Travel Businessman Held as Police Probe Multi-Layered Money Laundering Network Linked to Fake Investment Scam
The North Region Cyber Police of the Mumbai Crime Branch have arrested a travel businessman from Shimla, Himachal Pradesh, in connection with an alleged ₹1.07 crore online share trading and IPO investment fraud. With the latest arrest, the total number of accused in the case has risen to seven.
Investigators allege that the accused's bank account was used to receive, route, and withdraw proceeds of the cyber fraud. The case highlights the increasing use of mule bank accounts and layered financial transactions in organised cyber-enabled investment scams.
Businessman Arrested in Shimla
The arrested accused has been identified as Atma Ram, a tour and travel businessman based in Shimla.
According to the Mumbai Cyber Police, digital banking records and financial transaction analysis led investigators to his bank account during the probe.
Officials allege that:
- ₹15 lakh from the complainant's funds was first transferred to another account.
- ₹10 lakh was subsequently routed into Atma Ram's account.
- Approximately ₹9.90 lakh was later withdrawn in cash using a cheque.
The allegations remain under investigation.
Alleged Role in Routing Fraud Proceeds
According to investigators, Atma Ram allegedly stated during questioning that he permitted the use of his bank account at the request of a former bank employee.
Police claim he was promised a commission after allegedly being told the transactions were connected to online gambling activities.
Investigators further allege that:
- Around ₹3 lakh was retained as commission.
- The remaining funds were withdrawn in cash.
- The cash was allegedly handed over to the former bank employee, who is currently absconding.
These allegations have not yet been tested before a court.
Police Probe Organised Financial Network
Investigators believe the fraud involved a multi-layered network that used numerous bank accounts to disguise the origin of illegally obtained funds.
Police say the network was designed to complicate financial tracing and conceal the movement of cyber fraud proceeds.
Those arrested so far include:
- Sandeep Gopal Agrawal
- Jagjitsingh Surjansingh Shergil
- Manishkumar Kantibhai Patel
- Shibu Narayanan
- Kapil Mahavirkumar Pipada alias Vikas Jain
- Praveen Govind Kutty alias Praveen
- Atma Ram
Victim Allegedly Lost ₹1.07 Crore
The investigation began after a 43-year-old investment banking professional from Goregaon East, Mumbai, reported losing ₹1,07,37,208 in an alleged fake online share trading and IPO investment scheme.
According to the complaint:
- She was added to a WhatsApp investment group.
- She was encouraged to invest through a fraudulent trading platform.
- The platform displayed fictitious profits of nearly ₹3.60 crore.
When she attempted to withdraw the funds, the fraudsters allegedly demanded additional payments under the guise of:
- Verification charges
- Transaction fees
- Tax payments
Suspecting fraud, she approached the Mumbai Cyber Police.
Expert Warns Against Fake Investment Platforms
Cybercrime expert and former IPS officer Prof. Triveni Singh said such scams commonly lure victims by displaying fabricated profits to build confidence before demanding additional payments when investors seek withdrawals.
He advised investors to:
- Verify investment platforms through official regulatory sources.
- Avoid investment offers received via WhatsApp, Telegram, or social media.
- Exercise caution before transferring money to unfamiliar entities.
Investigation Continues
Mumbai Cyber Police are continuing efforts to trace the absconding former bank employee and identify other individuals allegedly involved in the organised network.
Officials are also examining whether similar methods were used to defraud additional victims.
Further arrests may follow as the investigation progresses.