Seven nabbed, almost RM1mil in cash and assets seized in connection with pyramid scheme

KUALA LUMPUR: Seven people including a Taiwanese have been arrested at a commercial centre in Jelutong, Penang, for alleged involvement in pyramid scheme activities.

Domestic Trade and Consumer Affairs Ministry (KPDNHEP) enforcement director-general Azman Adam said four premises occupied by the suspects in Penang and Kedah were also raided during the ‘Op Reward’ conducted on Wednesday.

He said preliminary investigations showed that the company involved had been promoting the pyramid scheme through online applications and sale of certain packages to the public for the past few years.

"The raiding party seized various documents, laptop computers and handphones to facilitate investigations.

"Nine luxury cars and several branded handbags belonging to the suspects were confiscated, 38 accounts in seven banks were frozen and an amount of cash seized, all worth RM967,720.29,” he said in a statement on Tuesday (Oct 25).

The operation was jointly conducted by the ministry’s enforcement division special task force, National Anti-Financial Crime Centre (NFCC), Bank Negara Malaysia, police and Cyber Security Malaysia.

Azman said the company was suspected to have conducted the pyramid scheme activities in Penang, Kedah, Terengganu and Sarawak, apart from running other business activities.

The case is being investigated under Subsection 4 (1) of the Direct Selling and Anti-Pyramid Scheme Act (AJLSAP 1993) for conducting direct selling without a licence and Section 27B of AJLSAP 1993 for promoting the pyramid scheme.

The suspects are also being investigated under Section 4 of the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act (AMLATFPUAA) 2001 for alleged involvement in money laundering. - Bernama