Two held in Labuan over RM1.3mil scam

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Two held in Labuan over RM1.3mil scam
Published on: Saturday, July 07, 2018

Labuan: Two men have been detained by police for allegedly operating a get-rich-quick scheme here that has garnered RM1.3 million over the past four months.

One of the men, a 24-year-old from Menumbok, Sabah, was arrested at 6pm on Thursday and the other, a 54-year-old Indonesian living in Labuan, was picked up at 6pm on June 25, Labuan Police Chief Supt Muhamad Farid Ahmad said Friday.

He said the men were arrested by the Labuan Police Commercial Crimes Investigation Department head, ASP Haslina Hassan, and his team after two people who claimed to have lost RM193,000 and RM10,000, respectively, had lodged police reports.

Farid said the men were being held on remand for seven days from Friday.

At least 650 people had invested in the scheme and several of them were VIPs, with one of them having the title of “Datuk Seri,” he told a press conference.

He also said two vehicles – a Toyota Vellfire and Nissan Fair Lady – bought with cash were expected to be seized from a secret location on the Sabah mainland and brought back to Labuan.

“We have seized three cheques with the amounts totalling RM444,450, ATM cards, a company stamp, a cheque book and handphones from the arrested men,” he said. Farid said the scheme was run similar to a multi-level marketing format and the recruited downline investors were promised huge returns.

Potential investors were promised that for a minimum investment of RM1,800, they could secure a return of RM1,300 in the following month, he said.

They were also told that a maximum investment of RM37,800 would earn them RM33,000, and that the investment contract was for a period of five to 10 years, he added.

Farid also said the potential investors were duped into believing that the scheme was similar to bitcoin trading and the yield or output could be in any of a number of currencies.

The case is being investigated under Section 420 of the Penal Code. Farid advised the people to stay clear of any get-rich-quick schemes which are not registered under Bank Negara Malaysia. – Iffah Dilaney

Source: http://www.dailyexpress.com.my/news.cfm?NewsID=125617

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