SSM raids illegal investment scheme premises, seizes RM140 million

KUALA LUMPUR: The Companies Commission of Malaysia (SSM) has raided several premises of a trust company that operates an illegal investment scheme known as Kenaf Development Fund (KDF), on Thursday.

SSM in a statement said that the raid in cooperation with the Royal Malaysian Police (PDRM) and Cyber Security Malaysia was carried out simultaneously in three locations namely in KL Sentral, Petaling Jaya and Seberang Perai. It said the raid was carried out following complaints received from KDF investors stating that the company had failed to pay the return as promised.

“The KDF investment scheme was first offered to the public from September 2021 to January 2023 and has raised almost RM140 million from 1,919 investors. The modus operandi of the KDF investment scheme is that investors were promised a return of around three per cent a month and after 12 months, investors will receive their investment money back and this scheme is organised to finance a kenaf tree planting project in Cuping, Perlis,” he said.

According to SSM, preliminary investigations found that the KDF investment scheme was not registered under the Interest Schemes Act 2016 and the chief executive officer of the company who masterminded the scheme was a bankrupt individual.

“As a result of the raid operation, SSM confiscated the company’s account records, documents related to the organisation of KDF and the suspect’s mobile phone.

“The investigation is conducted under Section 43 of the Companies Act 2016, Section 198 of the Companies Act 2016, Section 213 of the Companies Act 2016 and Section 3 of the Interest Schemes Act 2016,” he said.