The Enforcement Directorate has conducted searches at eight locations across Tamil Nadu and Kerala in connection with its money laundering investigation into the alleged ₹100-crore-plus Dream Makers Global Pvt Ltd Ponzi and multi-level marketing scam. The searches were carried out on June 30 under the Prevention of Money Laundering Act, 2002.
Searches Across Two States
The raids were conducted at premises in Coimbatore and Krishnagiri in Tamil Nadu, and Malappuram and Thrissur in Kerala. The ED initiated its investigation on the basis of an FIR registered by the Economic Offences Wing of the Tamil Nadu Police under provisions of the Indian Penal Code.
According to the agency, the case involves scheduled offences under the PMLA. Investigators are examining the alleged collection of funds from thousands of investors through promises of high returns.
Investors Promised Double Returns
The investigation alleges that Dream Makers Global Pvt Ltd and its key functionaries, S. Sathish Kumar, Gunavathy and Mugunthan Nair, collected large sums from investors on the pretext of investing in software projects. Investors were allegedly promised high daily returns and assured that their money would double within 150 days.
The ED alleged that the company initially paid returns to some investors to build confidence and attract more participants. The scheme later defaulted on payments, causing losses to thousands of depositors.
Documents and Digital Records Seized
The agency alleged that proceeds of crime were disguised as “returns” and “commissions” and later used to acquire immovable properties, vehicles and other personal assets. Investigators have identified bank accounts, fixed deposits and other financial instruments linked to the accused and their associates, some of which had already been frozen by other law enforcement agencies.
During the searches, the ED recovered and seized incriminating documents, diaries, digital records and property-related papers allegedly linked to assets purchased using commissions received from DMGPL.
Officials said the seized material will help trace the flow of funds, identify additional assets and examine the wider money laundering network. A researcher at Algoritha Security said Ponzi and MLM frauds increasingly use digital payments, social media promotions and online channels to attract investors with unrealistic return promises.
