Frontline scam: ED raids in 7 cities related to Front Axis MF employees, illegal gains over Rs 20 billion

On Friday, August 1, the Enforcement Bureau (ED) conducted a search operation in several locations in seven cities, Delhi, Gurugram, Kolkata, Ludhiana, Ahmedabad, Bavnagar and Bouji, as part of a survey of large-scale boundary enterprises. The lawsuit was conducted under the Money Laundering Act (PMLA), in 2002.

The raid was not in the Axis Mutual Fund Office, but brokers and merchants suspected of using non-public information in mutual fund transactions to conduct illegal transactions.

ED Action Follows FIR Against Axis Mutual Funds Former Fund Manager

The detection of ED originated from a December 2024 FIR filed by Mumbai police, Viresh Joshi, a former fund manager named Axis Mutual Fund, as the main defendant. Joshi allegedly abused confidential trading information between 2018 and 2021, placing personal transactions ahead of the fund’s official transactions and generating illegal profits.

Leading activities deceive investors in Axis mutual fund, which manages assets worth over Rs 2 million.

Dubai terminals are used to combat illegal transactions; tracking over Rs 20 billion

ED survey shows that Joshi passes Dubai’s trading portsuse m sub-account Get it from Indian brokers. Several other brokers and traders were also found to have used advance advice on Axis mutual fund trading.

So far, the emergency room has identified a crime gain (POC) worth more than Rs 2 million, which are converged through a layered bank account run by Shell entities and the defendants and their families. Officials believe the actual amount may increase significantly.

What is positive?

Forwarding is a crime in the stock market where a broker or trader takes a large number of customer orders to execute his own transactions and makes money from the market due to these customer transactions. Frontline operations undermine investor confidence and distort the integrity of financial markets.