By Suresh Unnithan
“Kerala has become a safe haven for swindlers. Fiscal fraudsters are flourishing and have a free run in the state. The scamsters involved in the multibillion fiscal fraud are roaming free. These cheats have fleeced millions and dodge the law.” These are the words of an advocate in Thiruvananthapuram dealing with economic offences.
The infamous Highrich money scam in which millions of investors lost their hard earned money is the latest example on how the fraudsters manage safe exit, dodging the law. According to the informed sources the Highrich fraud is yet to be unfolded in full and the total money swindled is likely to cross half a trillion. The superstars of the scam, the husband and wife duo- K D Prathapan and Sreena, are merrily flying around, scouting new “investors”, and they are little perturbed on “the Law taking its course.”
The on-going investigations suggest that the enormity of the Highrich fiscal fraud is yet to be entirely unfolded. As per the documents and classified information privy to this correspondent the scamsters have tricked even the national fiscal and money market regulators including RBI and SEBI.
The Highrich scamsters have shored massive money through sale of Mortgage Capital Bonds and bitcoin trade. It’s a million-dollar question how such Bonds issued by the Highrich scamsters escaped the “eagle eyes” of the national and state investigating agencies including the ever vigilant ED and CBI?
As per the documents gathered by this correspondent, the Highrich fraud cannot be and should not be discounted as any minor online money scam with little consequences. This scam is deeper and wider and has potential to startle the economy of the state, because the victims of the scam are mostly from the low income group including daily wage workers, private employees and lower grade government servants. They have been lured by assuring high returns, doubling their money in just six months.
The Highrich scamsters had money-spinning offers for all- from farmers to traders and commodity, stock and currency traders. According to an estimate the scamsters could lure to their net over 25 million investor from across the country, each investor depositing a minimu 10,000 rupees to Highrich account
The Highrich scam spans from dubba operations to illegal crypto currency and bullion trade. The dealings are primarily in cash, because the deals were illegal and done on an unregulated platform.
Sreena, co-founder of Highrich and wife of company owner Prathan in a video is heard trying to convince and lure prospective “clients” into bitcoin and dabba trading saying “the Highrich cryptocurrency value has jumped four times, from two USD to eight USD in six months. In the same video a few voices were heard acknowledging her claims. This proves Highrich was into illegal money and forex trading which is a serious and nonsalable economic offence. According to a new Bill introduced in Parliament this is an offence that could be treated as an anti national activity and punished accordingly.
The illegal financial dealings like collecting huge deposits without licence from the money market regulators is an economic crime that needs to be investigated under relevant sections of Money laundering act (PMLA) by central investigating agencies like ED, CBI , Financial Intelligence Unit (FIU) of the Union Finance Ministry and Serious Fraud Investigation Office (SFIO).
To cover up the illegal financial operations, Highrich often organizes public and entertainment events in which celebrities and VIPs are facilitated. On November 26 this year such a function was held in a five star facility in Ernakulam in which tinsel star turned BJP leader Suresh Gopi and many silver screen celebrities like Jayasoorya and Nadir Shah performed.
Highrich management also knows how to mollify the media. They release advertisements worth millions to the print and visual media and also organise entertainment trips and pricey gifts for journalists. According to a source “the quality and quantity of the gift depends on the guest they chose to entertain”. Recently Highrich had released a full front-page advertisement to a leading Malayalam daily in Kerala. The same daily, as per the voice clip from one of the agents “published the news on our case (scam) in a remote corner without any significance. Now, the paper has totally ignored the news on our cases. But we need to deal with those who try to write ill about us and deal with those lodging complaints against us.” The voice was also heard saying “we have been taking care of the entire media. So there will not be any threat from them. Those bloggers and individual news portals managed, if force is to be used, we need to use it. We need to fill their comment boxes with choicest abuses. Identify those who are against us, abuse and attack them.”
According to an insider Highrich has over 69 bank account agents operating in 15 States, Mostly in the Northern part of the country.
They sell capital investment bonds of Rs 5 lakh per investor in these states. They have sold such bonds to over 5,00,000 investors across the country. “The offer from Highrich is so seducing that you may organize the money and deposit with them in no time, without a second thought. Highrich pledges the “investors” to double their money in less than one year and in in some cases even in six months. The inverters who enroll others in the scheme are offered fabulous cash incentives- Rs 200 per every 10K investment.
After the news of the scam started spreading, the investors goot panic and started approaching the company demanding withdrawal of their deposits. Some of the investors approached the Highrich agents who roped them into various deposit schemes have shared their bitter experience in public.
Sudheesh, an unfortunate investor from Palakkad who deposited a sizable amount in the Highrich “scheme” when approached the concerned agent of the company was “threatened to physically harm me and my family”. According to Sudheesh a lady agent by name Gauri and a male “bouncer” called Nazeem “warned him with dare consequences if lodged any complaint with the police or any authorities.”.
Another agent was heard commanding (in a voice clip) Highrich family members to “deal “with on Mr Valsan from Kozhikode who had filed a criminal complaint with the local court. Valsan is a retired IPS officer and on his complaint the court ordered an investigation into the frauds of Highrich. Based on the police report, the competent authority ordered attachment of the properties of the company, movable, and immovable. Complying the order District collector Thrissur has frozen the bank accounts of the company and its directors and also attached their properties, both movable and immovables.
In a voice message to the depositors Sreena was herd pacifying the depositors and requesting them to keep their cool. Sreena, the cofounder of Highrich and wife of the prime accused Prathapan was also requesting through the voice message “not to resort to any panic steps like lodging police complaints.”
Several victims, as per informed sources, have lodged complaints at different police stations in the state.
Sudheesh has lodged a complaint against the company for cheating and its agents for criminal intimidation and threat to life.
Anil Akkara, a former lawmaker and frontline warrior against corruption believes “without tacit support of those in power the scamsters cannot survive. Here in the case of Highrich also scamsters have such support and that is why they dare to threaten the depositors who demand their money back.” Citing the delay in implementing the order of the competent authority for seizure of the properties and bank accounts of the scamsters, Anil Said, ” the inordinate delay from the authorities to take action on the competent authority tells aloud the live link of the culprits of the mega fraud with those in power. The scamsters have right connections and that is why they are moving around free without the fear of law. “
However Anil said “since the state police is maintaining unusual silence in this multi-billion fraud I am approaching central investigating agencies, CBI and ED for a detailed probe. I am determined to fight until the culprits are booked justice delivered to the victim scam
A retired IPS officer who served the state police for decades in various capacities also felt “the investigation is lacking enthusiasm. The delay in implementing the order of the competent authority as per BUDS act is suspect. The delay seems to be deliberate to facilitate escape routes for the scamsters. delays in execution of such critical orders can prove counterproductive to the investigation process Those instrumental in the delay need to be booked and punished. “
According to the police officer there are stringent laws, both enacted by the Centre and the state, “but the laws are often ignored or scuttled to pave escape routes to the scamsters, money swindlers and fraudsters. Higrich is not the first or the last money chain case. Kerala has reported hundreds of such cases and hardly any of these fraudsters were properly punished. These money swindlers have reined millions of lives and they still continue to swindle. Unless proper political will is exercised, without any considerations. Such frauds will continue cheating the public unabated. “
