Former company director jailed five years for unlicensed fund management activities and money laundering


PETALING JAYA: The Kuala Lumpur Sessions Court has sentenced Muhamad Fadzli Jamaludin, a former director of Kyaputen Sdn Bhd, to five years in jail after convicting him for offences relating to unlicensed fund management activities and money laundering.

In a statement, the Securities Commission Malaysia (SC) said Fadzli was originally charged on Nov 9, 2023 with three charges under section 58(1) of the Capital Markets and Services Act 2007 (CMSA) for holding himself out as carrying on a business in fund management without a licence.

“Subsequently on Nov 29, 2023, Fadzli faced a further nine charges under section 4(1)(b) of the Anti-Money Laundering, Terrorism Financing and Proceeds of Unlawful Activities 2001 for money laundering. Both cases were jointly tried.

“At the trial, the prosecution called 23 witnesses, including six victims who collectively suffered losses amounting to RM1.263mil. The offences took place between August 2018 and April 2020 in Kuala Lumpur and Melaka.”

Upon defence being called, the SC said Fadzli elected to testify under oath and called no other witnesses in support of his defence.

“In delivering her decision today, Sessions Court judge Puan Hamidah Mohamed Deril found that Fadzli had failed to raise a reasonable doubt in the prosecution’s case.

“She then sentenced him to five years imprisonment for each of the 12 charges, and ordered that the terms be served concurrently.”

The SC said a person who is convicted under section 58(1) of the CMSA is liable to a fine not exceeding RM10mil or imprisonment not exceeding 10 years or both.

“In respect of the money laundering offences, the applicable law provides for a maximum imprisonment term of 15 years and a fine of not less than five times the value of the proceeds of the unlawful activity or RM5mil, whichever is higher.

“Fund management is a regulated activity and any person holding himself out as carrying on fund management business requires a licence from the SC. The SC reminds investors to only deal with individuals and entities licensed by the SC in relation to regulated activities such as fund management.”

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