KUCHING: A family’s bid to multiply their savings through what they believed was an international investment opportunity in China has turned into a devastating loss of RM750,000 after falling prey to a fraudulent pyramid scheme.
The family, from Kuching, invested in a so-called “multi-level marketing” (MLM) venture in Fang Cheng Gang, a city in the Guangxi Province, after being enticed by promises of returns amounting to RM25 million (RMB39 million) each upon investing RM150,000 (RMB233,831).
Sarawak United People’s Party (SUPP) Public Complaints Bureau Chief, Milton Foo, said the victim, a 32-year-old businessman, and four of his family members were lured into the scheme in 2019 by two individuals believed to be Sarawakians.
“The family were invited to China to attend what was presented as an investment briefing in the property and tourism sectors.
“Following the trip, the family of five invested a total of RM750,000. Each contributed RM150,000 to the scheme, hoping to receive the promised RM25 million each in return,” he said in a press conference at the SUPP Headquarters here today.
Milton said the payments were made through multiple bank accounts under both company and individual names in China, with transactions carried out via bank counters and credit card terminals.
“The scheme also required participants to recruit two new investors each, who would in turn bring in two more,” he said.
Milton further said as part of the investment scheme, participants were also asked to open bank accounts, register local phone lines, and obtain business licences in China, supposedly as part of company establishment procedures.
“The family later realised they had been deceived when there were no returns, and a police report was finally lodged in August last year,” he said.
He added that two suspects – one in Miri and another in Kuching – were later arrested but released after being remanded for a short period.
“Individuals, corporations or companies – whoever promises you 10- or 100-times profit – it’s all an inducement.
“Therefore, I would like to once again urge the public to remain alert and be extra careful, especially when you invest in schemes both within and outside Malaysia. This is because there is no such thing as a fast or a sharp return,” he pointed out.
Milton also expressed concern that more Sarawakians could have fallen victim to similar scams linked to the same syndicate and called on the police to conduct a thorough investigation.
The victim, who was present at the press conference, said the RM750,000 invested was his family’s life savings – money raised from selling their business.
“We are still expecting for some recovery, and we hope the authorities can look deeper into cases like ours,” he said.
