#hawala money

[escapedaudios]

Fun fact: All the money laundering techniques mentioned in The New Jersey Rats are real techniques used by criminal organizations, including the Colombian Cartel and the Mafia. Besides the gold casting technique, Jean also mentions using hawalas for overseas money laundering. He also briefly mentions exploiting blind spots the Colombian Peso Exchange to launder money. All of these are real criminal methods!

[langernameohnebedeutung]

i have a question that i've kind of felt embarrassed to ask anywhere but i guess i'm shooting my shot here - do you happen to know how the gofundme fundraisers for gaza work? like, how do people get the money into gaza (since gfm only supports direct withdrawals in 20 western countries)? is it a hawala system or...?

I'm afraid that I also have very little insight into how it works exactly (and tbh, with so many gofundmes I don't know if they all do it the same way, especially with how quickly the situation is deteriorating).

I only understand that there's people outside of Gaza who set up the gofundmes for their family members or friends or other trusted people (because gofundme doesn't operate in Gaza) and then forward the money directly to the recipients or another contact person in the region, like Egypt. Someone on reddit mentioned that it's either through existing bank-accounts and Paypal accounts based outside of Gaza (they mentioned Egypt) while another person said that this point, only cryptocurrency can get through (but again, that's what some guy on reddit said and I cannot verify whether this is true or not...)

[cybercrime-blogs]

Mahadev Online Betting Scam: Bollywood Celebrities and Pakistani Connections Under Scrutiny

MUMBAI: The Enforcement Directorate (ED) has initiated an extensive investigation into the Mahadev Online Betting scandal, revealing a complex network of money laundering activities that extend far beyond the realm of online betting. This case has taken an intriguing turn, with the involvement of UPI IDs, implicating well-known personalities, celebrities, and even political contributions.

The Mahadev Online Betting Scandal: A Brief Overview The spotlight has turned to Mahadev, an online betting application, founded by Saurabh Chandrakar and Ravi Uppal hailing from Bhilai, Chattisgarh. The ED has cast a sharp eye on this platform, alleging that it served as a hub for illicit betting websites. It facilitated new user registrations, generated User IDs, and funneled funds through a convoluted network of anonymous bank accounts.

Also Read: Kashmiri Brother-in-Law could not show Kamal, and pressure on Nagpur police failed

Extensive Raids and Compelling Evidence In a recent series of coordinated raids conducted in cities like Kolkata, Bhopal, and Mumbai, the ED has unearthed substantial evidence and frozen/seized assets totaling an astounding Rs 417 Crore. According to the ED, Chandrakar and Uppal orchestrated the operations of Mahadev Online Betting from a central headquarters located in the UAE. They employed a franchising model, establishing "Panel/Branches" for their associates, with profit-sharing arrangements set at a 70:30 ratio.

A deeply troubling aspect of this scandal revolves around the exploitation of vulnerable communities, specifically slum residents and those with limited incomes. It appears that individuals implicated in this alleged scam acquired UPI (Unified Payments Interface) details from these unsuspecting individuals, effectively using them as pawns in money laundering schemes. In return for the use of their UPI IDs, these victims were given meager sums, while the ill-gotten funds were channeled to foreign entities. The Enforcement Directorate (ED) is currently conducting a thorough investigation to determine the full scope of this fraudulent activity and quantify the amount of money that has been laundered through this deceptive modus operandi.

Lavish Wedding Expenditure Raises Concerns

Recent ED raids conducted in Bhopal, Mumbai, and Kolkata have brought to light the extravagant lifestyle of the primary accused, Saurabh Chandrakar. Astonishingly, it was revealed that he lavishly spent over Rs 200 crore on his wedding ceremony in the United Arab Emirates (UAE). Shockingly, reports suggest that the funds for this opulent celebration were sourced from the proceeds of criminal activities.

Private jets were chartered to transport family members from Nagpur to the UAE for the wedding festivities, and renowned celebrities were hired for special performances. An array of wedding planners, dancers, and decorators were flown in from Mumbai, with cash payments facilitated through clandestine hawala channels.

Also Read: Cybercrime in Nagpur - Cyber Blackmailer Couple Arrested in Pune for Extorting Money

Celebrity Involvement and Suspicions of Proceeds from Illegal Activities

The ED's ongoing investigation has also implicated several prominent celebrities who endorsed these betting entities. These celebrities not only lent their names to these platforms but also participated in various events organized by the app promoters and other individuals accused in this case. Payments to these celebrities were routed through intricate transactions, ultimately sourced from the proceeds of online betting activities.

The list of celebrities under scrutiny includes well-known figures such as singers Atif Aslam, Rahat Fateh Ali Khan, Neha Kakkar, Vishal Dadlani, actor Tiger Shroff, Elli Evram, Bhagyashree, Pulkit Samrat, Sunny Leone, Kirti Kharbanda, Nushrat Bharucha, and comedians Bharti Singh, Krishna Abhishek, and Ali Azgar.

In conclusion, this disturbing scandal not only highlights the exploitation of vulnerable populations but also shines a light on the extravagant spending habits of key individuals involved. The web of celebrity endorsements and the suspected use of proceeds from illegal activities underscore the need for a thorough investigation into the matter, ensuring that justice is served and accountability upheld.

Source: https://www.the420.in/bollywood-celebrities-pakistani-connections-mahadev-online-betting-scam-ed/

[secretearthquakecheesecake]

Hawala trading, stock manupulation, stock parking, money laundering, tax fraud, accounting fraud..

‼️In NEWS: National, International, & In Social media 📺‼️

[wnscompany]

Navigating the High Stakes: Essential AML Strategies for Modern Casinos

The gambling industry is experiencing a boom like never before, with both physical casinos and online platforms witnessing rapid growth. By 2023, the global casino and online gambling market reached an astounding USD 263.3 billion, with online gambling alone expected to hit USD 136.30 billion by 2029. While this expansion presents enormous opportunities, it also opens the door to significant risks, particularly in the realm of money laundering.

Casinos, due to their cash-heavy nature, have long been targets for criminals seeking to “clean” their illicit funds. As gambling expands globally, money laundering activities have increased in tandem, especially in regions where online gambling is on the rise. For this reason, Casino AML compliance (Anti-Money Laundering) is more critical than ever, as regulatory bodies worldwide tighten their scrutiny and enforcement.

Why Casinos Are Attractive to Money Launderers

The sheer volume of cash transactions, the anonymity that gambling can provide, and the potential to blend illicit funds with legitimate winnings make casinos prime environments for money laundering. Criminals often exploit loopholes in casino operations through techniques like cash-in, cash-out strategies or by leveraging underground banking systems such as the Hawala network.

