Director and son claim trial to cheating and misleading investors

KUALA LUMPUR: A father and son, both holding high positions in Syarikat Island Red Cafe Franchise Sdn Bhd, claimed trial to three counts of cheating and misleading investors of over RM1mil.

Company executive director Teow Wooi Huat, 44, and his son Chee Chow, 21, a company director, were charged with committing the offence at the company’s premises in Pandan Indah between Jan 1, 2008 and Feb 28 last year.

They were charged at the Ampang Sessions Court yesterday with fraudulently inducing 93 people to invest RM1,040,400 in a programme called the Island Red Cafe.

They can be fined up to RM30,000 or seven years in jail or both upon conviction under Section 366(3) of the Companies Act 1965.

Both are also charged with violating Section 15(1)(d) of the same Act – by inviting the public to deposit a total of RM21,320,100 into the company’s account for the programme for a period of five years.

For this offence, they could be fined up to RM250,000 or jail up to 10 years upon conviction. They face a third charge of offering the shares of the company to the public through the programme, although at that time the company was not involved in buying and selling shares. They can be fined up to RM250,000 or jail up to 10 years under Section 363(5) of the same Act.

Judge Noradidah Ahmad allowed Wooi Huat a bail of RM100,000 with two sureties, while Chee Chow a bail of RM80,000 also with two sureties.

Noradidah fixed March 9 for the mention to allow them to appoint lawyers.

In an unrelated case, Bank Negara in a statement said it was investigating Semangat Teknologi Gagah Sdn Bhd, formerly known as STG Resources Sdn Bhd, and companies relating to it for allegedly conducting illegal deposit-taking activities.

Bank Negara officers raided the premises of the companies in Kuala Lumpur and Selangor on Feb 4 following public complaints.

The companies were being investigated under Section 4(1) of the Anti-Money Laundering and Anti-Terrorism Financing Act 2001 and subsection 25(1) of the Banking and Financial Institutions Act 1989.

In a statement, Bank Negara also urged the public to refer to www.bnm.gov.my. for a list of licensed institutions approved by the central bank to carry out deposit-taking activities.