The recent busting of the scam in Mumbai and Gujarat led to the arrest of at least 20 people in the U.S.

The recent busting of the multi-million dollar scam involving call centres in Mumbai and Gujarat has led to the arrest of at least 20 people in the United States. All the arrested persons are of Indian origin, with a majority of them being from Gujarat.

On October 28, U.S. Homeland Security Secretary Jeh Johnson said that fake call centres had defrauded thousands of U.S. citizens of more than $300 million.

The mastermind behind the network of call centres was identified as Sagar Thakkar alias Shaggy who ran the scam with the help of his aides in Ahmedabad and Mumbai.

The crack down by U.S. authorities led to five call centres, all based in Ahmedabad, being shut down. Besides the 20 arrested in the U.S., 31 people have been arrested in Maharashtra and Gujarat.

According to police, the racket was run through a network of call centres from where telecallers would call U.S. tax payers impersonating as officials from the Department of Homeland Security, Internal Revenue Services, or other government agencies, demanding payment in order to clear fictitious arrest warrants, orders of deportation, or unpaid income tax.

The callers “threatened potential victims with arrest, imprisonment, fines or deportation” if they did not pay taxes or penalties to the government.

Among the victims was an elderly San Diego woman who forked out $12,300 after she was threatened with arrest if she didn't pay a penalty for fictitious tax violations.

“In Ahmedabad alone, hundreds of call centres have come up in last few years employing thousands of persons, who earn handsome salaries ranging from Rs. 30,000 to Rs. 50,000 per month,” a senior police official told The Hindu, adding, “the Indian authorities remained blind to the scam because of lack of complaint and also because the fraud was not taking place in India.” Thakkar alias Shaggy has gone underground since the scam came to light. According to insiders, he made more than Rs. 1,500 crore in the last five years and invested his money in land and property in Ahmedabad and Mumbai.

It was also recently reported that he had purchased a high-end Audi, costing Rs. 2.5 crore, from cricketer Virat Kohli to gift to his girlfriend. The Thane police has since seized the car from Ahmedabad.