ED arrests Highrich company MD Prathapan for financial fraud

KOCHI: The Enforcement Directorate (ED) has arrested K D Prathapan, managing director of Highrich Company, Thrissur, in a case of siphoning Rs 1,157 crore in the name of online multilevel marketing and cryptocurrency investment.

The arrest was made on Thursday night following an investigation that began last January. Prathapan will be produced in Kaloor court on Friday. The ED also questioned Prathapan's wife and CEO Sreena Prathapan. It is indicated that her arrest will be made soon.

The fraud was done by collecting crores of investment and promising investors to include them in multi-level marketing selling groceries. Highrich also committed fraud by accepting investments in crypto-currency under the name of a subsidiary called ShareTech. According to ED officials, this is one of the biggest investment frauds in Kerala.

In January, the ED raided Highrich's offices in Kerala, Maharashtra and Chhattisgarh and the homes of its marketing partners. Raids were conducted at 15 places in Kerala. Assets worth Rs 200 crore, including investments in 55 bank accounts and buildings, were frozen.