OctaFx had become a very popular platform in India. It gained traction through aggressive promotions including sponsoring an IPL team, and engaged various production agencies for influencer marketing. Payments to these production agencies were made as foreign inward remittances, through two Estonia-based companies, both are related entities of OctaFx and controlled by Pavel Prozorov
ED attached Pavel’s Spanish assets valued at Rs 42 crore after collecting their details and plans to enforce the attachment order in Spain through Mutual Legal Assistance Treaty. OctaFx has no office or any base in India, but is conducting business in the country, said ED. Pavel, collaborating with Russian partners and two non-resident Indians, used OctaFx’s forex trading application to mislead investors with promises of high returns. ED’s probe showed OctaFx illegally transferred fraudulently earned profit internationally using false import documents through mule accounts (provision by shell firms-individual charging commission)
The investigation began after an FIR was filed by Shivaji Nagar Police Station in Pune in December 2021. The ED’s probe revealed that OctaFx had promised high returns to investors through forex trading but manipulated trades to generate losses for them. The company allegedly diverted the investors’ funds to shell accounts and entities disguised as e-commerce platforms.
The ED also discovered that OctaFx frequently changed its website URLs to avoid detection and continue its fraudulent activities. The funds were transferred abroad under the guise of fake imports and freight services. The platform used Estonian entities, linked to the alleged mastermind Pavel Prozorov, to pay for influencer marketing and sponsorships, including promotions for an IPL team.
So far, the ED has seized assets worth Rs 165 crore, including 19 properties in Spain owned by Prozorov. On December 24, 2024, the Special PMLA Court in Mumbai took cognisance of the ED’s prosecution complaints against OctaFx.
Pavel, collaborating with Russian partners and two non-resident Indians, used OctaFx’s forex trading application to mislead investors with promises of high returns. The ED’s investigation showed OctaFx illegally transferred fraudulently earned profit internationally using false import documents through mule accounts (provision by shell firms-individual charging commission).
According to the ED’s chargesheet, OctaFx’s CEO Anna Rudaia, who managed Indian operations, fled from India through illegal routes last year when investigations into her organisation began, as there was a look-out circular against her. The chargesheet lists 13 individuals and 41 companies. Many of the firms are based abroad and under the control of Pavel and an Indian-based dubious e-commerce firm and individuals who had provided mule accounts.
No comments:
Post a Comment