FINED RM50,000 OVER KOOTU FUND
Case involves RM100,000 from 5 victims but scheme is likely larger, says prosecutor
ANASI lemak seller yesterday was fined RM50,000, in default a year’s jail, by the Sessions Court here after admitting to running a kootu fund.
The prosecutor said Nor Jaimah Kamarudin, 38, was the first person to be charged under the Kootu Funds (Prohibition) Act 1971 since it was amended in 2011.
A kootu fund is where participants make periodic payments to a common fund. A participant can win a large sum of money through a method — usually a lottery mechanism — set by the group leader.
The offence carries a maximum 10 years’ jail or RM500,000 fine or both upon conviction.
The mother of three pleaded guilty to organising a kootu fund for five people through Facebook between January and August
2018, before judge Norhayati Mohamad Yunus.
Nor Jaimah was charged in Kuantan in 2020 and the case was transferred here.
Dr Shamsher Singh Thind, who represented Nor Jaimah, urged the court to take into consideration that this was his client’s first offence.
He said his client’s admission of guilt had saved the court’s time and resources.
“Although she pleaded guilty to the charge, she did not gain any profit from the kootu fund. Since a jail term is not mandatory, I urge the court to impose a reasonable fine as she is a mother of three boys, aged between 4 and 8.”
Companies Commission of Malaysia (CCM) prosecutor Mohd Iqbal Mohd Yusoff said Nor Jaimah organised a kootu fund for a group of five people.
“Investigations were carried out by CCM in September 2018 based on police reports made in Kuantan, which led to oral testimonies and documents implicating Nor Jaimah.
“Based on the evidence presented by the five, Nor Jaimah was responsible for organising a kootu fund from January to August 2018.
“The evidence also showed that she had used a personal bank account for receiving and paying the proceeds of the money collected from the participants,” he said, urging the court to mete out a sentence based on public interest and safety.
“This is not a traditional kootu this offered profits. It has economically impacted the five women, who are housewives.
“The punishment needs to be in accordance with the offence to serve as a lesson to her and the public.”
Outside the courtroom, Iqbal said this was the first case since the act was amended in 2011.
He said other cases were investigated but were never brought to court.
He said this case involved more than RM100,000, but the exact amount in the scheme was unknown as only five people reported the matter.
“But based on our knowledge, there may be more people affected,” he added.
Nor Jaimah paid the fine.