Investment scam syndicate busted, 12 Chinese nationals detained

KUALA LUMPUR: Twelve Chinese nationals including two women were arrested in a police raid on a hotel, here last Friday for suspected involvement in a non-existent online stock investment scheme targeting investors from China.

Bukit Aman Commercial Crime Investigation Department (CCID) director, Datuk Zainuddin Yaacob said those detained comprised 10 men and two women, aged between 23 and 37, with nine of them not having valid travel documents.

He said the investigation found that the scam syndicate had been operating since last year and regularly moved by turning luxury condominium units and hotels around Klang Valley as centres for their activities.

"They promoted (the investment scheme) and influenced investors by using scripts given by the syndicate's mastermind through the WeChat application where the syndicate could show the current stock market situations.

"So far, there have been no reports linking the syndicate to locals and it used the WeChat Pay and Alipay functions to do contactless transactions with customers in China,” he said at a press conference, here, today.

He added that the syndicate was able to pay salaries of RM2,500 to RM4,000 monthly to its members and was also able to rent luxury condominium units and hotels at RM9,000 to RM13,000 a month.

All the suspects are remanded since Saturday until tomorrow, while police are also tracking down a local man, believed to be protecting the syndicate.

During the raid, police also seized seven laptops, 125 mobile phones and Malaysian, China, Hong Kong and Macau currencies amounting to RM28,144.

The case is being investigated under Section 420 of the Penal Code, Section 6 (1) and Section 15 (1) of the Immigration Act 1958/63 and Rule 39(b) of the Immigration Regulations 1963.

Zainuddin said a total of 617 individuals were arrested in 60 raids throughout the country between early January and Oct 23 in connection with criminal activities using call centres.

-- BERNAMA