KUALA LUMPUR: A group of investors have sued investment company, Qew Group Bhd, and two of its office bearers over allegations of fraud, linked to a RM20.5mil accumulated investment.
The group was composed of 111 individuals aged between 28 and 89.
They named Qew Group, its shareholder Datuk Dr Muhamad Iqbal Mohamad, 47, and director Mohd Fairoz Muhammed, 47, as the first, second and third defendants, respectively.
The writ of summons was filed through Messrs Azri & Co on April 3.
In the statement of claim, the investors claimed that between 2022 and 2024, the defendants influenced them to invest and subscribe to investment scheme RPS-i, which the defendants managed.
Prior to joining the scheme, Qew Group, through Muhamad Iqbal and Mohd Fairoz, represented that the investment scheme was structurally sound, safe, Syariah-compliant and could generate consistent monthly dividends.
Each of them allegedly invested amounts ranging from a low of RM50,000 to a high of RM1.7mil, with the promise of profitable returns.
"In the beginning, the dividend payments were made as promised to the plaintiffs. However, after some time, Qew Group began to stop its obligation when dividends were delayed, reduced and ultimately stopped without any financial explanations or accounting disclosure," the statement said.
The plaintiffs claimed that when they questioned the failure of dividend payment, the defendants told them that the dividend payment was subject to the sole and absolute discretion of Qew Group, which the plaintiffs claimed was never reasonably explained to them as a primary risk when the investment scheme was offered.
An extraordinary general meeting was called on Sept 5, 2024, where the second and third defendants attended.
The plaintiffs claimed that a resolution was achieved in the meeting where the company offered an "exit plan" for investors to redeem their shares at RM1 per unit.
An internal memo was subsequently issued, dated Oct 30, 2024, informing that the redemption and dividend payment would be carried out in 90 days through three phases.
However, the plaintiffs claimed that they have yet to receive the payment until today.
The plaintiffs are seeking a court order for the first defendant to pay RM20.5mil to them and a declaration that the second and third defendants were negligent and cheated them on their investment.
They are also seeking a court order for the second and third defendants, either together or separately, to pay exemplary damages of RM20.5mil for negligence, false representation and conspiracy to defraud.
They are also seeking general and aggravated damages of RM1mil.
In their statement of defence, the defendants claimed that the RPS-i investment did not create a debtor-creditor relationship between Qew Group as the first defendant and the investors, and that this could not be categorised as an absolute obligatory repayment as a conventional loan contract.
"Any returns, distribution or redemption is subject to the terms of the RPS-i agreement, the first defendant's financial position and relevant corporate decisions at all material times," the statement said.
Lawyer Dr Hizri Hasshan, who represented the plaintiffs, told the media that the case has been fixed for case management on July 6 before Judicial Commissioner Asmadi Hussin.
