JUST last month, the investor clients of unlicensed forex trading company, JJPTR were complaining that their returns for the month had not been banked in as usual. 

Johnson Lee, the 28-year-old founder of the company, had stepped up then with the admission that the company’s trading accounts had been hacked by unknown parties which had resulted in losses of more than US$400 million (RM1.75 billion).

Though he had seemingly vanished, Lee regularly kept in touch with the investors, if only through Facebook, to convince them he had not run away and had every intention of giving them their money back.

He did not say how he would raise the billions of ringgit needed to reimburse them but promised the investor a new plan was in the works.

On May 1, the enterprising Lee come through on his promise. An investment plan with the promise of handsome returns was unveiled via a video uploaded on  the JJPTR Facebook page. 

From forex to e-trading

Under the new plan, members will be trading in electronic shares instead of foreign currencies. Again, all they have to do is give JJPTR  money to invest and they will receive a high and fixed monthly return.

E-shares, or e-trading, has grown popular with investors in recent years. Many companies have entered the fray, and JJPTR is the newest kid on the big playground.

An employee at the JJPTR head office on Jalan Perak in George Town said the new plan offered investors a 45% return each round, or each time their investment “split”, a process that took 10 days.

“There are only three splits. Say, you invest US$1,000. You will get US$450 (RM1,947) per split up to three times. 

“The money is banked into your account. After the last split, you can take your money and stop, or you reinvest for another go,” he told The Malaysian Insight. 

The minimum investment was US$100 and the maximum, US$50,000, he said, adding that the money would be invested in various businesses. 

“I think it will be very appealing to the rich who have deep pockets,” the employee said. 

In this new plan, up-lines receive a 5% commission for bringing in new investors and JJ points are also awarded to investors as a bonus.

“It is like the MBI platform, but just less complicated,” the employee said, referring to another platform that has offered e-trading services for several years.

Unlike MBI, JJPTR’s new plan does not involve buying or selling shares, and JJ points may be converted into cash instead of merely to shop at partnering business outlets.

The employee said the investors could also invest JJ points in businesses affiliated or partnering with JJPTR such as mini marts, cafes, a local film producing company and others. 

“Depending on how well the selected businesses do, the investors will get a part of the profit pool based on the value of the points invested. 

“After the businesses make a profit, investors can convert their points into cash,” he said. 

The employee said the new plan has not yet been launched as the system was not ready, but the boss was trying to get it up and running before the end of the month.

“He also wants to start soon. The sooner the new plan takes off, the sooner the members who invested in the old forex plan can be reimbursed.”

Until then, the staff will explain the new plan to members and the company would brief its introducer brokers (IBs) to help the investors understand the new plan.

“Just earlier this week, we had a seminar in Ipoh for up-lines,” he said.

To invest or not to invest

JJPTR members are likely split into those who will take the plunge with Lee again and those who are more cautious now, after the alleged hacking episode. 

An investor in his 50s, who declined to be named, said he had heard about the new plan but did not understand it very well.

The old forex investment plan that started in 2015 was more straightforward. JJPTR members invested as little as US$25 up to a maximum US$1,000 for a guaranteed 20% monthly return.

The man, who had lost money due to the alleged hack, said he would have to think carefully whether he wanted to invest in the new plan. 

“I am unsure after what has happened. I don’t want trouble or hassle. So I’ll think about it first,” he said.

Another investor, Goh, in his early 30s, said he found the new plan interesting, and being an MBI investor, he agreed that JJPTR’s format was simpler.

“If he can make it happen, I am open to investing but maybe just a little. Not a big amount like US$1,000 yet,” he said

Lee still has many who believe in and support him, as indicated on Facebook; but he also has many detractors. Some appear to be waiting to see him get into trouble or abscond, to judge by the nasty remarks posted also on social media. 

Just last weekend, there was news alleging that Lee had received a sum of money by cheque and was “preparing to run off”.  Lee has  denied the allegation, via a video on Sunday that showed he was in Penang.

Another JJPTR staff said the cheque was fake and the allegation was to slander Lee. 

“The media should have checked before reporting the false claims,” he told The Malaysian Insight. 

“The company may be forced to do something about the false accusations if they don’t stop,” he added. 

Police are also probing Lee after a report was lodged against him Johor. – May 5, 2017.