Crime & Courts

Fraudulent investment scheme victims risk losing right to recover losses - CCID

KUALA LUMPUR: Individuals who have fallen victim to fraudulent investment schemes risk losing the right to recover their money even after going through the legal avenue.

Federal police Commercial Crime Investigation Department (CCID) director Datuk Seri Ramli Mohamed Yoosuf said this is due to the funds seized from the syndicate being determined as proceeds of illegal activities, and therefore, victims cannot be considered to have a legitimate legal interest in them.

"Evidence shows that they (investors) have voluntarily and without coercion deposited money into accounts that were instructed, to become investors in the VenusFX scheme and expect a return on the investment," he said during the CCID director's special media conference at Menara KPJ, here today.

On April 24, the Federal Court allowed the prosecution's appeal to forfeit more than RM1.1 million from 79 investors in an illegal deposit taking scheme.

A three-judge panel led by Chief Justice Tun Tengku Maimun Tuan Mat also ordered that the funds be divested of their rights and channeled into government revenue.

In light of this, Ramli cautioned the public against engaging in any unregistered investment schemes, especially those promoted through social media platforms and the like.

When asked about potential scam victims seeking recourse, Ramli explained that such claims could be pursued through a request to investigative officers, though the ultimate decisions lie with the courts.

Moreover, Ramli noted a recent surge in companies offering gold-based investments, a trend driven by current global economic uncertainty and currency fluctuations.

"Based on our investigations, many of these investment schemes end in deception and loss. For instance, if gold prices continue to rise, investors may sell for profit. However, companies may fail to meet gold redemption obligations, resulting in adverse effects for investors," he elaborated.

Therefore, Ramli emphasised the need for a robust mechanism to monitor and regulate investment schemes, particularly those involving gold investments.

"Our department proposes that Bank Negara Malaysia establish more appropriate regulations and ensure that companies offering precious metal-based investments are duly registered with them. This is crucial to safeguard invested funds and mitigate the proliferation of fraudulent investment schemes," he stressed.

– Bernama

Most Popular
Related Article
Says Stories