KUALA LUMPUR: Police have arrested 10 people in connection with an investment scam that misused the name of a reputable firm to dupe 44 victims out of RM21.9mil.
Bukit Aman Commercial Crime Investigation Department (CCID) director Comm Datuk Seri Ramli Mohamed Yoosuf said the suspects, five men and five women aged between 21 and 52, were detained in raids in Selangor, Kuala Lumpur, Johor, Perak, Kedah, Sabah and Sarawak on July 30 and 31.
"The syndicate posed as the investment firm Warburg Pincus to dupe victims.
"We also seized items including eight mobile phones, an ATM card, and a copy of a company registration document," he told a press conference at CCID headquarters here on Tuesday (Aug 13).
Those detained were the scam company owners and directors, he said.
"Investigation showed that the syndicate has been operating since early this year.
"It would advertise on Facebook and communicate with victims via WhatsApp.
"They promised returns of between 11% and 15% to entice victims as well as the services of a 'trading guru'," he said.
Comm Ramli said victims would have to download a mobile application and use it to transfer money to what is believed to be a mule account.
"In the end, the victims did not receive any returns on their investments," he added.
A total of 44 investigation papers involving RM21.9mil in losses have been opened so far, he said.
"We also froze 35 bank accounts containing RM162,598 in funds," he said.
Comm Ramli reminded the public that investment offers on social media platforms must be considered scams.
"It is outright cheating.
"Any offer that is too good to be true is a scam.
"Only invest in schemes certified and approved by authorities such as the Securities Commission and Bank Negara Malaysia," he said.
