The Enforcement Directorate (ED), through its Dimapur Sub Zonal Office, has submitted a supplementary prosecution complaint to the Special Court (PMLA), Dimapur regarding the HPZ Token scam, invoking the Prevention of Money Laundering Act (PMLA), 2002. The investigation was triggered by an FIR from the Cyber Crime Police in Kohima on October 8, 2021, and linked to additional FIRs from CID in Guwahati and CBI in Delhi. The ED’s findings reveal a widespread investment scam, where numerous unsuspecting investors were defrauded by being promised high returns through the HPZ Token App.
The investigation uncovered significant fraudulent activity, including the utilization of mule accounts, shell companies, and deceptive directors, all designed to launder the Proceeds of Crime (POC). The POC was traced from victims to the primary suspects, including Bhupesh Arora. Investments were gathered using various UPI IDs linked to mule accounts at ICICI Bank, and the proceeds were funneled through multiple shell companies which misused payment aggregator services such as PayU and Easebuzz. A small portion of the POC was returned to investors to build trust and encourage greater investment.
Further analysis indicated that funds were transferred into the accounts of Shigoo Technology Private Limited and Lillian Technocab Private Limited, which subsequently dispersed the POC to various other dubious entities controlled by Bhupesh Arora and his associates. He has previously been arrested by ED on similar fraud charges tied to another counterfeit investment app. The ED’s chargesheet outlines a comprehensive scheme of deceit relying on financial manipulation and misrepresentation, targeting a large number of investors nationwide.
