POLICE have crippled an online gambling syndicate targeting South Koreans and involving bets totalling RM87 million, following raids on two bungalows in Iskandar Puteri two days ago.

Johor police chief Ayob Khan Mydin Pithcay said nine South Korean men and a local man, aged between 29 and 66, were arrested in the raids at 5pm on June 5.

He said the foreigners were believed to be working as “customer service” staff who took care of the online gambling operations and worked in two shifts a day, while the local man acted as a runner and looked after the welfare of the staff, including providing food and shelter.

According to Ayob, the syndicate, which has been operating for the past two years, made Malaysia its centre of operations, and targeted customers from South Korea using eight online gambling platforms.

“Preliminary investigations found that the syndicate was cheating about 1,500 victims a month involving total daily bet values of at least RM1 million,” he said at a press conference in Johor Baru today.

“If we look at the data we have recorded from a laptop that was confiscated, so far, the total bet value involves RM87 million. All financial transactions are directly deposited in a central bank account in South Korea.”

Ayob Khan said this is the first time South Koreans were arrested in connection to gambling activities in Johor, and the investigations found that two of the suspects entered Malaysia in December 2019 and the rest, in February last year.

He said among the factors believed to have led the syndicate to operate from Malaysia were the low operating costs, good internet network and security control, while they changed locations every three to six months to avoid being detected by the authorities.

Also seized in the raids were six computers, four laptops, 13 mobile phones, eight automated teller machine cards and four iPads as well as RM36,168 and 7,779 South Korean won (RM29).

The local man, who has a criminal record under section 39(A)(1) of the Dangerous Drugs Act 1952, was remanded for three days from yesterday while the South Koreans were remanded for 14 days.

On the Nicky Gang case, Ayob Khan said police were waiting for several bank reports, including from Bank Negara Malaysia, with regard to investigations into the organised crime group.

“This case is huge and the transactions involved a lot of personal accounts, companies and so on, so it will take some time,” he said.

When asked if the police have obtained any leads on the gang leader’s whereabouts from Interpol, Ayob Khan said no new information has been received so far.

On April 20, Interpol reportedly issued a red notice on businessman Nicky Liow Soon Hee, believed to be the mastermind of the Nicky Gang syndicate, and a day later, another was issued on his aide, Niu Zhe, 31, who is a Chinese national. – Bernama, June 7, 2021.