The Enforcement Directorate (ED) has arrested an accused Abdul Gafoor in connection with investigation in a money laundering case worth Rs 1,200 crore linked to fake crypto Morris Coin Case.
The ED had initiated money laundering investigation on the basis of an FIR registered by the Crime Branch, Malappuram and investigation report submitted by it against Nishad and others wherein.
Nishad was the main accused, who cheated several investors by accepting investments, under a Ponzi scheme, through his three Bengaluru based firms; Long Reach Global, Long Reach Technologies and Morris Trading, by offering high returns of dividend such as 3 to 5 percent per day.
As per the FIR, more than 900 investors were cheated to the tune of Rs 1,200 crore.
Investigation by ED revealed that Nishad, the main accused, had appointed those persons as pin stockists, who had invested a minimum of Rs 10 lakhs in his scheme. Nishad promised them that he would give 5 percent as commission on the investment.
They made aggressive enrolment of new members into an illegal money circulation scheme under the garb of multi-level marketing, resorted to fraudulent practice of investing the money received from the investors in the Morris Coin Cryptocurrency plan run by Nishad and others. This further led to viral proliferation of the network of the scheme and thereby made huge wrongful gain at the cost of investors, the ED said in a statement.