ED arrests BRD Group CMD William Verghese for duping investors
Initially money was collected as investments and later on issued share certificates but did not pay dividend as promised and issued bonus shares and cheated them.
New Delhi: Enforcement Directorate (ED) has arrested C. C. William Verghese, CMD of BRD Group, Kunnamkulam, Trissur district in Kerala on 08.02.2021 under Prevention of Money Laundering Act, 2002 (PMLA) in a cheating case.
ED initiated investigation under PMLA on the basis of FIR registered by Kunnamkulam PS under section 420 of Indian Penal Code, 1860. On the complainants therein alleged that they were persuaded by W. Verghese and others to invest money in various companies promoted by him viz. M/s BRD Finance Ltd., BRD Securities Ltd., M/s BRD Motors Ltd., of the BRD Group promising 18% returns per annum. Initially money was collected as investments and later on issued share certificates but did not pay dividend as promised and issued bonus shares and cheated them. There are around 140 FIRs registered in the Kunnamkulam PS during 2018 and 2019 on similar allegations.
ED collected documentary evidence and statement of various persons recorded under PMLA. ED searched the premises of M/s BRD Securities Ltd., M/s BRD Finance Ltd., M/s BRD Motors in Kunnamkulam and Kokkalai and also the residence of William Verghese in Edappally, Ernakulam on 29.1.2021 and several incriminating documents and records were seized. It is found that William Verghese formed various entities and collected money from various persons within India and also outside India and it has been found that a number of properties were purchased by William Verghese and others in their respective names out of funds thus collected which represents the Proceeds of Crime (PoC).
The PoC was generated by William Verghese and others and William Verghese is the master mind in the whole process of planning and execution which was supported by other accused persons. David Raj, one of the Director of the company and close relative of William Verghese who travelled to Sharjah, UAE with the knowledge of William Verghese and registered a company by name and style M/s BRD International FZE, Hamriya Free Zone, Sharjah, UAE and collected money for investments from various Non-Resident Indians in UAE Dirhams promising 18% return and later issued share certificates of the BRD Group of Companies in Kunnamkulam, Thrissur expressed in Indian rupees. These share certificates were also issued at the rate of Rs. 120/- per share. The money was collected by cheque drawn in the name of M/s BRD Finance Ltd. William Verghese and others were collecting money for investments as aforementioned from the year 2012 onwards and the process is continuing.
He was produced before the Hon’ble Special Court (Principal Sessions Court), Ernakulam for PMLA case which was pleased to remand him to Enforcement Custody for 7 days from 09.02.2021.