Malaysian firm al­legedly took peo­ple for mil­lions

The Myanmar Times - - Front Page - HTIN LYNN AUNG htin­lyn­naung@mm­times.com

A Malaysian com­pany reg­is­tered un­der Myan­mar cit­i­zens’ names is al­leged to have swin­dled more than a mil­lion dol­lars from in­vestors, and the sus­pects have ap­par­ently dis­ap­peared, said po­lice in Ka­mayut town­ship.

A COM­PANY owned by Malaysians and reg­is­tered un­der Myan­mar cit­i­zens’ names is al­leged to have swin­dled more than a mil­lion dol­lars from in­vestors, and the sus­pects could no longer be con­tacted and are be­lieved to have fled the coun­try.

Myan­mar Jun­well Global Co. Ltd, which in­vited in­vest­ment in J Coin and J Card shop­ping cards, was reg­is­tered at the Di­rec­torate of In­vest­ment and Com­pany Ad­min­is­tra­tion (DICA) with registration num­ber 1924/205(YGN), un­der the names of Myan­mar cit­i­zens Daw Nwe Nwe Aung and Daw Wint Wah Phyu as di­rec­tors.

The firm, which was reg­is­tered on Septem­ber 23, 2015, was al­legedly con­trolled by Malaysians iden­ti­fied only as Alan, Brian, Daniel and Adam.

A to­tal of 15 peo­ple have filed com­plaints against the com­pany and the sus­pects, claim­ing an ag­gre­gate loss in in­vest­ments amount­ing to about US$1.5 mil­lion (K2.03 bil­lion), Sub Lieu­tenant Soe Thu from Ka­mayut town­ship po­lice sta­tion told The Myan­mar Times.

“There are about 15 peo­ple who com­plained. All of them have the con­tracts for get­ting monthly prof­its from their shares,” Sub Lieu­tenant Soe Thu said.

“Dam­age amounts dif­fer. Some of them have al­ready with­drawn the prof­its equal to two thirds of their in­vest­ment. But when it was time to with­draw the prin­ci­pal, changes were made in com­pany’s re­spon­si­ble per­sons. Then, share­hold­ers no longer be­lieved them and it was found all money had been gone when checked. One ex­ec­u­tive director of the com­pany was among the com­plainants,” the po­lice of­fi­cer added.

Share­hold­ers lost money rang­ing from $5000 to $10,000, $20,000, $30,000 and $40,000 but it isn’t a cog­niz­able case, he added.

“As there are many com­plainants and facts are not com­plete, we didn’t open it as a cog­niz­able case and we re­ceived it (the com­plaint) to be able to pros­e­cute at the court. As of now no civil law­suit has been made yet. To file a suit, they have to do it per­son­ally,” Sub Lieu­tenant Soe Thu said.

“It is like they will first try to ne­go­ti­ate in­ter­nally. When they come to the po­lice sta­tion, we will help them,” he added.

The Myan­mar Times was un­able to reach the of­fi­cials from the Myan­mar Jun­well Global de­spite sev­eral at­tempts.

The com­pany sold J Coin and J Card shop­ping cards and gave monthly in­ter­est at 3 per­cent to 5 pc on a stip­u­la­tion that the prin­ci­pal amount could be with­drawn only af­ter one year.

“We are plan­ning to hold a press con­fer­ence re­gard­ing this swin­dle,” U Kyaw Swa Hein, who worked as a director at that firm un­til June 7, told The Myan­mar Times.

J Coin and J Card en­ti­tle hold­ers to a 5pc to 10pc dis­counts when buy­ing at the com­pany’s net­work of restau­rants and stores. Th­ese cards were sold at K12,000 each and they had bonus sys­tem for best mar­ket­ing staff.

The busi­ness model ap­peared to be sim­i­lar to multi-level mar­ket­ing and for that rea­son some em­ploy­ees had re­signed from the firm.

This scam is re­lated to Myan­mar Se­cu­ri­ties Ex­change Law and there had been some com­plaints, U Htay Chun, a mem­ber of Se­cu­ri­ties Ex­change Com­mis­sion of Myan­mar told

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