The Enforcement Directorate (ED) has named a Russian national Pavel Prozorov as the principal accused in the operations of OctaFx. This forex trading platform allegedly defrauded Indian investors with Rs 800 crore.
The Mumbai ED filed a prosecution complaint against OctaFx, under the Prevention of Money Laundering Act (PMLA) Act. This followed an investigation based on an FIR registered on December 8, 2021, by Shivaji Nagar police station, Pune, against multiple individuals involved with the firm.
The investigation revealed that OctaFX, owned by the 42-year-old Russian, was at the centre of a fraudulent scheme that involved collecting funds from Indian investors under the pretence of Forex trading, to Rs 800 crore, from its operations in India within nine months.
According to the ED, the forex trading platform manipulated trade activities, inducing huge losses for Indian investors. The ED also alleges that OctaFX diverted the defrauded funds into accounts and e-wallets owned by dubious entities.
The ED claims that OctaFX’s platforms frequently changed their login URLs and web addresses, to “obscure fraudulent activities from investors.”
The ED found that OctaFx utilized fin-tech employees to create mule accounts linked to shell companies
and fake e-commerce websites, to obtain payment gateway access to route the investor money abroad, by faking imports and freight services.
The company smashed its way into the Indian market through aggressive marketing, including, sponsoring an Indian Premier League (IPL) team, and engaging in paid endorsements with various influencers and celebrity personalities.
The Enforcement Directorate has so far conducted multiple searches in multiple locations and has attached and seized assets worth Rs 165 crore approximately, including 19 immovable properties in Spain, owned by Pavel Prozorov.
According to the UK government’s company directory, Pavel Prozorov lives in Spain, and his company registered in the UK, by the name OCTA Markets UK LTD has a dissolved-company status.
