KUCHING: A young businessman from Sarikei is still hoping to recover nearly RM2 million he lost after falling victim to an alleged fake investment scheme involving the international trade of refined white sugar.
The 30-year-old businessman was promised a return of USD3.75 million (RM15.9 million) within a year but has yet to receive any payment.
The sugar was said to be sourced from Brazil and destined for China and Indonesia.
The businessman was introduced to the investment opportunity by a friend, who had in turn learned about it from another acquaintance.
In August last year, he travelled to Kuala Lumpur (KL) to meet the person involved in the investment and review the documents related to the sugar trade.
After going through the plans and paperwork, the businessman returned to Sarikei, registered a company, and decided to proceed with the investment.
Sarawak United People’s Party (SUPP) Public Complaints Bureau Chief, Milton Foo, who was alerted to the case, said the businessman registered a company comprising himself, a friend from Kuching, and the wife of the director of the Singapore-based company, before signing the agreement with the Singapore-based company.
“Two transactions were made: USD345,000 on August 30, 2024, and USD105,000 on September 4, 2024. The total amounted invested was to cover six shipments, each carrying 12,500 tonnes of sugar, totalling 75,000 tonnes of refined white sugar.
“In return, they were promised a profit of USD50 per tonne, or expecting a return of about USD3.75 million in full return within a period of 12 months,” he said in a press conference at the SUPP Headquarters here on Saturday.
According to Milton, in June this year, the businessman decided not to continue with the investment and requested a refund after receiving no returns.
“They agreed to refund the money to the businessman but kept on delaying on the payment and provided all kinds of excuses,” he said.
Upon reviewing the agreement, Milton believed it was a simple supply and purchase contract for refined white sugar.
“There was no mention of profits, returns, or any return on investment (ROI) as promised. The so-called profit arrangement was purely verbal and not reflected in the agreement.
“Therefore, the relationship between this young man’s company and the Singapore company was merely that of a buyer and a supplier, nothing more than that,” he said.
He added that on October 9, the businessman lodged a police report at the Dang Wangi Police Station in KL against an individual residing there, who is one of the directors and shareholders of the Singapore-based company.
A second report was filed the following day in Singapore, where the company is based.
“Investigations are ongoing, with police from Sarikei having also contacted the businessman to provide his statement, but no arrests have been made so far,” he said.
Describing the case as high-risk, Milton said investigation would determine whether there were elements of criminal breach of trust or other offences.
“I therefore urge the authorities to take this case seriously because the amount involved is a huge sum of money,” he said.
He also advised the public to exercise extreme caution when dealing with large financial investments.
“Although the deal appeared legitimate, but profit agreement was never recorded in the agreement. And since the goods were never delivered, the victim may also pursue a civil suit to terminate the contract and claim a refund,” he said.
Milton further reminded the public to always seek professional advice from accountants or lawyers before committing their hard-earned money to any investment or signing any agreement, especially with unfamiliar parties.
