JOHOR BARU: Police arrested four men, including a 15-year-old, suspected of carrying out arson attacks on loan defaulters during a series of raids in the state capital and Pontian last week.
The alleged suspects, aged between 15 and 20, are believed to be members of an illegal money lending syndicate responsible for nine arson attacks on the victims' homes.
The raids were conducted on Nov 15 and 16.
Johor police chief Datuk M. Kumar said the henchmen were paid RM1,000 per case to intimidate borrowers who failed to repay loans by committing criminal mischief using fire.
Based on investigations, the syndicate, which had been actively in operation since October, targeted Malaysians working in Singapore.
They had advertised their services on Facebook as legal moneylenders, promoting themselves as 'licensed Singapore loans' to lure victims.
Kumar said their modus operandi was to immediately transfer funds to victims once they revealed their personal information, such as bank account details and home addresses.
"Although the victims had yet to decide on the loans, they gave their details, and the funds would be transferred into their bank accounts without their consent.
"They would then impose exorbitant interest rates and resort to threats and arson when payments were not made.
"We believe the intimidation strategy was used to pressure victims and their families into repaying the loans.
"Our investigations revealed that most victims were Malaysians working in Singapore," Kumar said in a statement today.
Police also seized four mobile phones, a petrol-filled bottle, red paint-filled bottles, a motorcycle, a car, and nine threatening notices bearing Singapore phone numbers, stationery, and various documents.
With the arrests, police solved nine similar arson attack cases believed to be linked to the syndicate, he said.
The suspects are being remanded until tomorrow.
Investigations are being carried out under Sections 436 and 435 of the Penal Code for mischief by fire targeting homes, punishable by up to 20 years in prison and a fine, and criminal intimidation via anonymous communication.
Kumar said the investigation papers were submitted to the deputy public prosecutor's office and the suspects are expected to be charged at the Johor Baru court tomorrow.