from the common people.
False assurance of high profits
It is alleged that Mugunthan Nair used to organize publicity programs to attract investors and motivate people to invest by giving false assurance of high profits. The investigation also revealed that people associated with the scam purchased several immovable properties, vehicles and other personal properties with the money received as commission and alleged returns.
ED seized many important documents
Bank accounts, fixed deposits and other financial investments of the accused and their associates have also been identified, many of which have already been frozen by other investigating agencies. During the raid, ED has seized many important documents, diaries, digital records and documents related to properties allegedly purchased with the scam money. The agency has said that the investigation of the case is still going on.
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