In Europe, the UK gambling market alone was valued at GBP 14.3 billion in 2023, and across the Atlantic, the U.S. is seeing a surge in gambling activities following the federal legalization of sports betting. In this increasingly complex legal landscape, casinos are being designated as "financial institutions" under regulations such as the Bank Secrecy Act (BSA) in the U.S., making them legally obligated to implement robust AML measures.

The Three Stages of Money Laundering in Casinos

To understand how money laundering takes place in casinos, it’s important to break it down into its three main stages:

Placement of Funds: This is where the dirty money enters the gambling system. Fraudsters may buy chips with cash, or place bets online, making it difficult to distinguish between clean and illicit funds.

Layering of Transactions: Launderers aim to obscure the origin of their money by engaging in numerous small transactions, placing multiple bets, or moving funds across different accounts. This complex web makes tracking the original source of funds challenging.

Integration: Once the funds have been successfully laundered, they are reintroduced into the legitimate economy. The "clean" money can be cashed out as gambling winnings or used to purchase assets, making the illegal funds appear legitimate.

The Importance of Casino AML Compliance

To combat money laundering, casinos must adhere to the same rigorous AML regulations as financial institutions. Since 1985, U.S. state-licensed casinos have been required to comply with the BSA, which mandates comprehensive reporting and record-keeping. Regulatory bodies such as the Financial Crimes Enforcement Network (FinCEN) in the U.S., and the Financial Action Task Force (FATF) globally, have set stringent AML standards that casinos must follow.

Failure to comply with these regulations can result in severe penalties. For example, Crown Resorts, a major Australian casino operator, was fined AUD 450 million in 2023 due to its lack of effective AML controls for high-risk patrons.

Four Best Practices for Ensuring Compliance

To stay ahead of the curve, casinos must adopt dynamic strategies that balance robust Anti-Money Laundering in gambling operations with customer experience. Here are four key AML best practices:

Enhance Internal Controls Through Risk Assessment: Conduct annual risk assessments tailored to your casino's business model, customer demographics, and location. AI and machine learning technologies can significantly boost the efficiency of internal controls, enabling quicker detection of suspicious activities.

Know Your Patron (KYP): Casinos must implement rigorous KYP procedures to verify the identities of their customers, particularly high-risk clients. Enhanced Due Diligence (EDD) is crucial in ensuring that patrons’ funding sources are legitimate and not linked to illicit activities.

Foster a Culture of Compliance: Employees should be trained regularly in AML protocols. With the gambling industry’s ever-changing regulatory landscape, staff must be well-equipped to detect and report suspicious activities.

Collaborate with AML Experts: Partnering with specialists can provide casinos with cutting-edge tools to manage AML compliance effectively. These experts can assist in identity verification, transaction monitoring, and compliance reporting, ensuring your operations are always in line with global standards.

Staying One Step Ahead

The battle against money laundering in the gambling industry is an ongoing one. Casinos must continually evolve their AML strategies to keep pace with new threats and regulatory changes. With the right combination of advanced technology, expert collaboration, and a strong compliance culture, casinos can effectively mitigate risks and protect their reputation in this fast-growing industry.

[24justicepress]

The Fintech Owner Accused of Laundering Drug Money in Huge Bitcoin Scheme

Caio Marchesani is alleged to have managed crypto accounts for a criminal gang

A fintech owner in London is facing allegations that he helped notorious drug traffickers attempt to launder hundreds of millions of euros through a crypto exchange platform on a scale rarely seen by European prosecutors.

Authorities in Belgium are seeking the extradition of Caio Marchesani from the UK as part of their effort to dismantle a transnational gang.

hoarding piles of cash for Sergio Roberto De Carvalho, a Brazilian described by Interpol as one of the world’s most wanted kingpins before his arrest in 2022, and managing crypto accounts on behalf of Flor Bressers, a Belgian national known as the “finger cutter,” who was also nabbed last year.

Marchesani owns Trans-Fast Remittance, a payments business regulated by the Financial Conduct Authority. He was arrested in May at Heathrow Airport.

The case puts the British financial-technology scene under fresh scrutiny amid fears that its weak controls are enabling the movement of illicit funds around the world. Transparency International UK has called for tougher supervision after finding that more than one-third of UK-licensed electronic-money institutions show red flags. In response to 24blognewspress queries, the FCA said it is “engaging” with Trans-Fast “as part of our ongoing supervisory work, including in relation to these matters.”

The Belgian investigation kicked off three years ago after Dutch customs officials seized more than 12 tonnes of cocaine, worth more than €260 million ($283 million), from containers at Europe’s busiest port, Rotterdam. Authorities traced the haul to Bressers and De Carvalho, later zeroing in on Marchesani after a breakthrough in decoding encrypted communications. 

In all, 33 suspects have been identified, linked to countries including Brazil, Hungary, the Czech Republic, and France — five are in pretrial detention, with Bressers and De Carvalho in Belgium and Marchesani in the UK. 

The case against Marchesani came to light at a series of extradition hearings in London. A request for bail was turned down by the court after prosecutors described him as a flight risk. The judge intends to rule on the extradition later in September.

‘Large Cash Sums’

Marchesani managed 14 Binance accounts for Bressers, according to Belgian prosecutors. He also held cash for De Carvalho, charging suspiciously high rates of as much as 9% for transferring funds, the prosecutors said.

As many as 85% of Trans-Fast customers were Brazilian, filings from a separate employment case show. A recorded company telephone message says it is currently offline and unable to process orders.

The underground network is alleged to have essentially combined new technology with hawala, a centuries-old money transfer system practiced in regions including the Middle East, where international and local remittances are paid largely based on trust. Its use of crypto currencies increased after the Covid pandemic made cash deliveries much harder, according to Belgium prosecutors. Binance provided law enforcement with “practical operational assistance” in relation to the investigation, a spokesperson for the crypto-trading platform said. 

Amanda Bostock, a lawyer acting for Belgium authorities, described Marchesani as “a dark banker who receives money and moves it around at the will of the criminal organization in order to disguise its origins.” 

“Very large cash sums” protected by a round-the-clock guard were said to have been stored at an apartment Marchesani rented near the US embassy in south London, prosecutors said. He was found with some £1.5 million ($1.9 million) of cryptoassets. The electronic wallet holding them was subsequently frozen. 

Marchesani’s lawyers deny the allegations. The money for Marchesani’s bail surety had legitimate origins from a UK company with a “thriving business focused on healthy eating in a cafe setting,” the judge said in a reference to Acai Berry Foods Ltd. of which Marchesani is the chief financial officer and a 50% shareholder. The prosecution’s case has “false, vague, ambiguous or inaccurate particulars,” his lawyers at Mishcon de Reya said. “What is clear however, is that none of the allegations against him relate to any of his business interests in the UK.”

Marchesani, who interned at Deutsche Bank from October 2013 to January 2014, wanted to convert Trans-Fast into an online bank according the employment case tribunal ruling. Companies House filings from August show another owner added to the registry. 

