2 datuks among 14 held over scam

175REPORTS: Kelantan-based firm conned more than 500,000 people of RM10m

POLICE have crippled a Kelantan-based investment syndicate with the arrest of 14 individuals, including a popular comedian, on Wednesday.

The scam, run by a Datuk, was believed to have conned more than 500,000 people, but only 175 reports had been lodged.

The investment company, which allegedly had more than RM35 million in paid-up capital and claimed to be syariah-compliant, had attracted many investors, especially teachers and artistes.

Under an operation codenamed Op Nuri, police picked up the 14 individuals, including a “Datuk” and “Datuk Seri”, believed to be the founders of the company.

The 44-year-old comedian cum actor, whose role was to protect and provide a house for the group to operate, was nabbed in Cyberjaya, Selangor. It was learnt that five women were also arrested in the operation.

All of the individuals detained were senior members of the company, aged between 28 and 58, and were picked up at several locations, including Kelantan, Pahang, Malacca, Penang and Klang Valley.

The operation also saw police seize nine cars worth more than RM1 million from the suspects.

Several bank books, mobile phones, laptops, branded handbags and jewellery were also seized under the Anti-Money Laundering Act.

It was reported that the operation was conducted following the reports lodged by investors who claimed they were cheated by the company.

The complainants claimed they were conned of more than RM10 million by the company.

The investment scheme was established to “assist” those who had failed in business to earn passive income by investing their money in a fund which would be invested in properties and foreign currencies.

With a minimum investment of RM350, one could join the scheme which promised returns of up to RM2,250 by the end of a year. Larger investments would fetch higher returns, sometimes as much as RM70,000.

A victim, who declined to be named, said he had invested RM350 and received RM100 in return after the first month.

“Convinced that I would be able to get more returns if I invested more money, I invested about RM3,000 after a few months of joining the scheme.

“However, I did not receive any returns at all,” he said, when contacted via a social media account.

The victim, along with other friends who had joined the scheme, had tried to contact the introducer, but failed to reach him.

In May, a group of about 100 victims lodged reports at the Northeast police headquarters in Penang to urge the police to arrest those behind the scheme for cheating.