9 sentenced for defrauding 66,800 Indians in $6.2 million telecom fraud case

Nine individuals were sentenced to prison terms in China along with fines for involving in a telecommunication fraud scheme targeting Indian victims. The scam siphoned 517 million Indian rupees ($6.2 million) from 66,800 victims through fabricated investment platforms and fabricated identities.

The scheme was led by a suspect surnamed He, who orchestrated the romance scam targeting Indian individuals, as reported by Legal Daily on Sunday.

In May 2023, He rented office space in Heze, East China's Shandong Province, to establish the fraud syndicate, recruiting members and acquiring overseas servers. He was responsible for liaising with Indian companies, coordinating fund supervision, and diverting capital, according to the report.

He's accomplices were responsible for training and managing the scammers, with experienced fraudsters specifically designing communication strategies and coaching employees. Another member surnamed Chen maintained the payment channels for the fraudulent investment platform.

"I met an Indian on a chat app and learned about the SENEE investment platform. Through messaging, we enticed Indians with promises of 8 percent to 15 percent monthly returns on 1,000-rupee ($12) investments," confessed He, the Legal Daily reported.

"When deposits surpassed the promised returns, the scam team would shut down the platform or convert debts into equity to freeze funds," said He. They then used third-party payment platforms to convert investments into USDT cryptocurrency, exchanging it for RMB or USD while taking a 15 percent commission.

"I portrayed myself as a wealthy Indian woman who achieved success through fund investments," a co-conspirator surnamed Li said. "I cultivated relationships with Indian men on social media platforms to entice them into investing in SENEE funds."

To enhance credibility, the gang created fake social media profiles featuring fabricated lifestyle, fitness, and travel photos, portraying successful yet emotionally vulnerable Indian women. They geo-tagged locations in Indian cities and engaged targets in relationship-building chats.

The syndicate further legitimized their scam by creating counterfeit corporate documents, including photoshopped trademark registrations, NBFC licenses, and business permits displayed on official-looking websites.

Between June 1, 2023, and January 13, 2024 - a span of just over seven months -66,800 Indians were defrauded of 517 million Indian rupees, according to the court's findings.

The court stated that the nine defendants, seeking illegal profits through false identities and cyber fraud tactics, formed a sophisticated criminal syndicate marked by professional organization, precise division of tasks, and interdependent profit-sharing mechanisms.

Based on their respective roles and hierarchy within the criminal group, the court sentenced the defendants to prison terms ranging from five years to 14 years and nine months, along with fines, according to the report.

Presiding judge named Liu Xilei said China has been intensifying crackdown on telecom and online fraud, urging perpetrators to immediately cease criminal activities and voluntarily surrender to authorities for potential leniency, said the report.