KUALA PILAH: The Domestic Trade, Co-operatives and Consumerism Ministry (KPDNKK) has found YSLM, a company owned by self-proclaimed Chinese millionaire Zhang Jian, 26, to be an illegal company.
Its secretary-general Datuk Seri Alias Ahmad said initial investigations showed the owner came to Malaysia and set up a get-rich-quick pyramid scam through the firm.
"It was found that the company was not registered with the Malaysian Registrar of Companies and does not have a licence from KPDNKK to conduct multi-level marketing (MLM).
"Therefore the company is illegal as it was not formed according to the law," he told reporters after a breaking of fast function at Kampung Galau Kariah mosque, Seri Menanti, near here, on Wednesday. Also present was Minister Datuk Seri Hasan Malek.
He said the company was found to be carrying out online business and claimed investors had only to invest as little as RM300 for them to receive a return of between RM2,700 and RM6,000 a month without having to work.
"From the information gathered, approximately RM300mil had been collected under the scheme so far.
“We started receiving complaints from victims two months ago, and we believe the company started operations early this year.
"To date, there are two cases in Selangor, and we started investigation on Feb 7 this year.
“One of the cases is almost completed and the Attorney-General has asked us to take a statement from some witnesses. I cannot reveal further information as it is still under investigation.
"So yesterday (Tuesday), we searched the office premises in Puchong, Selangor and another one in Penang. We found the company was not registered under YSLM but under another firm, CDTUP.” - Bernama
Related story:
Authorities raid third office under MLM scheme
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