Representative image for financial fraud.
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Bengaluru: The Bengaluru police say they have arrested six people, who allegedly conned gullible investors out of lakhs of rupees through fake IPOs.
The gang contacted the victims via WhatsApp and sent them online links to a dubious app. Investors who showed interest were sent bank account numbers where they were asked to send money towards "investments". The gang simply disappeared after receiving the money.
The police have identified at least 10 suspects and tracked down six of them: Syed Sultan, 29, Sheikh Dastagir, 26, Karthik A, 19, Amit Karekar, 25, Guru Bhai, 26, and Bharath Bhai, 32. Police have also issued a lookout notice to nab the kingpin.
A 37-year-old resident of HSR Layout filed a police complaint after losing Rs 35.3 lakh. Police trailed the money transaction to identify the point of money withdrawal.
"In most cases, the money was withdrawn at an ATM near Charminar in Hyderabad. We sent a team there and arrested two people who were withdrawing money," a police officer close to the investigation told DH.
In some cases, the suspects also withdrew money from ATMs near Hubballi. The money was converted into cryptocurrency and sent to the kingpin based in Dubai, police investigations show.
Hawala route
In addition, the ill-gotten proceeds were disposed of through the Hawala route. "Our investigations have established this,” the officer said.
A large portion of the money was sent to a person in Ahmedabad via Hawala and cryptocurrencies, the officer added.
A senior police officer who oversaw the investigations told DH they received credible information about the Hawala business and had written to the Enforcement Directorate (ED).