SC investigating unlicensed investment schemes

The SC recently raided several locations in Kuala Lumpur and seized records and devices used by the syndicate, following complaints and tip-offs from the public

PETALING JAYA: The Securities Commission (SC) is investigating a syndicate suspected of unlicensed investment schemes that had duped hundreds of investors of over RM7mil.

In a statement yesterday, the SC said the investigation into the syndicate included two clone firm schemes.

“The SC recently raided several locations in Kuala Lumpur and seized records and devices used by the syndicate, following complaints and tip-offs from the public.

“The SC also brought down the servers used by the syndicate to perpetrate the scams. Investigations are ongoing for possible breaches under the Capital Markets and Services Act 2007.”

The SC said initial investigations showed that the syndicate had been operating at least five unlicensed investment schemes since 2016, namely Amal Trust, Asia Equity Ventures, Equity Global, Lindale Ventures and Waheed Ventures.

The SC is urging members of the public who have had dealings with these unlicensed schemes or their representatives to come forward and provide any relevant information that could assist with the investigations.

“All the five schemes have been added into the SC’s Investor Alert list and the SC had also requested the Malaysian Communications and Multimedia Commission to block the relevant websites.

“The SC would like to remind investors to always exercise caution when evaluating investment opportunities, especially those promising very high returns with little or no risk and to seek the counsel of licensed and legitimate advisors.”

The SC said clone firm schemes are used by perpetrators that fraudulently impersonate legitimate entities and use non-existent investment opportunities to entice victims with unrealistically high returns within a short span of time.

“The victims are often instructed to provide personal information such as their name, NRIC number and bank details, after which they will be directed to transfer funds to a designated bank account of the scheme based on their preferred investment plans for a specified period of time.

“However, upon maturity of the investment plans, victims are unable to withdraw or redeem their investments.”

The SC also urged members of the public who are being approached for any suspicious investments to refer to the Royal Malaysia Police’s “Semak Mule” application to verify if a bank account or phone number has been used for fraudulent activities, or if its owner has any criminal records.The SC said investors can verify the status of individuals or companies offering investing opportunities via its website.