Stock investment scam syndicate toppled, 12 Chinese nationals nabbed

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Bukit Aman Deputy Director (Intelligence / Operation) of the Commercial Criminal Investigation Department SAC Willey Richard shows the items seized after an online stock investment scam syndicate belonging to Chinese nationals is toppled. PIX: MOHD ADZLAN / MalaysiaGazette /26 OCTOBER 2020.
Bukit Aman Deputy Director (Intelligence / Operation) of the Commercial Criminal Investigation Department SAC Willey Richard shows the items seized after an online stock investment scam syndicate belonging to Chinese nationals is toppled.PIX: MOHD ADZLAN / MalaysiaGazette /26 OCTOBER 2020.

By Kumara Sabapatty

KUALA LUMPUR – China

All suspects from China aged between 23 and 37 including two women aged were arrested by the Bukit Aman Commercial Criminal Investigation Department (CCID) in a raid at the Klang Valley on 23 October.

The Director of CCID, Commissioner Datuk Zainuddin Yaakob said that the investigation found that all suspects entered Malaysia last year using social visit pass and the online investment scam was carried out in the country since September last year.

“Their tactic is to move frequently and they make luxury condominium and luxury hotels around the Klang Valley as the centre to conduct their illegal activity.

“Their call centre which operated here was used to trick victims from China using WeChat without the need to a face-to-face meeting.

“Among the activities of this syndicate was promoting and influencing investors about the Chinese stock market which has the potential of bringing them profit through a transcript prepared by the syndicate chief in China. Each investor also needs to download an investment application recommended by the syndicate.

“Actually, they were only working and they don’t know about the stock market being traded by their chief. They were taught to create a groups using WeChat that shows the current share market in China.

“When the client has been successfully fooled and coaxed into investing their money in a non-existing product (Chinese share market), their duty will end and the transactions and money invested will be managed by the syndicate based in China in virtual using WeChat Pay or Alipay,” he said in a statement today.

According to Zainuddin, most of the syndicate members were given training to influence victims and convince them into making big scale investments.

He said, 40 percent of the profit from the client’s investment will be deposited into the funds account end of the year to the syndicate members operating in the Klang Valley.

“This enables the syndicate chief of the non-existing stock investment scam to pay high monthly salaries of RM2,5000 to RM4,000 to its syndicate members and pay monthly luxury hotel and condominium rental between RM9,000 and RM13,000 per month, providing logistics needs including the premise rental to host their operations here.

“At this moment, there is no report implicating this syndicate with local citizens here. However, the management of the syndicate here is under the control of a local Chinese man who is being traced by the police,” he said.

Meanwhile, Zainuddin also said that from the 12 suspects arrested, nine did not have valid travel documentation where they have expired. Meanwhile, three others own valid travel documents.

“Based on the search at the premises of all suspects, the police have seized gadgets such as seven laptops, 125 mobile phones, one ipad, four bags, two watches, two ring, one bracelet, one necklace, RM27,222 in cash, HKD1,000, RMB535 and Macau Pataca 1,000,” he said.

According to him, all suspects were arrested under Section 420 of the Penal Code which provides the maximum imprisonment of 10 years, whipping and fine upon conviction.

They are also being investigated under Section 6(1) of the Immigration Act 1959/1963 which provides the maximum jail-term of five years or the maximum of RM10,000 fine and the maximum of six whips upon conviction.

All suspects are also investigated under Section 15(1) of the Immigration Act 1959/1963 which provides the maximum imprisonment of five years or the a fine not exceeding RM10,000 or both. They are also investigated under Rule 39(b) of the Immigration Regulations 1963 which carries the maximum imprisonment of six months or a fine not exceeding RM1,000 or both. –MalaysiaGazette

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