KUALA LUMPUR: The Companies Commission of Malaysia (CCM) has raided several premises of a trust company that operates an illegal investment scheme known as Kenaf Development Fund (KDF) on Thursday (March 7).
CCM in a statement said that the raid in cooperation with the Royal Malaysia Police and Cyber Security Malaysia was carried out simultaneously in three locations namely in KL Sentral, Petaling Jaya and Seberang Perai.
It said the raid was carried out following complaints received from KDF investors stating that the company had failed to pay the return as promised.
"The KDF investment scheme was first offered to the public from September 2021 to January 2023 and has raised almost RM140mil from 1,919 investors.
"The modus operandi of the KDF investment scheme is that investors were promised a return of around three per cent a month and after 12 months, investors will receive their investment money back and this scheme is organised to finance a kenaf tree planting project in Cuping, Perlis," he said.
According to CCM, preliminary investigations found that the KDF investment scheme was not registered under the Interest Schemes Act 2016 and the chief executive officer of the company who masterminded the scheme was a bankrupt individual.
"As a result of the raid operation, CCM confiscated the company's account records, documents related to the organisation of KDF and the suspect's mobile phone.
"The investigation is conducted under Section 43 of the Companies Act 2016, Section 198 of the Companies Act 2016, Section 213 of the Companies Act 2016 and Section 3 of the Interest Schemes Act 2016," he said.
In the meantime, the statement said CCM that it takes seriously the offence involving investment schemes that collect public deposits without valid approval or license and reminded the public to always be careful in evaluating investment opportunities that promise high returns with low or no risk.
"For any enquiries, people are requested to contact CCM Customer Care at the complaint and feedback section, CCM chatbot, CCM live chat which can be accessed through the official CCM portal, telephone number 03-7721 4000 or email to enquiry@ssm.com.my," he said.- Bernama
