PONTIAN: A project supervisor has lost RM200,400 in a nonexistent online stock investment scheme that promised returns of up to 80%.
Pontian OCPD Supt Hadzrat Hussien Mion Hussain said the 45-year-old victim lodged a police report on Sunday (May 24) claiming he had been scammed.
He said the victim joined an online stock investment group through a link on Instagram while at home in Taman Megah here on Feb 6.
"The victim communicated with several individuals who introduced a stock investment opportunity using a trading application and managed by a US-based private investment firm.
"The victim was also added to a WhatsApp investment group and convinced that the scheme could generate high returns of up to 80%," he said here on Monday (May 25).
Supt Hadzrat Hussien said the victim began making deposits in the scheme between March 9 and May 19.
"The total amount transferred by the victim reached RM200,400," he said, adding that the victim was later told he had successfully obtained initial public offering (IPO) shares worth about RM380,000.
However, when the victim attempted to pull out because he could not afford to make the full payment, his request was rejected, Supt Hadzrat Hussien said.
"The victim was instead persuaded to continue making further payments," he said.
Supt Hadzrat Hussien added that problems arose when the victim wanted to withdraw his profits and close the trading account, which according to the application showed a positive balance of RM2.66mil.
"The suspects demanded a commission payment amounting to 20% of the IPO profits before any withdrawal could be made.
"The victim’s request to deduct the commission directly from the balance in his trading account was also rejected," he said.
The victim then became suspicious after he was unable to withdraw the balance shown in the trading account and the suspects gave him excuses that seemed unreasonable.
He subsequently lodged a police report, alleging losses amounting to RM200,400.
The case is being investigated under Section 420 of the Penal Code for cheating, which carries a jail term of between one and 10 years, caning and a fine upon conviction.