‘Everything is Criminal’

In an encrypted chat decoded by authorities, Marchesani, using the moniker ‘Greysmith,’ asked, “friend, this ted 60 is for crime or normal?” to which ‘Lucrativeherb’, a pseudonym prosecutors say was used by De Carvalho, replied, “Normal. Everything is criminal,” the Belgian law enforcers alleged. The judgment did not mention what ‘ted 60’ referred to. In another message, Marchesani is alleged to have said: “only risk is when the police are around.”

Bressers, who has a masters in criminology, was wanted on charges including kidnapping, gang drug trafficking and theft, and was arrested in February 2022 in Zurich. De Carvalho was nabbed in Hungary in June 2022 and transferred to Belgium by the air force earlier this summer. He was subject of an Interpol Red Notice, with countries including Brazil demanding his extradition for drug trafficking, money laundering, forging documents and murder in connection with organized crime.

The Belgian prosecutor said in a July letter to the UK, that nearly all the evidence has been collected and that she aimed to conclude the probe in early September. She said she’d already decided the case will go to a full criminal trial. A spokesperson confirmed the letter and declined to comment.

In London, Marchesani’s lawyers said they planned a further challenge to his extradition because investigators were presenting different cases at different moments. If convicted, Marchesani faces a maximum sentence of five years imprisonment in Belgium, a country his lawyers say he’s never visited.

[cryptonewshumstercoins]

Parimatch evades taxes by converting earnings into cryptocurrency

According to a GST investigation, gaming applications’ crypto-based revenue saw a 700 million rupee outflow from India.

The largest such network under investigation, Parimatch, is situated in Cyprus and even runs TV advertisements during regional sports leagues. One such network connected to Parimatch was recently demolished by the Directorate General of Goods and Services Tax Intelligence. The majority of these networks use multi-jurisdictional conversations and transactions to evade legal action.

Investigation of the matter of Parimatch

An alarming development is that Indian authorities are struggling to stop the spread of foreign gaming and betting platforms that use networks of shell companies and cryptocurrency exchanges to evade paying taxes in India.

According to a ToI article, Parimatch, a Cyprus-based organisation that even airs advertisements during regional sports leagues on television, is at the centre of one of the largest such networks under investigation.

A recent operation by the Mumbai-based Directorate General of Goods and Services Tax Intelligence (DGGI) resulted in the discovery and destruction of one such Parimatch-related network. The network was in charge of collecting Rs 700 crore from Indian gamers who used gaming apps, and the money was then transferred by converting it into bitcoin. According to a TOI report, the DGGI investigated the backgrounds of 350 people and 50 entities in Kolkata and monitored the operations of the network for months.

What helps with the illegal action? 

The majority of these gambling enterprises, with their headquarters in tax havens and operating illegally in India, use complex layers of communication and transactions spanning international borders. Dubai is crucial in enabling the flow of money via cryptocurrencies. Without formal contracts, the workers for these applications receive payment online. For instance, Parimatch only communicates with its contacts in India via email, phone calls, or anonymous people.

The director of an unregulated payment aggregator who made it possible for Parimatch’s customers to deposit money into shell companies has just been arrested by the DGGI. The collected money was subsequently transferred from the payment aggregator to the bank accounts of fictitious businesses. More than 400 bank accounts were frozen as a result of this.

Step taken by the Authorities

However, a significant percentage of these funds had already been converted from bank deposits to Bitcoin. The organization arrested a Mumbai-based cryptocurrency exchange operator for managing a group of fictitious firms with fake directors. The app’s operator disclosed that cryptocurrency had been created from the Rs 96 crore it had received from app users. The investigation, however, came to a standstill since the accused was unaware of the owner of the wallet where the cryptocurrency funds were sent. The defendant insisted that the entire operation was carried out in accordance with clear instructions obtained via phone conversations and emails from an “unknown person.”

The fake directors of the shell businesses, who were given pittances to act as the entities through which cryptocurrency was bought and transported abroad, were also questioned by the DGGI. 

The majority of these people were drivers, street vendors, or people in other roles who had exchanged a small amount for sharing their information with a book-entry operator who also handled hawala payments.The fictitious directors admitted they knew money was being transferred into their accounts or wallets using Parimatch apps. 

They claimed that video KYC of their family members were used for opening the accounts/wallets by the cryptocurrency exchange operator. They continued to be in the dark about the sums credited to their accounts and the people who received the transferred money.

The Accused person Identity

Unfortunately, the investigation has come to a standstill at this point.The DGGI has also tracked money sent to fictitious businesses with addresses in Kolkata. Before the DGGI could identify the person in charge of these shell businesses in Kolkata, it’s thought that they left the country. Authorities believe this individual turned the money into bitcoin before sending it abroad.Officials from the DGGI learned during their investigation that Parimatch had broadcast commercials with celebrity endorsements during live broadcasts of regional sports leagues. 

A senior executive from a television network informed DGGI representatives that they had signed an online agreement after receiving email instructions on how to run Parimatch advertising. Similarly, Parimatch instructed media management firms via email to recruit famous people for the advertising.

Next step of Authorities and precautions

Numerous such gaming and betting organizations are being intensively investigated by the Enforcement Directorate (ED). Many are thought to be functioning via shell firms set up in tax havens abroad. These businesses don’t have any physical locations in India and only connect via email, phone calls, or middlemen. 

According to sources, the Union Ministry of Home Affairs has been informed about this pattern and may decide to impose restrictions on certain apps and websites due to worries about national security.

Despite the availability of sophisticated tools created by Israeli businesses to track cryptocurrency movements within wallets, this initiative has had only sporadic success. 

Interoperability between blockchains enables users to access applications on other platforms and transfer cryptocurrency between exchanges, according to an expert experienced with such solutions. However, the expert pointed out, specialised techniques can still be used to track the movement of cryptocurrencies.

[24-daily-news-press]

The Fintech Owner Accused of Laundering Drug Money in Huge Bitcoin Scheme

Caio Marchesani is alleged to have managed crypto accounts for a criminal gang

A fintech owner in London is facing allegations that he helped notorious drug traffickers attempt to launder hundreds of millions of euros through a crypto exchange platform on a scale rarely seen by European prosecutors.

Authorities in Belgium are seeking the extradition of Caio Marchesani from the UK as part of their effort to dismantle a transnational gang.

hoarding piles of cash for Sergio Roberto De Carvalho, a Brazilian described by Interpol as one of the world’s most wanted kingpins before his arrest in 2022, and managing crypto accounts on behalf of Flor Bressers, a Belgian national known as the “finger cutter,” who was also nabbed last year.

Marchesani owns Trans-Fast Remittance, a payments business regulated by the Financial Conduct Authority. He was arrested in May at Heathrow Airport.

