Ponzi

PONZI SCHEME SUSPECTS NABBED

Jan 2018

Six suspects including a Datuk Seri and four others with Datukship titles were remanded yesterday in connection with running a “money game” or Ponzi scheme called the Royal Gold.

It is learnt that the suspects who are aged between 40 and 60 were held on Friday in the Klang Valley, Johor Baru and Sarawak in simultaneous raids by the federal commercial crimes investigations department (CCID) for investigations into almost 200 police reports lodged last year by their investors who lost RM28 million in the scheme.

Sources say it is estimated that the schemers had amassed over RM400 million from thousands of investors.

Police believe they have all the main suspects in custody and are taking steps to seize and freeze their bank accounts and assets, which include luxury cars and plush real estate.

It is also learnt that police have allowed bail for the Datuk Seri due to a kidney ailment that requires him to undergo dialysis five times a week. The suspect is expected to report for investigators daily.

When contacted by theSun yesterday, federal CCID director Commissioner Datuk Seri Amar Singh confirmed the arrests but declined to reveal details.

The operators of the money game had lured investors from 2014 by claiming that their two companies had a member of royalty as director.

Claiming to invest in gold, they offered investors 15% in returns per month.

While there were those who received lucrative returns but still lost out as it did not cover their capital, thousands of others were not paid a single sen.

The losses of each investor amounted from several thousand ringgit to over RM350,000.

In July, six months after 338 victims filed a civil suit against the company, the High Court ordered Royal Gold Sdn Bhd to return RM35 million and 99kg of gold to the plaintiffs.

The judgment was issued in default after the company’s representatives failed to appear in court.

InvestSmart