GEORGE TOWN: Thirteen people lost a total of almost RM1.63 million to a gold investment sceheme that they participated in since the middle of last year.
They were promised returns of up to 10 per cent a month, but received only RM20,000 to RM50,000 in total when the company became unreachable in Februrary this year.
A businessman, known only as Tan, 48, said he had invested a total of RM300,000 after being persuaded by a friend in the middle of last year.
He said he initially did not believe in such investment after falling victim to another investment scam prior to this.
"However, my friend persuaded and repeatedly convinced me until I gave in.
"He told me he knew this investment company and that the company had substantial cash reserves to guarantee any failed investments.
"I invested a total of RM300,000. I received about RM50,000 before the company went silent in February this year.
"I called the company repeatedly but there was no response. I asked my friend about it and he said he knew nothing about the company.
"That was when I knew I could have been cheated and lodged a police report last month," he said when met outside Bank Negara Malaysia's (BNM) Penang branch this afternoon.
Tan said he had reach out to the Malaysia Humanitarian Organisation (MHO) for help.
He said 12 friends whom he had persuaded to invest in the scheme were in the same predicament.
"Some of my friends took loans to invest, and one of them used up his savings set aside for cancer treatment.
"Now, we are left with nothing," he added.
All lodged police reports.
Tan's friend, Yap, 40, lost about RM500,000 at the end of last year and received only RM20,000.
Yap, who used to run a furniture store, said he took a loan for the investment.
"Now, I am left with nothing. I am out of business and had to repay the loan I took.
"I just don't know what else to do," he said.
MHO secretary-general Datuk Hishamuddin Hashim said he had reached out to the police and was told that some of the reports were being investigated under Section 420 of the Penal Code for cheating, some were categorised as Refer to other Report (ROR) and others as No Further Action (NFA).
He said he received complaints from 13 people, who believed they have been cheated by two individuals from a company based in Bukit Jambul.
He said checks showed the individuals had used several companies for deposit taking.
"Further checks showed the company did not have any approval or licence to receive deposits from the public, more so for investment purposes.
"We suspect there is something not right going on and urge BNM to look into the matter.
"We want justice for the 13 people and many more, who may have fallen victim," he added.