The case puts the British financial-technology scene under fresh scrutiny amid fears that its weak controls are enabling the movement of illicit funds around the world. Transparency International UK has called for tougher supervision after finding that more than one-third of UK-licensed electronic-money institutions show red flags. In response to 24blognewspress queries, the FCA said it is “engaging” with Trans-Fast “as part of our ongoing supervisory work, including in relation to these matters.”

The Belgian investigation kicked off three years ago after Dutch customs officials seized more than 12 tonnes of cocaine, worth more than €260 million ($283 million), from containers at Europe’s busiest port, Rotterdam. Authorities traced the haul to Bressers and De Carvalho, later zeroing in on Marchesani after a breakthrough in decoding encrypted communications. 

In all, 33 suspects have been identified, linked to countries including Brazil, Hungary, the Czech Republic, and France — five are in pretrial detention, with Bressers and De Carvalho in Belgium and Marchesani in the UK. 

The case against Marchesani came to light at a series of extradition hearings in London. A request for bail was turned down by the court after prosecutors described him as a flight risk. The judge intends to rule on the extradition later in September.

‘Large Cash Sums’

Marchesani managed 14 Binance accounts for Bressers, according to Belgian prosecutors. He also held cash for De Carvalho, charging suspiciously high rates of as much as 9% for transferring funds, the prosecutors said.

As many as 85% of Trans-Fast customers were Brazilian, filings from a separate employment case show. A recorded company telephone message says it is currently offline and unable to process orders.

The underground network is alleged to have essentially combined new technology with hawala, a centuries-old money transfer system practiced in regions including the Middle East, where international and local remittances are paid largely based on trust. Its use of crypto currencies increased after the Covid pandemic made cash deliveries much harder, according to Belgium prosecutors. Binance provided law enforcement with “practical operational assistance” in relation to the investigation, a spokesperson for the crypto-trading platform said. 

Amanda Bostock, a lawyer acting for Belgium authorities, described Marchesani as “a dark banker who receives money and moves it around at the will of the criminal organization in order to disguise its origins.” 

“Very large cash sums” protected by a round-the-clock guard were said to have been stored at an apartment Marchesani rented near the US embassy in south London, prosecutors said. He was found with some £1.5 million ($1.9 million) of cryptoassets. The electronic wallet holding them was subsequently frozen. 

Marchesani’s lawyers deny the allegations. The money for Marchesani’s bail surety had legitimate origins from a UK company with a “thriving business focused on healthy eating in a cafe setting,” the judge said in a reference to Acai Berry Foods Ltd. of which Marchesani is the chief financial officer and a 50% shareholder. The prosecution’s case has “false, vague, ambiguous or inaccurate particulars,” his lawyers at Mishcon de Reya said. “What is clear however, is that none of the allegations against him relate to any of his business interests in the UK.”

Marchesani, who interned at Deutsche Bank from October 2013 to January 2014, wanted to convert Trans-Fast into an online bank according the employment case tribunal ruling. Companies House filings from August show another owner added to the registry. 

‘Everything is Criminal’

In an encrypted chat decoded by authorities, Marchesani, using the moniker ‘Greysmith,’ asked, “friend, this ted 60 is for crime or normal?” to which ‘Lucrativeherb’, a pseudonym prosecutors say was used by De Carvalho, replied, “Normal. Everything is criminal,” the Belgian law enforcers alleged. The judgment did not mention what ‘ted 60’ referred to. In another message, Marchesani is alleged to have said: “only risk is when the police are around.”

Bressers, who has a masters in criminology, was wanted on charges including kidnapping, gang drug trafficking and theft, and was arrested in February 2022 in Zurich. De Carvalho was nabbed in Hungary in June 2022 and transferred to Belgium by the air force earlier this summer. He was subject of an Interpol Red Notice, with countries including Brazil demanding his extradition for drug trafficking, money laundering, forging documents and murder in connection with organized crime.

The Belgian prosecutor said in a July letter to the UK, that nearly all the evidence has been collected and that she aimed to conclude the probe in early September. She said she’d already decided the case will go to a full criminal trial. A spokesperson confirmed the letter and declined to comment.

In London, Marchesani’s lawyers said they planned a further challenge to his extradition because investigators were presenting different cases at different moments. If convicted, Marchesani faces a maximum sentence of five years imprisonment in Belgium, a country his lawyers say he’s never visited.

[newspatron]

Mahadev app scam: The dark side of online betting in India

We hope you enjoyed reading this article and learned something new about the Mahadev app scam and online betting in India. What are your thoughts on this topic? Do you have any questions or comments? Please share them with us in the comment section below.

editor@newspatron.comModus Operandi of the ScamVictims of the ScamOngoing Investigation and Legal ImplicationsBroader Implications of Online Betting and Money LaunderingPreventive Measures and AwarenessRead about the Cash For Questions ScamRead about Illegal Foreign Funding in IndiaHow to identify and avoid online betting scamsSafety TipsConclusion:Mahadev app scam: The dark side of online…

[werindialive]

CBI Accuses Kejriwal and AAP of Criminal Conspiracy in Excise Policy Case 

The Central Bureau of Investigation (CBI) has filed a supplementary charge sheet accusing Delhi Chief Minister Arvind Kejriwal and his party, the Aam Aadmi Party (AAP), of a criminal conspiracy to privatise the 2021 Delhi Excise Policy for financial gains. The CBI claims that the policy was specifically designed to benefit select liquor businesses in exchange for kickbacks, which were allegedly used to fund AAP’s campaign in the 2022 Goa Assembly elections. 

The investigation highlights that Vijay Nair, AAP’s media and communications head, played a pivotal role in the conspiracy. According to the CBI, Nair, without any formal authority to negotiate on excise matters, solicited bribes from liquor business owners under Kejriwal’s direct instructions. These businesses were promised favourable terms under the excise policy in return for their financial contributions. The CBI alleges that these funds were funnelled into AAP’s election expenditures and used to pay for campaign-related activities, including hiring vendors and campaign managers. 

Durgesh Pathak, a senior AAP leader, is also named in the charge sheet for managing these funds. The CBI claims that Pathak oversaw the transfer of bribe money through hawala channels, which allowed large sums to be distributed without leaving a clear financial trail. The charge sheet points out that these cash payments were deliberately omitted from AAP’s official election expense reports, raising concerns about the party's financial transparency. 

Several other high-profile AAP leaders, including former Delhi Deputy Chief Minister Manish Sisodia, have been implicated. Sisodia, who oversaw the excise department at the time, was previously arrested in connection with the case but has since been released on bail. Kejriwal, who has denied all allegations, has been in custody since March 2024. His bail plea is currently being reviewed by the Supreme Court. 

