KUALA LUMPUR: A 39-year-old ‘Datuk Seri’ was arrested in Melaka today for allegedly masterminding the Kongsi Makan investment scheme that involved losses amounting to RM3.75 million.
The man was arrested when the federal police’s Commercial Crime Investigation Department (CCID) raided his house early today.
CCID director Datuk Seri Acryl Sani Abdullah Sani said the suspect, a chairman of the company, has been remanded for three days to facilitate investigations.
Police seized an imported luxury car, a smartphone and documents.
Acryl said 70,000 to 80,000 people had allegedly been cheated by Kongsi Makan Bhd, a company that was established in 2015 and is still operating.
“This company claimed that they are helping small- and medium-scale enterprises to sell their products through its stockists.
“Investors have to pay RM1,700 for registration and are promised RM800 to RM1,200 in returns within three months, but the promised bonus has not been paid to the victims,” he said today.
The case is being investigated under Section 429 of the Penal Code for cheating and dishonestly inducing delivery of property, and the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001 (AMLATFA).
Acryl also urged more victims to come forward. So far, the police have received 113 reports on the company.
“Keep in mind that cooperation between the police and the public is needed to combat such fraudulent activities from spreading.
“Always check with the relevant government agencies to verify the validity of an investment scheme that promises high returns in a short time,” he said.