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.