The CBI asserts that it has gathered substantial evidence, including documents and witness testimonies, to support its claims. The case has sparked widespread political controversy, with opposition parties accusing AAP of corruption and financial misconduct. As the investigation continues, the case could have significant political ramifications for AAP, particularly as the party prepares for future elections. If proven, the allegations could severely impact AAP’s reputation and leadership, potentially undermining its governance in Delhi and beyond. 

The investigation is ongoing, and the political fallout from the case is being closely monitored. Further developments are expected as the legal process advances. For more politics news in Hindi, subscribe to our newsletter. 

[indiatimes-news]

Modus operandi unraveled: How over Rs 600 crore were siphoned out of country

The outward remittances were done illegally in the garb of third party payments against import of garments from Bangladesh.

Delhi Police's Special Cell registered an FIR in October 2021 regarding a syndicate that channeled money obtained through various criminal activities out of the country. This included Proceeds of Crime ( POC) obtained through illegal Chinese loan apps, illegal online gamings and also illegal bettings.

The wide network of this syndicate can be gauged from the fact that the case was first taken over by Delhi Police in October 2021. It was later transferred to the Enforcement Directorate ( ED) that is probing the matter and recently made an arrest on July 13.

From the documents that have been accessed by Republic Digital, it is mentioned categorically how accused persons, the fraudulent companies created by them on the pretext of forged documents were involved in opening of bank accounts both within and outside country and have taken out funds to the tune of Rs 338 crore.

To begin with, fake identities like Aadhaar, PAN cards and Voter ID cards were used for creating shell firms and opening multiple bank accounts.

In continuation to this, shell firms were also opened in Hong Kong, China, UAE, Singapore and Malaysia. The money that was deposited in Indian bank accounts was then successfully routed through RTGS/ NEFT.

The probe in this case by the agencies led them to get hold of Ashish Kumar Verma. It was found that Ashish along with the accomplices were able to create 18 shell firms and multiple accounts not only in private but also public banks.

Investigations have also revealed that Ashish is one among many in this huge syndicate that was successfully taking out hundreds of crores from the country.

As per law enforcement officials the other major characters involved in this crime of money laundering included Praveen Kumar based in Dubai who was involved in creating fake firms abroad, and Vipin Batra who used to be in touch with Ashish and gave him directions on how the modus operandi had to be implemented. Vipin Batra was recently arrested by the ED on July 13. He is being interrogated.

The mastermind of this syndicate is said to be Pawan Thakur, a Dubai-based bookie and an international Hawala operator. As per law enforcement officials, he is the mastermind in incorporating entities within India as well in foreign countries for remitting funds from India and receiving such funds in foreign bank accounts.

Thakur used to provide forged documents to Vipin Batra who in turn used to send these documents to Ashish Kumar Verma for executing outward remittances. Thakur used to incorporate entities in foreign countries on the backing of passports of several Indian individuals.

The modus operandi proved to be so successful that the syndicate acquired foreign exchange to the tune of Rs 271 crore and successfully sent this amount to the foreign bank account of shell companies abroad in the garb of purported imports of services giving false declarations in turn to banks.

In this, 90 percent of the amount was sent to Dubai while 10 percent was sent to Singapore.

It did not just end here. During the investigations, it was further found that Pawan Thakur was working on a similar modus operandi and in connivance with people that have been identified as Rohit Sharma, Jatin Chopra, Anmol Srivastava, Deepak Kaushal and others for illegal outward remittances.

The outward remittances were done illegally in the garb of third party payments against import of garments from Bangladesh.

From this, funds to the tune of Rs 338 crore were channeled out to Hong Kong and Singapore. Some of the fake firms that were created are Perfect Solutions, Omega Technologies, RP investment and consultancy, Flappose Trade PVT ltd, Uniwide innovations.

Fake directors of these firms were created. Bank accounts of office boys were created by giving them Rs 15,000. On their names, SIM cards used to be bought from where banking transactions used to be done.

With some arrests made in this case so far, investigations are still on to get hold of major masterminds in this Hawala racket that has resulted in more than Rs 608 crore being siphoned off the country.

[moneylaunderingscandal-news]

London Fintech Owner Accused of Aiding Drug Traffickers in Massive Money Laundering Scandal

In a riveting turn of events, a 38-year-old Italian fintech owner based in London, Caio Marchesani, is currently under intense scrutiny, accused of being a key player in a vast money laundering operation involving notorious drug traffickers. This gripping saga unfolds as authorities dig deep into the inner workings of the crypto exchange world, unearthing connections that span international borders.

The International Nexus Unveiled

This intricate web of intrigue came to light when Dutch customs officials made a colossal bust at the Rotterdam port, seizing over 12 tonnes of cocaine valued at a staggering €260 million ($283 million). This audacious seizure set off a chain reaction that eventually led authorities to Sergio Roberto De Carvalho, a Brazilian drug lord, and Flor Bressers, a Belgian criminal infamously known as the “finger cutter.”

Transatlantic Pursuit of Justice

The long arm of the law extended across continents as Belgian authorities initiated an investigation into Caio Marchesani three years ago. Their pursuit of justice has now crossed the English Channel, with the authorities seeking his extradition from the UK. This move is part of a concerted effort to dismantle a transnational criminal organization that has been operating with apparent impunity.

The Enigmatic Fintech Owner

Marchesani, the enigmatic owner of Trans-Fast Remittance, a regulated payments business, stands accused of knowingly facilitating money laundering for De Carvalho and managing crypto accounts for Bressers. As the investigation unfolds, it has been revealed that Marchesani stored substantial sums of cash in a heavily guarded apartment near the US embassy in London.

Furthermore, authorities have frozen approximately £1.5 million ($1.9 million) worth of cryptoassets associated with Marchesani, underscoring the magnitude of this high-stakes investigation.

The Binance Connection

Belgian prosecutors have unearthed a crucial link in the money laundering chain – Marchesani’s management of 14 Binance accounts for Bressers and his role in holding cash for De Carvalho. Shockingly, Marchesani charged exorbitant fees of up to 9% for these fund transfers, a detail that has raised eyebrows in the financial world.

The money laundering operation appeared to blend new-age technology with the ancient hawala money transfer system, which is primarily practiced in the Middle East. A Binance spokesperson revealed that the exchange had cooperated with law enforcement, providing “practical operational assistance” to aid in the investigation.

The Dark Banker Allegation

Amanda Bostock, representing Belgian authorities, painted a vivid picture of Marchesani as a “dark banker” who masterfully mixed and moved money at the behest of the criminal organization, shrouding its origins in secrecy.

In a bold counterargument, Marchesani’s legal team vehemently denied these allegations. They contend that the funds used for his bail surety stemmed from a legitimate UK-based company focused on healthy eating. They firmly assert that none of the allegations against Marchesani have any bearing on his UK-based business interests.

