30 Individuals Lose RM1.25 Million In Ponzi Scheme

in Crimes/Top News

KUALA LUMPUR – Thirty people have claimed to have incurred a RM1.25 million loss in a Ponzi scheme after being cheated by a company purportedly offering utility and top-up payment services.

Muslim Consumers Association of Malaysia (PPIM) legal bureau chairman, Datuk Hishamuddin Hashim said the company operated by a councillor of a state and his partner since 2016, allegedly promised huge returns of up to 113 per cent to its investors.

“For instance, if the investors pay RM13,800, they will get RM27,280… if they pay RM23,000, they will earn RM49,600 in 48 weeks,” he told a press conference at the Sentul police headquarters here today.

Hishamuddin said the association had forwarded the case to the police for further action after negotiations with the company owners had failed.

“I am appealing to the police to investigate the case as it is considered fraud.

“Most of the victims are former civil servants and they have used their pensions to join the scheme, hoping it will generate income. (As such,) stern action must be taken,” he said.

One of the victims, Arbaan Abdul Mokti said he paid almost RM150,000 when joining the scheme in early 2016.

“At first, I received the returns. However, there was a problem in the scheme in November 2016 and the company did not pay the refund as promised,” said the 60-year-old man from Seri Manjung, Perak. – BERNAMA