THE Domestic Trade, Cooperatives and Consumerism Ministry has detained the founder of alleged money scheme MBI International Group. 

Ministry enforcement chief Mohd Roslan Mahayudin said the man, whom he declined to name, was arrested on yesterday at the company’s Taman MBI Desaku premises in Kulim, Kedah. 

“He is in his early 50s. Whether we charge him or we let him go, we will decide accordingly based on our investigations,” he told a press conference at the Bank Negara Penang office this afternoon.

The founder has been remanded for four days for investigation under the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act (AMLATFPUAA).

He was arrested at a luxury residence in Taman MBI Desaku during a police raid of three MBI premises in Penang and Kedah.

Roslan said in the operation dubbed “Ops Token II” at 6.30am yesterday, the ministry’s enforcement special action force, National Revenue Recovery Enforcement Team, Bank Negara Malaysia and Bukit Aman police officers raided a house in Sungai Dua, Butterworth in Penang, and two houses in Taman MBI Desaku in Kulim.

They seized RM280,000 from the house in Butterworth, and RM182,612 in local currency and RM218,000 in Singaporean, Taiwanese, US, Australian, Thai, Indonesian, New Zealand, South Korean, Hong Kong, Japanese, Lao and Cambodian currencies from a house in Desaku.

They also confiscated a RM350,000 Jaguar, RM900,000 Range Rover and RM300,000 Vellfire.

Roslan said the raids were a follow-up to the enforcement action taken against the Mface Club scheme in Klang and Penang on May 29.

Following raids at the MBI head office in Ampang and MBI’s shopping complex, M Mall in Penang, the authorities froze 91 bank accounts with RM177 million under the Anti-Money Laundering Act 2001. Other items seized in the raids include gold bars, watches, jewellery, handbags and USB drives. 

Roslan said authorities have frozen four more accounts with RM30 million belonging to a company newly set up by a relative of the Mface Club suspect. 

“The total amount of assets and money seized in this latest raid is over RM32.2 million. 

“To date, of all the 49 company accounts, including those belonging to MBI subsidiary companies; and 49 accounts belonging to individuals related to MBI, such as those who organise the scheme, we have frozen RM209 million. 

“If found guilty under AMLATFPUAA, those responsible can be jailed up to 15 years, fined five times the amount involved in the illegal activities or RM5 million, whichever is higher,” he said.

Roslan said the authorities had spend about a month probing and collecting information on MBI.

He said the probe was following media reports on MBI’s scheme, which was an unlicensed financial scheme offered to the public without authorisation from the central bank.

“We are still investigating the company, and its activities according to the legal provisions available to us. Other agencies looking into this case may use other laws.

“Our probe also extends to all subsidiaries under the MBI group,” he said.

Asked if M Mall, a subsidiary of MBI, would be allowed to continue operations, Roslan said it was “no problem” for the mall to do business as usual pending completion of the probe,

“It (the fate of the mall) will be decided later,” he said, adding that the authorities could freeze accounts up to 90 days and had up to 12 months to wrap up investigations.

He also said the authorities would also work with foreign authorities in the probe if necessary, when asked about the involvement of investors from overseas, particularly China.

He added that to date, nobody had lodged any reports against the company.

He also advised the people to be careful of such schemes, and to check with relevant authorities such as the central bank and the ministry before investing. 

MBI, a large electronic shares platform operator, is being investigated by various authorities for allegedly operating without a direct sales licence, promoting a pyramid scheme, and money-laundering.

The group of 27 companies, which include a development firm, have some 4.5 million members across the Far East, especially Malaysia and China. 

MBI was founded by Tedy Teow Wooi Huat in 2009, according to the company website.

He and his son Chee Chow, 28, were jailed for a day and fined RM160,000 for cheating and misleading over 90 investors of more than RM1 million in an investment scheme under the Island Red Cafe franchise from 2008 to 2010. 

MBI’s troubles began last month when authorities zeroed in on money game platforms operating and offering financial services without the authorisation of the central bank. 

After forex trading scheme operator JJPTR alleged that a hacking job in April had cost it to lose over RM1.7 billion in its accounts, its founder Johnson Lee and his two aides were detained by the police for investigation on May 12 and were remanded until May 23. 

MBI members have largely remained confident that the company would not collapse, given its size and good business. – June 20, 2017.