KUALA LUMPUR: Investigations into the accounts of the recently-raided gold trading firms reveals that the amount of assets and monies held by these companies do not match the amount collected from their investors.
The schemes offered by the firms were, therefore, unsustainable, said Bank Negara, the Attorney General's Chambers and the police in a joint press release on Wednesday to give an update on the matter.
“Based on surveillance and examination conducted on these companies, it has been discovered that these companies are operating schemes that are believed to be not sustainable to provide the promised high monthly returns, nor would they be able to provide the buy back guarantee of gold.
“Such schemes are not sustainable because the returns promised are not funded through gold trading, but from the monies invested into such schemes.
“Prior to the joint raids, it has been noticed that these companies had delayed returning gold or money to the investors within the promised stipulated time.
“Such signs are early warning indications prior to the collapse of such schemes that would result in significant losses to investors.
“These raids were conducted in the interest of protecting the investors as well as the public at large from falling victim to illegal schemes,” the statement said.
Gold trading firms Pageantry Gold Bhd, Caesar Gold Sdn Bhd and Worldwide Far East Bhd were jointly raided on Friday by the police, Bank Negara and Ministry of Domestic Trade, Cooperatives and Consumerism for suspected offences that include illegal deposit-taking, money-laundering, tax evasion and avoidance and false description.
On Oct 2, the three bodies jointly raided gold trading firm Genneva Malaysia Sdn Bhd and its affiliates in the country for various suspected offences.
Singapore's Commercial Affairs Department also conducted a similar operation against Genneva Pte Ltd in the republic on the same day.
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