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Tuesday July 8, 2014 MYT 12:00:00 AM
Tuesday July 8, 2014 MYT 9:07:22 AM
by mazwin nik anis
Items for sale: One of the company’s workers showing members some of the products available for purchase in Kuala Lumpur.
KUALA LUMPUR: The multi-level marketing scheme by purported Chinese millionaire Zhang Jian is an illegal set up and authorities will act by sealing its premises if there are activities.
The Domestic Trade, Co-operatives and Consumerism Ministry confirmed the company has never applied for any operating licence from the ministry and cautioned the public against participating in schemes offered by the company.
Its secretary-general Datuk Seri Alias Ahmad has advised those who have made investments in the multi-level marketing scheme operated by Zhang – who proclaimed himself as “the future richest person in the world” – to lodge a police report.
“It is an illegal scheme because the company is not registered with the ministry. Hence, the act of taking deposits from the public is illegal.
“Those involved should lodge a report so that the police can initiate criminal investigations into the matter,” he said.
In George Town, the Penang Municipal Council said Zhang has been operating his business activities on the island without a licence.
The council’s public health and licensing alternate chairman, Ong Ah Teong, said the operator of Yun Shu Mao in Tavoy Road could be fined RM250 for the offence.
“We have not received any application from the operator, and I will ask my officers to check the premises.”
A check at Yun Shu Mao’s office in Tavoy Road found that the business was operating as usual yesterday.
It is believed the company has collected around RM300mil since it began its business in Malaysia some time late last year.
Zhang’s business model has raised eyebrows. According to the company’s online advertisements, people can earn big money without having to work.
By merely investing RM300, members are guaranteed an income of between RM2,700 and RM6,800 a month – without lifting a finger.
Alias has directed the ministry’s state offices to be on the look out for the company and act should there be any activities at the business premises.
He said investigations were also being made on another company to determine it’s co-relation with Zhang’s business outfit.
The other company is a registered entity dealing with cosmetic products.
Tags / Keywords:
Family & Community, multi-level marketing
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