Klang Valley money game firms in crosshairs

THE next wave of action against money game companies will focus on operators based in the Klang Valley.

According to a report in Sin Chew Daily yesterday, the Domestic Trade, Cooperatives and Consumerism Ministry has identified several investment companies as its next targets and expects to act within days, including freezing their bank accounts.

It is learnt that although these companies are based in the Klang Valley, they have branches in other states such as Johor, Malacca and Penang and their investors are multinational, including those from China, Thailand and Indonesia.

A ministry source told the daily that although the companies involved are legal entities as they have registered with the Companies Commission of Malaysia, the online investment schemes they are operating are illegal.

The source said the ministry has initiated investigations on receiving information on the companies’ activities, without having to wait for Bank Negara Malaysia to put them on its financial consumer alert list.

“The people behind these companies are all locals and from different ethnic backgrounds,” said the source.

“We are trying to get hold of the number of their investors and the sums invested. Due to the large number of investors and huge funds involved, we are still unable to ascertain the exact figures. We believe the figures are astronomical.”

Ops Token, the current clampdown on pyramid schemes or money games, which is coordinated by the Attorney-General’s Chambers-led National Revenue Recovery Enforcement Team, involves Bank Negara Malaysia, Companies Commission of Malaysia, police and CyberSecuity Malaysia.

On May 29, some 93 enforcement officers taking part in Ops Token raided three premises of MBI International Sdn Bhd and Mface International in Penang and Kuala Lumpur and three houses.

They seized documents related to the two companies’ business, information on transactions, computers, branded goods, gold bars and jewellery.

Following the raids, a total of RM177 million in 91 bank accounts linked to the two companies were frozen.

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