Mumbai Cybercrime Police Stop Online Loan Application Racketeering and Issue LOC Against Two Chinese Kingpins in Fake Loan Application Case
Fake Loan Apps Cybercrime is on the rise with reckless fraudsters without fear of the law carrying out the illegal activity.
It was only last month that the city’s cybercrime police arrested and unmasked frsudsters in a pan-India Rs 350 crore loan application racket that has been defrauding lakhs since 2018.
In a new development on Thursday, a Watch Circular (LOC) was issued against two Chinese national Kingpins and a few other foreigners who are its creators and planners.
Notably, 200 fake loan apps were picked up on social media platforms by Chinese nationals and a few foreigners following the arrest of 14 defendants who identified them in the photos.
In fact, in Mumbai alone, 29 cases have been recorded of pan-India loan app “collection agents” who extorted lakhs from those who accessed small loans through threats or even the distribution of their transformed nude photographs and their pornographic videos among their telephone contacts and on social networks.
In their investigation, the police gained access to 350 paper companies, all registered in a residential building in Bengaluru which opened 360 bank accounts with the use of Aadhar and PAN card details which the victims shared when applying. loan.
The arrested defendants had established at least four such paper companies. They received 30,000 to 35,000 per month for using their names as directors of these “companies”.
According to the police, the arrested defendants would place the extortion money in these accounts. Subsequently, these funds would then be converted into cryptocurrency and transferred to China. An amount of Rs 350 crore, around Rs130 crore alone, was received through the ‘Cash Free’ app operated by Malad’s Sneha Somani who was in charge of loan disbursement.
The alleged kingpins – Luwenjie Andy and Crysten were operating from China. Liyang Sheng (39), one of the arrested defendants, is said to have run some paper companies in Bengaluru.
The Chinese nationals met Liyang in Bengaluru and he helped them set up paper companies under the names of Water Elephant Financial Services and Methitech Private Ltd with the use of fake documents.
According to police cops, they have cracked the pyramid of loan rackets. Planning and execution began in 2018, two years before the Covid outbreak. These Chinese masterminds left India in 2020 after laying the groundwork for racketeering in the metros and then moved on to Tier 2 cities.
According to the police, they started with small call centers and employed people who worked in shifts with appropriate salaries and incentives.
In order to put up the nameplate of the racket, they paid high rent to the companies, the building in Bengaluru for the use of its address and premises to put up the nameplates of the companies.
Police learned from the 14 defendants that at least 1,000 transactions, ranging from 2,000 to 5,000 rupees each, would be credited daily to a single account. The arrestees said that in each of the 360 accounts, the balance shows Rs 6 crore to Rs 7 crore transacted every three days.
The money allowed them to buy cryptocurrency which they kept in crypto wallets, to facilitate the transfer of funds to foreign countries.
Under the instructions of Police Commissioner Vivek Phansalkar, Suhas Warke, Co-Commissioner of Police (Crime) led a team of DCP (cyber) Hemraj Singh Rajput, Senior Inspector Suvarna Shinde, Inspector Prakash Warke and the team cyber detection to learn suo motu of the 29 cases in 2022. Following a breakthrough, the first accused to be arrested was Sudhakar Reddy (25) on June 26; the 14th arrest took place on July 13.
List of arrested defendants:
Ovez Salim Ahmed
Vipul Shankar gawda
Sanjay veer bhan arora
Ajay Kumar Aaron Kumar
Liyang chi sheng
The cyber cell registered all the accused under various sections of the IPC 419′ 420467,468, 471′ 384′ 120 +B), 509;506,500, 34 67 .67 (A)
Cyber Cell team successfully conducted this operation under the leadership of DCP Hemraj Sing Rajput, ACP Cyber Cell Ramchandra Lotlikar, Senior PI Suvrna Shinde, Pi More, Prakash Vaske, Savita Shinde, Mausmi Patil, Mangesh Desai and all Cyber Cell personnel.
News editing: KVRaman