GEORGE TOWN: Two more popular financial schemes in Penang have been red-flagged by Bank Negara Malaysia (BNM).
A check on the financial consumer alert list yesterday showed MBI International Sdn Bhd and Mface International Sdn Bhd to be the latest additions.
Both are subsidiaries of MBI Group International, a company with investors worldwide, many of them from China.
To date, 302 companies have been listed under the BNM financial consumer alert list, for suspicion of not adhering to relevant laws and regulations administered by BNM in their operations.
Under the Financial Services Act 2013, individuals or businesses involved in illegal financial activities can be fined up to RM50mil and jailed for 10 years.
When contacted by a Chinese daily, MBI International chairman Tedy Teow’s special assistant Alfa said he did not think that the company would face any problem.
“And it is unnecessary for us to hold a press conference to explain the situation to our investors.
“We are always doing our work and we believe that our investors can see how we are performing so far,” he told Sin Chew Daily.
An investor, H.L. Teoh, said he put in RM22,500 early this year and was given 10,000 game redemption credits.
“Actually, I can start selling it every six months, but I was advised to wait for it to grow bigger in three years.
“When you have lots of credit, it is like having a lot of virtual shares.
“Now, I will have to wait for further instructions from the company before my next course of action,” he said.
Members are allowed to spend their loyalty points, which are converted from virtual money or coins, in exchange for goods and services at affiliated companies, including a supermarket, restaurants, a gym and even a durian stall.
Meanwhile, a press conference called by a branch representative of another controversial financial scheme operator, JJPTR, was cancelled at the last minute.
Press members in Penang had received an invitation from a man known only as Lim at 8.30am yesterday.
However, no reason was given for the cancellation.
JJPTR has been grabbing headlines in the past few weeks since its founder Johnson Lee claimed that the company had lost US$400mil (RM1.738bil) due to a purported “hacking job”.
Lee and two of his top aides have been detained by the police to facilitate investigations following several police reports lodged against JJPTR.
In another case, 19 Chinese nationals lodged police reports in Kuala Lumpur against another multi-level marketing company, claiming that they had lost hundreds of thousands of ringgit.
They claimed to have lost between 100,000 yuan (RM62,536) and 700,000 yuan (RM437,754) since investing in the scheme by Monspace last year.
Founded in 2014, Monspace is listed as a multi-level marketing company, according to the Companies Commission of Malaysia.
In an immediate response, Monspace said it would take legal action against any group or individual making defamatory statements against it.
The company said in a statement to the media that it was functioning professionally and had engaged a law firm to keep track of statements made about it.