<h1>Money Laundering Probe Under PMLA Targets Alleged Front-Running and Market Manipulation by Mutual Fund Trader</h1> The Enforcement Directorate initiated a money laundering investigation under the Prevention of Money Laundering Act concerning alleged front-running in trades executed by a major mutual fund between 2018 and 2021. The probe follows a prior Income Tax Department search and a police FIR accusing a former chief trader and fund manager of exploiting confidential trade information to execute pre-emptive trades, generating illicit profits. Searches were conducted across multiple cities, targeting the accused and associated entities. The investigation alleges the use of offshore terminals and mule accounts to facilitate the illegal trades, with proceeds funneled through shell companies and family-linked bank accounts. The case involves potential violations of securities laws, FEMA provisions, and anti-money laundering regulations, focusing on market manipulation and financial fraud impacting investors managing substantial assets.