Syndicate gains millions from fake portfolios

PETALING JAYA: Tens of millions of dollars were lost after an international syndicate with bases in the country successfully scammed overseas victims with fake investment portfolios in the past few years.

A joint operation by the Malaysian Anti-Corruption Commission (MACC) – together with the Immigration Department, Inland Revenue Board and Cyber Security Malaysia – led to the arrest of 81 suspects including British and Philippine nationals.

Dubbed Op Tropicana, the simultaneous raids were conducted at 24 locations in Kuala Lumpur and Penang on Tuesday.

These included three call centres or “boiler rooms”.

“The raids were conducted via intelligence-based investigation, financial investigations, covert operatives, undercover and several other methods. Surveillance was also obtained with our agency partners in Australia and other countries as well as MACC’s Anti-Money Laundering Division (Amla),” MACC chief commissioner Tan Sri Azam Baki told Sinar Harian.

Syndicate members included those from Australia, Britain, South Africa and the Philippines.

“It is believed that they cheated victims from Australia and Britain by getting them to put money into non-existing investments.

Failed escape: A New Zealand national being put on a gurney after he fell while trying to escape a raid in Petaling Jaya. — KEVIN TAN / The Star

“These scammers are believed to have reaped around A$60mil (about RM182mil) from victims since 2019.

“However, this operation is part of a larger international syndicate that is believed to have cheated victims worldwide of some RM1bil,” he added.

Azam is scheduled to hold a press conference on Op Tropicana at the MACC office in Putrajaya today.

The syndicate, he added, is also believed to have bribed the authorities to protect its members and allow their operations to be conducted here.

MACC Amla director Datuk Mohamad Zamri Zainul Abidin told the daily that the raids saw the arrest of 11 suspects, with a further 70 by the Immigration Department.

He added that RM11mil in 74 bank accounts belonging to business and personal holders were frozen.

During the raid at a call centre in a commercial hub here, a New Zealand national tried to escape but was injured after falling from the 14th floor to the 11th. He suffered a broken hand and leg.

Yesterday, 10 suspects, including five British nationals, were remanded at the Putrajaya Magistrate’s Court. The others were three Malaysians and two from the Philippines.