Odisha EOW arrests Kerala-based shell firm director in online Ponzi case

Bhubaneswar: The Economic Offences Wing (EOW) in Bhubaneswar has arrested Dileep Kumar P, director of a Kerala-based Shell company, from Thrissur, Kerala, in connection with an online Ponzi scheme involving '18football.com'.

He is the director of Priwest Global Solution Pvt Ltd, which channeled the ill-gotten money from this scam, according to an EOW release. This company was used to route approximately Rs 19.49 crore. Dileep is also the founder and managing trustee of the Coimbatore-based Omana Foundation Charitable Trust, which was also used to channel the scam's criminal proceeds. "4000 to 5000 illegal transactions were carried out in the company and trust's bank accounts," it stated.

He was brought to Odisha on a 6-day transit remand and will appear in court in Berhampur.

Md Saif, the Dubai-based operator/promoter of this scam, was previously named in a watchlist. Two directors of a shell company Hakim & Rustam Fabrics Pvt Ltd were arrested from Kolkata and one director of a shell company Edudaddy Institute of Advance Studies Pvt Ltd was nabbed from Udaipur, Rajasthan, after over some people of Ganjam district in Odisha lodged a complaint after losing money in 18football.com, a hybrid model of fraud where Ponzi scheme (multilevel marketing) is run online under the garb of football betting/gaming app.

"It is a massive international scam operating online from a website registered in Hong Kong (China) and also operated from Dubai." "Investors are promised lucrative benefits such as 3% daily compound return on investment, recharge bonus, referral bonus, extra bonus on down-line members' earnings, salary bonus, and daily withdrawal option," the release continued.

The investors were required to open an account with 18football.com, either through an application or an offline referral link, and then bet money on specific football matches as specified on the website/app. They were also given a so-called foreigner "mentor" to help them with their betting. These mentors only communicated via Telegram or apps. 

It stated that there was an additional bonus/commission for introducing/recruiting new members.

The fraudsters also did social work and charity in rural areas to promote and entice the innocent public. The scammers initially paid the promised return, but as membership grew, they stopped paying and closed the app.

"The scammers routed the ill-gotten money through multiple shell companies/firms and their directors." They also used mule accounts to confuse law enforcement agencies by layering money transactions. They used to get orders/direction from Md Sheikh Saif in Dubai.

The 18football.com fraud has ramifications throughout India, and the fraud amount is suspected to be more than Rs 1000 crore, of which EOW has been able to trace approximately Rs. 525 crore to date," it added.