KUALA LUMPUR: A 'Datuk' accused of defrauding hundreds of investors, resulting in losses of approximately RM1 billion, has been ordered by the High Courts in Malaysia and the United Kingdom (UK) to pay Zavarco Group over RM600 million for various breaches of fiduciary duties.
Zavarco Investor Relations executive BS Maniam, said that this involves final judgments from courts in Malaysia and the UK against the individual for various corporate offences and fund misappropriations, including breach of trust.
"Several judgments that were made include 101.5 million Euros (approximately RM512 million) in the UK High Court for wrongfully issuing shares of the public company (Zavarco Plc) to himself without cash consideration.
"A judgment of RM29 million (excluding interest) was made in the Malaysian High Court for manipulating Zavarco Berhad's accounts falsely to claim money for himself as repayment for directorial advances.
"A judgment of RM61 million (including punitive and exemplary damages but excluding interest) was also made in the Malaysian High Court for diverting RM12 million of investor funds into his personal account," he said in a statement.
Meanwhile, Bukit Aman Commercial Crime Investigation Department director, Datuk Seri Ramli Mohamed Yoosuf, mentioned that they are verifying claims that the suspect was also involved in investment activities.
"Previously, we received a report from a foreign man regarding an alleged nonexistent stock purchase on April 16, 2019, and the case is being investigated under Section 420 of the Penal Code.
"The investigation revealed that the complainant made payments of nearly RM40 million to an account provided by the suspect for shares in his (the suspect's) company, but the promised shares were not acquired," he said.
He added that the suspect has gradually returned the complainant's investment of RM10 million and handed over his shareholding in a foreign-based company to the complainant.
"These investigation findings were then referred to the deputy public prosecutor, who decided that the complainant should initiate civil proceedings to recover the losses suffered.
"However, the police are actively working to verify claims that the suspect is also involved in fraudulent investment activities," he said.
Previously, the New Straits Times reported that a businessman with a 'Datuk' title was accused of defrauding hundreds of investors, resulting in RM1 billion from fraudulent investment activities conducted over several years.
The matter was revealed by cosmetics entrepreneur Shah Abdul Malek, 51, who claimed to have suffered losses of about RM5 million after funds invested by him, friends, and family were misappropriated by the individual in question.
Furthermore, a businessman from the United Kingdom, Lee Roger Meiklejohn, 50, claimed to be a victim of the Datuk after being introduced by a broker.
He alleged that he was defrauded of nearly £10 million (approximately RM60 million) after being offered to invest in a company with various offers and lucrative returns.