Crime & Courts

400 suffer losses of more than RM100mil in forex investment scheme [WATCH]

KUALA LUMPUR: Some 400 victims of an alleged currency investment scheme claim they have been scammed of more than RM100 million.

Insurance agent Lee Jian Shiun, 32, was among the victims who held a press conference at a shopping centre in Subang yesterday to bring attention to their plight.

According to Lee, he was first introduced to the investment scheme by his friend in 2016 which offered a return of two per cent profit every month in addition to a handsome reward if he managed to bring in other investors.

Lee said he was taken to see a foreigner claiming to be the head broker who manages financial transactions between investors and the company.

"In the beginning, I did get the promised returns every month and was convinced that the company was legitimate. I then brought in several family members and friends to invest together and they all received their returns.

"However, in 2022, we did not receive the promised returns and the company gave various reasons including claiming that the problem was caused by the bank.

"Until one day, the head broker mistakenly sent a message about the division of investors' money with his two partners into a WhatsApp group which proved that our money was not invested but rather divided between them," he said.

Lee said that after the incident, he insisted that his money be returned but the company failed to do so. He then decided to file a police report.

Another victim who only wanted to be identified as Ethan, 32, also suffered losses of more than RM1 million after participating in the investment scheme since 2017.

Ethan said he was introduced to the scheme by a friend who informed him that the company involved was reputable and had many investors throughout the Asian region, making him confident to invest.

"During five years of investing, I did get investment returns and was rewarded for bringing in other investors according to the set period even though sometimes there were late payments.

"But starting in 2022, my friends and I no longer received returns as usual for all kinds of ridiculous reasons. After waiting for more than a year, my investor friends and I came forward to file a police report," he said.

Malaysian Humanitarian Organisation secretary-general Datuk Hishamuddin Hashim said the organisation received some 400 complaints about a forex currency investment scheme offered by the company.

"Based on the complaint, we found that the company's modus operandi is to appoint investment brokers who supposedly manage financial transactions between investors and companies. The brokers will appoint marketing agents to promote their investment schemes.

"MHO suspects that the investment scheme offer is illegal because the company does not comply with the laws provided to regulate investment companies in Malaysia," he said.

Therefore, he asked the authorities to carry out further investigations in accordance with Section 420 of the Penal Code for cheating and impose legal action on the company.

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