MBI ‘top official’ arrested, RM27mil bank account frozen

  • Nation
  • Tuesday, 20 Jun 2017

GEORGE TOWN: A bank account holding RM27mil has been frozen following raids on MBI Group International, and it is learnt that a top official of the Group has been arrested.

The raids were conducted by the Domestic Trade, Co-operatives and Consumerism Ministry with the assistance of Bank Negara Malaysia, the police, and the Attorney-General's office.

In a brief statement on Tuesday, the Ministry revealed that operations were conducted in Penang and Kedah on Monday, and that authorities have frozen the bank account belonging to a suspect.

The suspect's identity was, however, not made known.

Cash of RM688,000 and three luxury vehicles were also seized in the operations.

Law enforcement officials are expected to give more details at a press conference later Tuesday.

On May 31, a total of RM177mil in 91 bank accounts was frozen following raids on several locations linked to MBI International.

A multi-agency team raided the M Square logistics centre in Kuala Lumpur and M Mall, a shopping complex in Penang where shoppers use loyalty reward points in exchange for goods.

Dubbed Ops Token, the raids were conducted under the Direct Selling and Anti-Pyramid Scheme Act 1993 and led by officers from the ministry, police, Companies Commission of Malaysia, CyberSecurity Malaysia and Bank Negara.

The raids came after the ministry received complaints from the public, but no arrests were made, according to its enforcement chief Datuk Mohd Roslan Mahayudin.

He said the accounts were frozen under the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001.

He added that the accounts were with eight different banks, 43 of them company accounts and 48 under individuals.

MBI International was earlier red-flagged by Bank Negara for having a questionable financial scheme.

Members put money into the scheme and get a number of virtual coins in return.

After an “incubation period” of over a year, they can then convert these coins into points to spend on goods and services at retail establishments under the MBI umbrella, such as M Mall.

The scheme is said to give substantial returns each year and is believed to be the longest-running financial scheme founded in Penang.

Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 1
Cxense type: free
User access status: 0
Subscribe now to our Premium Plan for an ad-free and unlimited reading experience!

Next In Nation

MACC open to falling under purview of Dewan Rakyat, says chief graft buster
Cops detain two local men, seize contraband liquor worth over RM200,000
Downpour disrupts state-level Chap Goh Meh celebration at Penang’s Esplanade
Foul-mouth MPs to be fined RM1,000 or suspended, says Dewan Rakyat Speaker
MCMC Blocked 6,381 online gambling websites
Sabah rights body supports move by SLS not to drop judicial review of 40% special grant
Johor floods: 506 people still unable to return home from relief centres
Fatwa on religious rituals offers good guidance, says Council of Churches Malaysia
No water-borne diseases reported on Pangkor Island, says Perak exco member
Melaka’s St Paul’s Church in state of neglect

Others Also Read