YSLM still in operation, says minister

  • Nation
  • Friday, 18 Jul 2014

PUTRAJAYA: The multi-level marketing company related to self-proclaimed millionaire Zhang Jian is still believed to be in operation more than a week after a crackdown by the authorities.

Domestic Trade, Cooperatives and Consumerism Minister Datuk Seri Ha­­san Malek said no action would be taken until sufficient evidence had been gather­ed.

The ministry had so far received information on the company’s background and history, he said.

“We are gathering strong evidence to allow us to take stern action (including) freezing their accounts and revoking their licence.

“We are going to do all these but we need strong evidence,” Hasan said when met by reporters at the launch of the Jom Beli Barang Raya at Putrajaya consumer sales event here yesterday.

Earlier this month, Hasan has said that the company, known as YSLM, was being investigated for having contravened the Direct Sales and Anti-Pyramid Schemes Act 1993.

Ministry secretary-general Datuk Seri Alias Ahmad had said initial in­­ves­­tigations showed that Zhang, 26, had come to Malaysia and set up a get-rich-quick pyramid scam through the firm.

Under the Act, a person or company can face a maximum fine of RM10mil or five years’ jail if found guilty of promoting or conducting a pyramid scheme.

The ministry said the com­pany was not registered with the Registrar of Companies and did not have a licence from the ministry to conduct multi-level marketing activities.

However, this was rebutted by the management of the company, which had maintained that it had an operating licence and that the controversy it was embroiled in was “a misunderstanding”.

The company’s charity wing chairman Datuk John Lee Kim Tian reportedly stressed the company was “com­pletely legal” and that Zhang would hold a press conference soon to address the issue.

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