ED Targets Dubai Tycoon: Ponzi and Forex Scam Unveiled

The Enforcement Directorate (ED) has taken action to provisionally attach overseas assets valued at $5.52 million (Rs 37.5 crore) belonging to Vinod Khute, a Dubai-based entrepreneur and owner of VIPS Group of Companies and M/s Global Affiliate Business in Pune. This move is part of a money laundering investigation connected to a Ponzi scheme and forex trading scam. The ED, on Wednesday, announced the order for attaching these assets under the Prevention of Money Laundering Act (PMLA).The assets being attached consist of various flats worth $5.52 million located in Dubai, owned by Vinod Khute.

The ED's investigation originated from a First Information Report (FIR) filed by Bharti Vidyapeeth Police Station, Pune, against Vinod Tukaram Khute, Santosh Khute, Mangesh Khute, Kiran Pitamber Anarase, Ajinkya Badadhe, and others. They are accused of engaging in fraudulent activities involving Ponzi schemes and forex trading, resulting in the accumulation of over $13.9 million (Rs 100 crore) in the bank accounts of several fictitious firms.

According to ED findings, Vinod Khute, currently residing in Dubai, orchestrated various illegal activities including crypto trading and forex trading through M/s Kana Capital Limited in Dubai. He established multiple companies such as M/s VIPSWALLET Pvt. Ltd., M/s VIPSTRADE Finance Private Limited (M/s VTFPL), M/s Kana Capitals Limited, M/s Global Affiliate Business (GAB), VIPs Securities, and VIPS Properties, among others, to carry out unlawful financial operations.

Funds collected from investors were funnelled through shell companies and fake accounts to disguise the illicit transactions. These funds were then transferred out of India to Dubai through hawala operators, often using cryptocurrencies like USDT to avoid regulatory oversight and facilitate money laundering.

The ED alleges that the proceeds of the crime, amounting to over $13.9 million (Rs 100 crore) based on their investigation, were utilized by Vinod Khute for personal expenses, company management, and property acquisitions in Dubai and India.

Previously, the ED conducted searches in various locations in Pune, Ahmedabad, and Mumbai related to Vinod Khute, resulting in the freezing of $2.77 million (Rs 23 crore) in bank balances and cash under the provisions of FEMA, 1999.