ED arrests APS Wealth Ventures chief in Rs 89-crore investor fraud case

The Enforcement Directorate (ED) has arrested Avinash Arjun Rathod, the person behind APS Wealth Ventures LLP, in connection with an alleged investment fraud involving around Rs 89 crore of investors' money. The agency arrested Rathod on November 2 under the Prevention of Money Laundering Act (PMLA), 2002, following an investigation into the alleged diversion and laundering of funds collected through investment schemes.

A special PMLA court in Mumbai remanded Rathod to ED custody until November 4 to facilitate further investigation into the money trail and identify other people and entities allegedly involved in the case.

The investigation stems from an FIR registered by Pune's Chaturshrungi Police Station against Rathod and others over allegations that investors were induced to put money into APS Wealth Ventures LLP and associated entities with promises of assured returns.

587 INVESTORS PUT RS 157 CRORE INTO SCHEME

According to the ED, the investment scheme promised monthly returns of approximately 5 per cent as profit, along with repayment of 5 per cent of the principal amount over 20 months.

The case was subsequently transferred to the Economic Offences Wing (EOW) in Pune. The agency's investigation has found that around 587 investors collectively invested approximately Rs 157 crore in the scheme, of which nearly Rs 89 crore was allegedly not returned.

ED TRACES FUND TRANSFERS THROUGH MULTIPLE ACCOUNTS

The ED investigation has identified Rathod as the principal person controlling the affairs of APS Wealth Ventures LLP. He held approximately 90 per cent ownership in the firm and was responsible for its day-to-day operations and financial decisions, including the management of its bank accounts, the agency said.

The agency has found that money collected from investors was routed through multiple bank accounts belonging to APS Wealth Ventures LLP and its associated entities, including APS Smart Gain LLP.

An analysis of banking records and financial transactions revealed substantial transfers between these accounts. Investigators have also identified transactions involving Rathod's personal bank accounts, including transfers to various individuals and investments in securities.

The ED is examining these transactions to establish how the funds were ultimately used and identify their beneficiaries.

ED EXAMINES ALLEGED DUBAI INVESTMENT OPERATIONS

The agency is also examining allegations that Rathod and his wife left India for Dubai in April 2023. According to the allegations being investigated, Rathod subsequently offered similar assured-return investment schemes through Wealthpro Investment Consultant LLC, a Dubai-based entity owned by him.

The ED is now questioning Rathod to establish the complete money trail, trace assets allegedly acquired using the proceeds of crime and identify other individuals and entities that may have played a role in the suspected laundering of funds.

Further investigation is underway.