The Legal Battle Unfolds

Marchesani’s legal team is poised to mount a vigorous defense against his extradition. They have cited inconsistencies in the investigators’ case, raising questions about the integrity of the evidence presented against their client.

In an intriguing twist, Marchesani faces a maximum sentence of five years imprisonment in Belgium if convicted, despite never having set foot in the country. The Belgian prosecutor is determined to wrap up the probe by early September, with plans to take the case to a full-blown criminal trial.

Cryptocurrency Exchange Founder Sentenced

In a separate legal case reverberating through the cryptocurrency sector, Faruk Fatih Ozer, the founder and former CEO of Thodex, a prominent Turkish cryptocurrency exchange, has received a staggering 11,196-year prison sentence. Ozer’s conviction encompasses a slew of charges, including fraud, leading a criminal organization, and money laundering.

This case underscores the increasing scrutiny on cryptocurrency exchanges and their role in potential illicit activities. As the world of digital currencies continues to evolve, law enforcement agencies and regulators are grappling with the complex challenge of keeping this space free from criminal elements.

Conclusion

The unfolding saga involving Caio Marchesani, the London fintech owner accused of aiding drug traffickers in a vast money laundering operation, offers a gripping narrative that transcends borders and delves deep into the complex world of cryptocurrency exchanges. With legal battles on the horizon and investigations reaching international proportions, this story is far from over, leaving the world eagerly awaiting the next chapter in this high-stakes drama.

[24blognewspress]

The Fintech Owner Accused of Laundering Drug Money in Huge Bitcoin Scheme

Caio Marchesani is alleged to have managed crypto accounts for a criminal gang

A fintech owner in London is facing allegations that he helped notorious drug traffickers attempt to launder hundreds of millions of euros through a crypto exchange platform on a scale rarely seen by European prosecutors.

Authorities in Belgium are seeking the extradition of Caio Marchesani from the UK as part of their effort to dismantle a transnational gang.

hoarding piles of cash for Sergio Roberto De Carvalho, a Brazilian described by Interpol as one of the world’s most wanted kingpins before his arrest in 2022, and managing crypto accounts on behalf of Flor Bressers, a Belgian national known as the “finger cutter,” who was also nabbed last year.

Marchesani owns Trans-Fast Remittance, a payments business regulated by the Financial Conduct Authority. He was arrested in May at Heathrow Airport.

The case puts the British financial-technology scene under fresh scrutiny amid fears that its weak controls are enabling the movement of illicit funds around the world. Transparency International UK has called for tougher supervision after finding that more than one-third of UK-licensed electronic-money institutions show red flags. In response to 24blognewspress queries, the FCA said it is “engaging” with Trans-Fast “as part of our ongoing supervisory work, including in relation to these matters.”

The Belgian investigation kicked off three years ago after Dutch customs officials seized more than 12 tonnes of cocaine, worth more than €260 million ($283 million), from containers at Europe’s busiest port, Rotterdam. Authorities traced the haul to Bressers and De Carvalho, later zeroing in on Marchesani after a breakthrough in decoding encrypted communications. 

In all, 33 suspects have been identified, linked to countries including Brazil, Hungary, the Czech Republic, and France — five are in pretrial detention, with Bressers and De Carvalho in Belgium and Marchesani in the UK. 

The case against Marchesani came to light at a series of extradition hearings in London. A request for bail was turned down by the court after prosecutors described him as a flight risk. The judge intends to rule on the extradition later in September.

‘Large Cash Sums’

Marchesani managed 14 Binance accounts for Bressers, according to Belgian prosecutors. He also held cash for De Carvalho, charging suspiciously high rates of as much as 9% for transferring funds, the prosecutors said.

As many as 85% of Trans-Fast customers were Brazilian, filings from a separate employment case show. A recorded company telephone message says it is currently offline and unable to process orders.

The underground network is alleged to have essentially combined new technology with hawala, a centuries-old money transfer system practiced in regions including the Middle East, where international and local remittances are paid largely based on trust. Its use of crypto currencies increased after the Covid pandemic made cash deliveries much harder, according to Belgium prosecutors. Binance provided law enforcement with “practical operational assistance” in relation to the investigation, a spokesperson for the crypto-trading platform said. 

Amanda Bostock, a lawyer acting for Belgium authorities, described Marchesani as “a dark banker who receives money and moves it around at the will of the criminal organization in order to disguise its origins.” 

“Very large cash sums” protected by a round-the-clock guard were said to have been stored at an apartment Marchesani rented near the US embassy in south London, prosecutors said. He was found with some £1.5 million ($1.9 million) of cryptoassets. The electronic wallet holding them was subsequently frozen. 

Marchesani’s lawyers deny the allegations. The money for Marchesani’s bail surety had legitimate origins from a UK company with a “thriving business focused on healthy eating in a cafe setting,” the judge said in a reference to Acai Berry Foods Ltd. of which Marchesani is the chief financial officer and a 50% shareholder. The prosecution’s case has “false, vague, ambiguous or inaccurate particulars,” his lawyers at Mishcon de Reya said. “What is clear however, is that none of the allegations against him relate to any of his business interests in the UK.”

Marchesani, who interned at Deutsche Bank from October 2013 to January 2014, wanted to convert Trans-Fast into an online bank according the employment case tribunal ruling. Companies House filings from August show another owner added to the registry. 

‘Everything is Criminal’

In an encrypted chat decoded by authorities, Marchesani, using the moniker ‘Greysmith,’ asked, “friend, this ted 60 is for crime or normal?” to which ‘Lucrativeherb’, a pseudonym prosecutors say was used by De Carvalho, replied, “Normal. Everything is criminal,” the Belgian law enforcers alleged. The judgment did not mention what ‘ted 60’ referred to. In another message, Marchesani is alleged to have said: “only risk is when the police are around.”

Bressers, who has a masters in criminology, was wanted on charges including kidnapping, gang drug trafficking and theft, and was arrested in February 2022 in Zurich. De Carvalho was nabbed in Hungary in June 2022 and transferred to Belgium by the air force earlier this summer. He was subject of an Interpol Red Notice, with countries including Brazil demanding his extradition for drug trafficking, money laundering, forging documents and murder in connection with organized crime.

The Belgian prosecutor said in a July letter to the UK, that nearly all the evidence has been collected and that she aimed to conclude the probe in early September. She said she’d already decided the case will go to a full criminal trial. A spokesperson confirmed the letter and declined to comment.

In London, Marchesani’s lawyers said they planned a further challenge to his extradition because investigators were presenting different cases at different moments. If convicted, Marchesani faces a maximum sentence of five years imprisonment in Belgium, a country his lawyers say he’s never visited.

[indiaempire]

580-cr stock investments frozen in Mahadev app case

The Enforcement Directorate (ED) has frozen investments in shares and securities worth Rs 580 cr belonging to an alleged hawala operator based in Dubai, Hari Shankar Tibrewala, associated with promoters of the tainted Mahadev group, Saurabh Chandrakar and Ravi Uppal.

