RM177 mln in 91 bank accounts linked to pyramid scheme frozen

PUTRAJAYA: A sum of RM177 million in 91 bank accounts of pyramid scheme operator MFace Club has been frozen, says the Domestic Trade, Cooperatives and Consumerism Ministry.

Its enforcement director, Datuk Mohd Roslan Mahayudin said this followed an operation on Monday ( May 29) involving raids at three residential premises and two premises in the Klang Valley, as well as one at M Mall in Penang.

“Out of the 91 bank accounts, 43 were under company name and the rest belong to individuals in eight different banks,” he told a media conference here yesterday.

He said the raids on MFace Club scheme — believed to have been operating in the past five to six years — were carried out under the Direct Sales and Anti-Pyramid Scheme Act 1993 (AJLSAP 1993) which was enforced by Bank Negara Malaysia ( BNM) and Companies Commission of Malaysia (SSM) .

The operation which was

Out of the 91 bank accounts, 43 were under company name and the rest belong to individuals in eight different bank. Datuk Mohd Roslan Mahayudin, Domestic Trade, Cooperatives and Consumerism Ministry enforcement director

coordinated by the National Revenue Recovery Team from the Attorney-General’s Chambers and headed by the ministry’s enforcement division was also participated by BNM, SSM, police and Cybersecurity Malaysia, added Mohd Roslan.

According to him, various documents, financial transaction information, computers, and several luxury and branded items were also seized, apart from two gold ingots, branded handbags, watches and jade jewellery.

“There has been no arrest, thus far,” he said, adding that the MFace Club scheme was conducted by MBI International Group.

The MFace Club scheme offered six packages from as low as US$100 to US$ 5,000 which promises high returns and each member was required to recruit two more members, said Mohd Roslan.

He said the investigations were being conducted under Section 4 of AJLSAP 1993 for conducting direct sales business without licence, and Section 27B for promoting pyramid scheme.

BNM is probing under the Financial Services Act 2013 and SSM, under the Companies Act 2016.

He said based on information and evidence obtained in the raids, the scheme and company were believed to be violating Section 4(1) of the Prevention of Money Laundering Act 2001 and Prevention of Terrorism Financing and Proceeds of Unlawful Activities Act 2001. — Bernama