KUALA LUMPUR: Nine individuals were detained including a mastermind who had been using a fake Datuk Seri title for operating a non-existent stock investment known as Planetrade Investment (Plan E Investment).
Bukit Aman Commercial Crime Investigation Department (CCID) director Datuk Mohd Kamarudin Md Din said his department launched an operation to track down and arrest the mastermind and individuals involved in separate raids around the federal capital, Selangor and Penang.
"Following the raids being carried out, we detained nine local individuals comprising three men and six women aged between 41 and 62 years old.
"Those arrested include a 46-year-old man who is the mastermind of the syndicate as well as several agents and individuals involved in operating the company owned by the man.
"We also seized six luxury vehicles, 13 mobile phones, seven ATM cards, a passport, two computers, two laptops, seven sets of agreement documents and several other items in the raid," he told a press conference at the Bukit Aman CCID headquarters. here, today.
Kamarudin said two individuals, including the mastermind, were remanded for two days, while seven other individuals were remanded for two days to assist in the investigation of the case which is being investigated under Section 420 of the Penal Code for cheating.
"We also froze 27 bank accounts related to the syndicate involving money amounting to more than RM750,000 as well as the ownership of shares of the main mastermind involved in four companies.
"Apart from the investigation under Section 420 of the Penal Code, we also took action under the Anti -Money Laundering and Anti -Terrorism Financing Act 2001 and the Prevention of Crime Act (POCA) 1959 in this case," he said.
He said that checks also revealed the mastermind used his fake Datuk Seri title to convince investors to join the investment scheme.
"The outcome of the investigation carried out by the police found that the syndicate began operating since January last year by offering investments based on the purchase of preferential shares.
"Investors were promised a fixed profit rate of around four to five per cent per month from the capital invested besides being assured that the investment money will be invested in various shariah-compliant investment mediums locally and abroad.
"However, a review found that there was no evidence to show that the parties involved had bought shares for investment.
"We believe the money was used for personal purposes apart from paying dividends to investors at an early stage in the form of a pyramid scheme," he said.
He said initially, investors received a promised monthly profit before the syndicate abruptly cut off communication with the victims.
"We received 21 reports comprising 12 reports in Kuala Lumpur, Melaka (1), Kelantan (2), Selangor (5) and Terengganu (1) related to this investment scheme with a total loss of RM3.32 million.
"The intelligence checks conducted found that some investors recorded losses of about RM4.6 million, but have not yet come forward to lodge a police report," he said.
He advised the public not to be easily swayed by the invitation of a friend to join any investment scheme without making the necessary checks.
Kamarudin said some of the investors in this latest case had been victims before but were willing to take the risk to be involved in such investments.
"This is because they believed in the testimony given by a friend eventhough there is no confirmation of the information provided.
"It should be remembered that swindlers are always roaming around and taking advantage to cheat.
"Therefore, the public is reminded to always be wary of investment schemes that promise unreasonable and suspicious returns," he said.