Crime & Courts

Datuk Seri among those arrested for forex scam

KUALA LUMPUR: Police crippled a foreign exchange (forex) syndicate that fleeced investors of RM2.94 million with the arrest of 10 people, including a Datuk Seri.

Federal Commercial Criminal Investigation Department (CCID) deputy director Datuk Mohd Kamarudin Md Din said nine men and a woman, aged between 29 and 64, were arrested in raids conducted in Perak, Selangor, Kuala Lumpur, Melaka and Johor on Jan 1.

He said the Datuk Seri was the mastermind and has a master's degree in business administration.

He added that the syndicate has been active since 2018, targeting locals and promising weekly returns of between 12 and 14 per cent from the amount they invested.

"The investors were told that their money will be invested into various mediums to generate big profits.

"They will be given an investment website link along with a password so they will be able to see the amount of profits received after logging in to the website. However, they cannot take out the profits or transfer it elsewhere.

"The syndicate then cut off the means of communication with the investors after obtaining a large amount of investments and halted the investment scheme.

"The investors then felt cheated for not getting the promised returns," he told a press conference today.

Kamarudin said the minimum investment was US$100, adding that to date, a total of 23 cases were being investigated related to the syndicate.

He said four of the individuals have criminal records related to fraud.

"Nine suspects have been remanded until today (Jan 5), while another remand ended yesterday and we will extend the remand further when needed.

"The case is being investigated under Section 420 of the Penal Code; Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001 (AMLA) and the Prevention of Crime Act (Poca) 1959."

Kamaruddin said during the raids, police seized nine luxury cars worth RM4.6 million, 64 luxury watches worth RM98.9 million and five gold bars worth RM1.45 million.

"Also seized were mobile phones (21), ATM cards (46), credit cards (four), laptops (10), cryptocurrencies (worth RM21 million) and RM100,800 cash, among others," he said, adding that the total amount seized was estimated at RM126.9 million.

He added police also seized one ex-police association membership card and a Datuk membership card.

Meanwhile, Kamarudin said CCID investigated 3,195 cases of investment scams last year involving losses amounting to RM245 million, with 1,833 individuals arrested.

Most Popular
Related Article
Says Stories