Four who swindled RM55m in non-existant scheme nabbed

Feb 11, 2017

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The police have uncovered a ring of confidence tricksters and detained four individuals, including one with the honorific status ‘Datuk Wira’, for allegedly operating a non-existent army uniform tender investment scheme which fleeced RM55 million from victims.

The ring was allegedly masterminded by a married woman, initial police investigations have revealed.

Selangor Commercial CID deputy chief, Supt Mazelan Paijan said the suspects, including the 30-year-old woman and her husband, were picked up between Monday and Thursday.

He said the couple was nabbed in Bukit Jelutong on Monday, while the 47-year-old ‘Datuk Wira’ and a 30-year-old woman were picked up in Puchong and Kajang on Wednesday and Thursday, respectively.

The ‘Datuk Wira’ and the woman were believed to be ‘senior figures’ in the cheating scheme.

According to Mazelan, the scam which began in August 2015, fronted as a cosmetics and ‘jamu’ business company in Taman Melawati near here, after it was registered by the alleged mastermind.

“The arrests followed a police report by an agent in Kajang who had collected money from 40 victims for the investment in the tender scheme.

“The agent became suspicious when he was not given the profits as promised, from the RM1.7 million which he had collected and handed over to the ring of confidence tricksters.

“Upon checking with the ministry (defence ministry) concerned, it was found that no such tender was issued,” he told reporters today.

Mazelan said the suspects were believed to have swindled more than 1,000 individuals at rural areas in the East Coast and Selangor.

“Based on records seized from one of the suspects, total losses incurred by the victims could amount to about RM55 million, but we think many have yet to lodge police reports,” he added.

He said the ring’s modus operandi was to gain the confidence of victims that a company was facing financial constraints to proceed with a tender and offer profits of between 30 to 50 per cent to interested investors.

Mazelan said a BMW 3 Series and a Mercedes Benz E250 were seized, together with various business documents, cheque books, bank cards, laptops, mobile phones as well as bank transaction receipts from the suspects.

The four suspects have been remanded until Monday to facilitate investigations under Section 420 of the Penal Code for cheating. –Bernama