GEORGE TOWN: Penang police have crippled an investment scam which had promised investors monthly returns of 30 per cent.
Losses from the scam have totaled more than RM700,000.
Penang police chief Datuk A. Thaiveegan said police sprung into action after several victims lodged reports on the activity.
"We arrested three people, including two women in their 40s, to aid our investigation," he said.
Initial checks, he said, showed that the suspects had promised investors a return rate of one per cent daily, which totaled 30 per cent a month.
He said police would apply for a remand order against the trio today. The case would be investigated under Section 420 of the Penal Code for cheating.
“The suspects’ assets will also be frozen under anti money-laundering laws. We will go all out to eliminate this kind of cheating cases,” he said.