CBI filed a chargesheet against 17 accused, including 4 foreign nationals, and 58 companies for a large-scale cyber fraud. The syndicate used shell firms to route over Rs 1,000 crore from scams like fake loan apps and investment schemes.
The Central Bureau of Investigation (CBI) has filed a chargesheet against 17 accused persons, including 4 Foreign nationals, and 58 companies, after unearthing a large, well-organised transnational cyber fraud network operating across multiple States in India, the CBI said in a press release.
In October, 2025 the three main Indian associates had been arrested. The investigation has revealed how a single coordinated syndicate created an extensive digital and financial infrastructure to defraud thousands of unsuspecting citizens through misleading loan apps, fake investment schemes, Ponzi and MLM models, bogus part-time job offers, and fraudulent online gaming platforms.
The case was registered on the basis of inputs received from 14C, Ministry of Home Affairs, which indicated that large numbers of citizens were being cheated through online investment and employment schemes. Though initially appearing as isolated complaints, detailed analysis by CBI revealed striking similarities in applications used, fund-flow patterns, payment gateways and digital footprints, pointing towards a common organised conspiracy.
Uncovering a Sophisticated Fraud Network
Investigation revealed that the cyber criminals adopted a highly layered and technology-driven modus operandi, involving the use of Google advertisements, bulk SMS campaigns, SIM-box based messaging systems, cloud infrastructure, fintech platforms and multiple mule bank accounts. Each stage of the operation-from luring victims to collection and movement of funds-was deliberately structured to conceal the identities of the actual controllers and evade detection by law enforcement agencies.
Use of Shell Companies and Layered Transactions
CBI's investigation exposed the backbone of the fraud network in the form of 111 shell companies, incorporated using dummy directors, forged or misleading documents, fake addresses and false statements of business objectives. These shell entities were used to open bank accounts and merchant accounts with various payment gateways, enabling rapid layering and diversion of proceeds of crime.
Analysis of hundreds of bank accounts revealed that more than Rs 1,000 crore was routed through these accounts, with one account alone receiving funds exceeding Rs 152 crore within a short span.
Investigation Reveals Foreign Control
Searches were conducted at 27 locations across Karnataka, Tamil Nadu, Kerala, Andhra Pradesh, Jharkhand and Haryana. During these searches, CBI seized digital devices, documents and financial records, which were subjected to detailed forensic examination.
The analysis revealed extensive communication links and operational control by Foreign nationals directing the fraud network from abroad. Significantly, a UPI ID linked to the bank accounts of two Indian accused was found to be active in Foreign location as late as August 2025, conclusively establishing continued foreign control and real-time operational oversight of the fraud infrastructure from outside India.
The Masterminds Behind the Conspiracy
The investigation established that, from 2020 onwards, shell companies were incorporated in India at the instance of Foreign handlers, namely Zou Yi, Huan Liu, Weijian Liu and Guanhua Wang. Their Indian associates procured identity documents from unsuspecting individuals and used them to incorporate companies and open bank accounts. These entities were then systematically used to channel proceeds of cyber frauds, which were layered through multiple accounts and platforms to obscure the money trail and final beneficiaries.
Chargesheet Filed, Prosecution Launched
CBI has charge-sheeted the four Foreign masterminds, their Indian associates, and 58 companies involved in the conspiracy. Prosecution has been launched against the accused persons under Criminal Conspiracy, Forgery, use of Forged Documents and Banning of Unregulated Deposit Schemes Act, 2019. This case forms part of CBI's sustained action under Operation CHAKRA-V against organised and transnational cyber-enabled financial crimes. (ANI)
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