In a major financial scam, the Enforcement Directorate’s prosecution complaint (PC) revealed how approximately Rs 4.35 crore, invested through fake pharmaceutical and financial advisory shell companies, was allegedly used to establish Torres Jewelry, a fraudulent firm involved in a Rs 177 crore scam.
In a major financial scam, the Enforcement Directorate’s prosecution complaint (PC) revealed how approximately Rs 4.35 crore, invested through fake pharmaceutical and financial advisory shell companies, was allegedly used to establish Torres Jewelry, a fraudulent firm involved in a Rs 177 crore scam. The investigation has unearthed a vast network of shell firms, dummy investors, and bogus investments linked to an absconding Ukrainian national.
The case exposes how a relatively small initial investment was leveraged to orchestrate a massive financial fraud, highlighting the sophisticated modus operandi behind cross-border money laundering.
According to the ED’s findings, At the core of the scam is Lallan Jamedar Singh, who allegedly controlled two key shell companies M/s Astrozen Pharma Pvt Ltd and M/s Prisah Advisory Pvt Ltd. which illicit funds were funneled into M/s Platinum Hern Pvt Ltd, the front company behind Torres Jewelry’s fraudulent operations.
According to the ED PC, Singh acted as a frontman for Oleksandr Zapichenko alias Alex, laundering Rs 45 lakh via M/s Astrozen Pharma Pvt Ltd, and Rs 3.9 crore via M/s Prisah Advisory Pvt Ltd by routing the funds as investments into M/s Platinum Hern Pvt Ltd. This company served as the front entity behind the fraudulent operations of Torres Jewelry. The funds were layered through bogus investments across multiple levels to conceal their true origin.
These funds were layered through bogus investments to mask their origins, enabling the setup of six showrooms across Mumbai, including prime locations in Mira-Bhayandar and Navi Mumbai. The ED further revealed that the funds were also spent on renting commercial spaces, purchasing artificial jewelry, gemstones, and luxury items such as Toyota cars, iPhones, and laptops. These items were often distributed through “lucky draws” to create an illusion of a legitimate and attractive business.
The complaint further alleges that Singh facilitated the conversion of cryptocurrency (USDT) sent by Zapichenko into Indian rupees, integrating the illicit proceeds into the formal economy under Torres Jewelry’s cover. Singh has reportedly admitted during interrogation that he provided accommodation entries using multiple entities under his control. The prosecution complaint names Singh, the shell companies, and several other co-accused already in custody.
The ED has also named Tausif Riyaz, CEO of Platinum Hern Pvt Ltd, and Chartered Accountant Abhishek Gupta as active accused participants in the scam.
Riyaz, allegedly appointed as CEO by the Ukrainian accused, was actively involved in the company’s formation and financial operations. He was also found carrying cash for Lallan Singh, further strengthening the investigative agencies’ case and linking key players to the financial misappropriation.
According to the ED’s complaint, Tausif Riyaz played an active and central role in the company’s day-to-day operations, including facilitating its incorporation alongside foreign nationals. He was directly involved in financial dealings, receiving cash commissions and payments disguised as loans with TDS deductions indicating they were actually commissions. He also facilitated the cash conversion of digital assets through third-party intermediaries. These actions reflect his deep involvement in both the operational and financial aspects of the company, including potentially illicit transactions and proceeds of crime.
According to the ED prosecution complaint (PC), Chartered accountant Abhishek Gupta has also been booked in the case for his active role in concealing the fraud. Gupta not only helped register Platinum Hern Pvt Ltd with the Registrar of Companies on April 7, 2023, but also remained in constant contact with both the arrested and absconding accused. As the statutory auditor, he failed to report glaring financial irregularities and continued to aid the laundering process, a serious breach of professional conduct, as per ED findings.
