Hyderabad: Rs 903 cr Chinese investment fraud busted; 10 held

Hyderabad, Oct 13: In a major crackdown against an App based Chinese investment fraud, the Hyderabad police on Wednesday arrested 10 persons, including Chinese and Taiwanese, in Rs 903 crore hawala cum money laundering fraud.

The police arrested the persons for duping a Hyderabad resident in an App based Chinese investment fraud, according to a report published in The Times of India.

The police have identified those arrested as Sahil Bajaj, Sunny, Virender Singh, Sanjay Yadav, Navneeth Kaushik, Mohammed Parvez, Syed Sultan, Mirza Nadeem Baig, Chinese national Lec alias Li Zhongjun and Taiwan national Chu Chun-Yu.

Hyderabad police commissioner CV Anand in a press conference said, "Lec, who was in a detention center at Delhi, was first questioned and based on his disclosure, Chu was caught after he came to Delhi from Cambodia."

The resident of Hyderabad, who was duped, had approached Cyber Crime police a few months back and informed them that he made Rs 1.60 lakh investment through LOXAM app. The accused promised a high return on the investment.

Later, the investor knew that he was duped as the App operators were no more accessible, reported the To.

The police during the investigation found that the victim's money was credited to a bank account in the name of Xindai Technologies Pvt Ltd which was opened by one Virendra Singh. When Virendra was caught in Pune, the police knew that it was Chinese-operated investment fraud which was done under the instruction of one jack, which is now believed to be in China.

While opening the bank account, two phone numbers were used to get the bank account opened in Xindai Technologies, which is shared by another account in the name of Betench Network Pvt, which was opened by Sanjay Kumar of New Delhi.

Sanjay was also found to be working for Chinese nationals and allegedly opened 15 bank accounts and shared them with the Chinese nationals.