The ED said that Tibrewala is also involved in bookie businesses and operates a separate gaming platform in India.ED alleged that Tibrewala plays a key role in routing money earn through gaming-betting business in India. On Friday, the ED issued a press release that said, “He found to be associated with the illegal betting site skyexchange. It was found that Tibrewala had invested betting proceeds in the Indian Stock market through Foreign Portfolio Investment (FPI). He had appointed several associates as directors in various companies to conceal the origin of the betting funds. Tibrewala was also deeply involved in hawala movements of these funds.” Tibrewala, who hails from Kolkata, owns a star-hotel in Dubai, which allegedly serves as the base for his illegal gaming-betting operation in India. TOI tried to contact Tibrewala on the contact number provided on his company website of his office at Jumeirah Lake Towers in Dubai, but no one responded to the call. The ED is investigating “Mahadev Online Book,” which is involved in setting up online platforms for illegal betting sites. The group's activities include registering users, creating their IDs, and channeling money through a network of fake accounts. The probe was initiated based on FIRs filed by police in multiple states.

[jjtax]

Unveiling the Ketan Parekh Scandal: A Deep Dive into India’s 2001 Stock Market Crisis

We're back, but today's post is a bit different. We're taking a deep dive into the infamous stock market fraud of early 2001 in India: the Ketan Parekh scandal. This massive financial deception, masterminded by stockbroker Ketan Parekh, caused major upheaval in the financial markets and highlighted critical flaws in regulatory oversight, leaving a lasting impact on India's financial landscape.

How the Scam Was Executed

Ketan Parekh, once a well-regarded stockbroker and trader, orchestrated the scam using a complex scheme to manipulate stock prices and deceive investors. His methods, which initially earned him acclaim, involved:

Circular Trading: Parekh used a tactic known as circular trading, where stocks were repeatedly bought and sold among a limited group of firms and brokers to artificially boost their prices. This created a false sense of high demand, leading to inflated stock prices and luring unsuspecting investors.

Hawala Transactions: To avoid detection, Parekh utilized hawala systems—informal networks for transferring money that bypass traditional banking systems. This allowed him to move large amounts of money without creating a paper trail, complicating efforts to track and investigate his fraudulent activities.

Stock Overvaluation: Parekh’s scam also involved inflating the values of stocks, especially those in which he had substantial interests. By raising these stock prices artificially, he was able to sell them at much higher rates, profiting greatly at the expense of genuine investors.

The Collapse of the Scam

The scheme began to collapse in early 2001 as the stock market experienced an abrupt downturn. Investigations revealed significant anomalies and irregularities linked to Parekh’s manipulation:

Unusual Trading Activity: Analysts and market observers detected trading patterns and price shifts that diverged significantly from the economic realities of the companies involved. This triggered an investigation by regulatory authorities.

Regulatory Response: The Securities and Exchange Board of India (SEBI) played a crucial role in exposing the scam. SEBI's probe uncovered Parekh’s use of circular trading and other deceitful practices, leading to a broader investigation into his and his associates' activities.

Financial Consequences: The immediate fallout included a sharp decline in stock market indices, causing substantial financial losses for investors. Both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) saw significant drops, reflecting a loss of market confidence.

Quantitative Data and Repercussions

The financial repercussions of the Ketan Parekh scandal were severe. Key figures include:

Market Capitalization Decline: The Indian stock market’s market capitalization fell by over ₹10,000 crore (about $2.5 billion) due to the scam. This drop resulted from the sudden erosion of investor trust and a subsequent mass sell-off.

Stock Price Manipulation: Parekh manipulated over 30 companies, with some stock prices skyrocketing by up to 400% in a brief period. For instance, the price of a stock from one of Parekh’s favored companies surged from ₹25 to ₹125 before plummeting back down.

Legal and Regulatory Expenses: Addressing the scandal incurred significant legal and regulatory costs. SEBI and other authorities invested considerable resources in investigating the fraud and enforcing corrective measures. Several brokers and market participants faced fines and legal repercussions.

Impact and Reforms

The Ketan Parekh scandal had far-reaching effects on India's financial sector. In response, several reforms were implemented to enhance market transparency and regulatory oversight:

Regulatory Strengthening: SEBI enacted stricter rules to curb market manipulation and improve transparency. This included tougher disclosure requirements for companies and more stringent trading regulations.

Enhanced Surveillance: Indian stock exchanges upgraded their surveillance systems to better detect and prevent fraudulent trading activities, incorporating advanced monitoring technologies and data analysis.

Legal Outcomes: Ketan Parekh faced legal consequences and was ultimately convicted for his role in the scam. He received a prison sentence and fines, serving as a warning against future financial misconduct.

The Ketan Parekh stock market scandal of 2001 remains a landmark event in India's financial history. Through circular trading, hawala transactions, and stock overvaluation, Parekh executed a scheme that not only misled investors but also exposed vulnerabilities in the financial system. The aftermath led to significant reforms and regulatory changes aimed at preventing such incidents in the future. As both investors and regulators continue to navigate the complexities of financial markets, the lessons from the Ketan Parekh scandal emphasize the need for vigilance, transparency, and robust oversight to maintain market integrity.

JJ Tax

[allafrica-news]

Zimbabwe: Uebert Angel, the man of God accused of money laundering

Uebert Angel, President Emmerson Mnangagwa’s envoy and ambassador at large to Europe and the Americas, is portrayed as a central figure among powerful gold smugglers from Zimbabwe to the United Arab Emirates (UAE) in Al Jazeera’s ‘Gold Mafia’ documentary.

Born Uebert Mudzanire, the 44-year-old British-Zimbabwean appears to be close to Mnangagwa’s wife Auxillia and his niece Henrietta Rushwaya who is also the president of the Zimbabwe Miners Federation.

‘Opportunist’

Angel boasts of being close to Mnangagwa and his family to the extent of even calling him on a private and secure line.

Using his diplomatic passport, Angel says he can smuggle any amount of US dollars cash in and out of Zimbabwe in his bag which is protected and cannot be searched.

With the powers vested in him by Mnangagwa, Angel can sign deals with individuals and companies abroad on behalf of the Zimbabwean government without anyone from the cabinet or executive objecting.

“I am the second-largest diplomat in the country. Do you know I can carry him in a bag, and nobody is allowed to search? Right now, I can have a bag like this with $1.2bn. And put a red tape written diplomat. That’s it,” said Angel while speaking to undercover journalists in the documentary.

“Mr. Angel is one of the most cunning, greedy and controversial businessmen and televangelists of our time,” says Tapuwa O’bren Nhachi, a Zimbabwean social scientist.

