Victims claim the franchise was promoted by a couple with the promise of high returns
KUALA LUMPUR: A group of 107 individuals has lost RM2.4mil to an investment scam. Each of them lost RM10,000 to RM250,000.
The victims were approached by a local married couple on the prospect of investing in a dental service franchise, with the promise of high returns.
One of the victims, Gerald Chee Ka Onn, 44, said he lost about RM10,000.
“The husband and wife are directors of the company. The wife is also my college mate.
“They approached me in July 2021 to invest in their company, with the ultimate goal of setting up dental clinics around the country.
“Impressed by their pitch and trusting my old college friend, I decided to invest in the company, hoping for decent returns,” he told a press conference.
The press conference was organised by MCA Public Services and Complaints Department head Datuk Seri Michael Chong at Wisma MCA here yesterday.
Chee said that barely two years into the investment, he discovered that both company directors had gone missing.
He said the company was being sued before it eventually closed down in December last year.
Painful loss: Kho (sitting, centre) speaking to the press as Chong (second from right) looks on at Wisma MCA in Kuala Lumpur. — IZZRAFIQ ALIAS/The Star
“We discovered that the total investments from 107 investors was RM2.4mil and all lost their money.
“We tried to contact both directors to no avail,” Chee said, adding that they had lodged a police report.
Another victim, Teoh Chek Wee, 43, said he lost about RM250,000.
“I looked at the company profile and was impressed prior to investing. I never expected it to end up in smoke and my money gone,” he said.
A victim, who only wished to be known as Kho, said she wished to have the press conference to remind others not to fall for the same trick.
“We hope the people will not fall victim to such scams. They must be very careful before investing in any schemes,” she said.
Meanwhile, Chong has received more than 10 investment scam cases with losses surpassing RM5mil since last year.
“The modus operandi of the investment scams is more or less the same.
“The victims will either be approached by friends or individuals on social media, who promise high returns in a short time.
“Everyone must remember that if something sounds too good to be true, most likely it is a scam,” Chong said.
He reminded the public to conduct checks with Bank Negara and the police before deciding to invest in such investment schemes.
“Verify the authenticity of a company before investing as once your money is lost to scammers, you will most likely not see it again.
“Constant vigilance is very important,” Chong added.
