Malaysian firm allegedly took people for millions
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 Some of them have already withdrawn the profits equal to two thirds of their investment.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