“Remember his departure in Zimbabwe was mired in controversy so has been his lifestyle and prophetic industry,” he adds.

Mystery and controversy

His appointment as ambassador at large also raised eyebrows and his actions in the documentary summed up who he is, says Nhachi, who has worked with civil society groups in the extractive industry before.

“I can also safely say he is an opportunist whose end is to make himself wealthier than he is,” he says.

Angel asks businesspeople to pay thousands of dollars for his services of just facilitating a meeting with the President, who is referred to as the “king” in the documentary.

This confirms allegations that government officials and businesspeople close to Mnangagwa secure meetings for investors with the President for huge sums of money.

“We have done maybe for two hundred million or three hundred million [dollars]. But we have not done for one billion [dollars] per see,” said Angel while speaking to undercover journalists in the documentary on how he could help them smuggle cash into Zimbabwe.

There was a public outcry in Zimbabwe and abroad following the appointment of Angel as a Presidential envoy and Ambassador at large in March 2021.

‘Thieves and smugglers’

Angel’s whole life has been shrouded in mystery and controversies.

To many, the appointment was not a surprise given that Mnangagwa associates himself with controversial people like Ewan MacMillan and Kenyan-born businessman Kamlesh Pattni – both men feature widely in the documentary – who have opaque reputations.

Gold is smuggled from Zimbabwe with the help of Rushwaya, officials of Fidelity Printers and Refiners, the sole buyers of gold owned by the Reserve Bank of Zimbabwe and immigration officers at Robert Gabriel Mugabe International Airport, according to Al Jazeera‘s investigation.

The dirty money is cleaned through a system called Hawala – an informal way of moving money outside the formal banking channel without detection which will see the money declared as clean in both Harare and Dubai.

In Al Jazeera‘s documentary, Pattni’s couriers are accused of flying gold to Dubai and bring back US dollars to Zimbabwe.

In 2021, CNRG released a report titled ‘Zimbabwe’s Disappearing Gold: The Case of Mazowe and Penhalonga’ which exposed how politicians linked to President Mnangagwa are smuggling the country’s natural resources outside the country.

Illicit financial flows in the artisanal mining sector in Zimbabwe are responsible for leakages of an estimated 3trn of gold, valued at approximately $157m every month, according to the CNRG report.

Zimbabwe trades in $2bn worth of gold per annum.

Small-scale miners produce about 50% of the southern African nation’s gold but Mnangagwa’s cash-strapped government does not have enough money to buy it, thus the smugglers, with the help of Angel, buy it for the bank, per Al Jazeera‘s investigation.

In 2020, Rushwaya was arrested and charged with attempting to smuggle 6kg of gold from Zimbabwe to Dubai. In 2021, her former driver was exposed when he tried to smuggle to Dubai gold worth more than $670,000.

‘Thug masquerading as a man of God’

Angel was born and raised in a Christian family in Zimbabwe.

His journey to preaching goes back to 1996 when he established a small group that conducted its affairs at his home, which later grew into a church known as the Spirit Embassy in 2007. The self-styled prophet is not apologetic about his sermons, based on how his congregants can become rich.

He has authored several books on how to make money and he has a theology institution that charges for its services and he takes offerings, hosts conventions and sells different faith products online.

Today, based in the UK, Angel presents himself as a powerful ‘man of God’ who owns satellite-broadcasting channels, Miracle TV, GoodNews TV and Wow TV, which air his church services.

He once clashed with Reserve Bank of Zimbabwe (RBZ) Governor Gideon Gono who accused him of money laundering after he performed what’s known as ‘miracle money’, whereby he produces money and other valuables like diamonds and gold.

Angel lives a lavish life with luxury cars, private jets and expensive homes. He was accused of money laundering and fraud by a former member of his church in 2014.

His other scandals include sexual misconduct allegations from one of his female congregants.

Zimbabwean elite society is a complex web of high political, economic – both legal and illegal – interactions and mutual dependencies, says a professor of World Politics at the University of London’s School of Oriental and African Studies (SOAS), Stephen Chan.

“The foundation of multiple Christian churches that do not exactly preach Jesus’s message of poverty gives all of this a fig leaf of riches and power being a donation from God. Angel is simply one example of this syndrome of interaction where politics, economy and worship have all become corrupt,” he says. “Jesus did say that it is easier for a camel to enter a needle’s eye than for a rich man to enter the Kingdom of Heaven. Rich angels too, no doubt.”

“Angel represents a breed of thugs that hide behind the church whilst making money through illegal means,” says Nhachi.

“If you look at the top 10 richest people in Africa, it is dominated by people in the church business. So you wonder whether such wealth is from congregants or there is an illegal side hustle as was shown by Angel and Pattini,” he adds.

‘Angel is untouchable’ In April, the government froze the financial assets and bank accounts of individuals implicated in the documentary including Angel, Pattni and Simon Rudland to pave the way for investigations.

By May, the government had reversed its move saying investigations had stopped as there was no wrongdoing.

Parliament Speaker Jacob Mudenda also blocked legislators from conducting their own independent investigations. After pressure from civil society groups in the UK, authorities in London opened an investigation.

Many well-connected people in Zimbabwe were implicated in the documentary and are close to Mnangagwa, Chan says. “To punish one without punishing all the others would be selective. To punish all would be to cause huge tensions in Zimbabwean high society,” he says.

“Angel does not represent the best of Zimbabwe, nor imbue a sense of trust,” says Piers Pigou, a Southern Africa Programme head at the Institute for Security Studies in South Africa.

“He and his sidekicks reinforce perceptions that criminal enterprise is thriving under [Mnangagwa’s administration],” he adds. That has been the case with Zimbabwe’s ruling party Zanu PF that those with serious criminal activities are not brought to book, Nhachi says.

“I feel Angel knows too much. His appointment was not beneficial to the country but to certain individuals,” he says, adding: “The fact that Angel is based in the UK makes him more dangerous if they try to bring him down.”

Speaking at a press conference in Harare in April, Angel’s lawyer Lovemore Madhuku denied the allegations.

“My client wants it to be put right across on record that he has never ever done anything on behalf of the President, no deal on behalf of the President, no activities on behalf of the President,” he said.

“My client wants to make it clear that he has no relationship whatsoever with members of the President’s family. He only has a relationship with the President. He actually has never met the First Lady.”

Madhuku added that Angel had never been involved in any criminal activities.

“More particularly, he would like it to be stated that he has not been involved in any form of gold dealing or gold smuggling nor has he ever engaged in money laundering. The insinuations in the Al Jazeera documentary are wholly baseless.”

Madhuku said after realising that the investors in the documentary were not real, Angel decided to play along.

“The actions in the documentary are consistent with a classified national intelligence operation which was meant to see how far they would go. […] In the documentary, there was no call which was made. There was no call to the First Lady for example. There was no call to Henrietta Rushwaya.