KUALA LUMPUR: Police have busted an investment fraud syndicate which impersonated investment company Goldman Sachs to deceive the public, cheating 41 people of almost RM11.4 million.
Federal Commercial Crime Investigation Department (CCID) director Datuk Seri Ramli Mohamed Yoosuf said the syndicate was busted through Operation Nuri 7/24 which involved a series of raids in Selangor, Johor, Negri Sembilan, Perak, Kedah, Penang and Sarawak on Apr 29.
He said during the raids, police arrested 12 people consisting of 10 men and two women, all locals aged between 21 and 45 years old.
"This raid is the result of intelligence carried out after we received 41 police reports from victims of this syndicate involving losses amounting to RM11.39 million.
"Among the suspects arrested were those who acted as company directors and businesses used as mule accounts in the fraud activities," he said in a press conference at Bukit Aman here today (May 3).
Investigations found that the fraud syndicate was operating online using the name of leading investment company Goldman Sachs, to deceive victims.
"This syndicate was found to be using Facebook and the WhatsApp application as a medium of marketing and communication with the victims, in addition to advertising investment promotions through social sites.
"This fraud investment scheme claimed to offer high returns of 15 per cent up to 200 per cent monthly. Investment profits were guaranteed through guidance and assistance from capital market analysis experts, " he said.
The victims were asked to download the 'Bam Pro' and 'Baly Pro Apps' applications on their mobile phones through the App Store and Play Store.
"The victim was then instructed to transfer the investment money to the mule account designated by the syndicate.
"Victims only realised they have been cheated when they are unable to withdraw the profit," he said.
Ramli said so far a total of 29 investigation papers have been opened involving this syndicate with losses valued at RM11.39 million.
"The investigation identified as many as 19 bank accounts involving three companies and 16 businesses misused by this syndicate as mule accounts to receive money from the victims.
"All the suspects were remanded for three days until yesterday and have been released on police bail. The case is being investigated according to Section 420 of the Penal Code, for fraud," he said.
He added that this syndicate was found to be active since February but had already managed to deceive dozens of victims.
He advised the public not to be easily deceived by investment offers that promised lucrative returns in a short time.