Get-Rich-Quick Scheme

Gullible and greedy investors out to make a fast fortune by putting their hard earned money in get-rich-quick investment schemes had lost more than $ 300 million since 2014. The lure was often a well-known pyramid or that strategy similar to the infamous Ponzi scheme that claims to disburse abnormally high returns.

Police said some investors had promised investment scams over 3,000% profits per year for every share as low as RM300 which they acquire. Federal police commercial crimes investigations department (CCID) director Commissioner Datuk Mortadza Nazarene said between January and June, Malaysians lost almost RM120 million in such investments. He said 289 cases were reported in 2014 while in 2015 police received 591 cases. He said in just six months this year, 485 cases were reported.

Such cases keep occuring as investors are drawn to the returns which are way much higher than the sum invested. We the police are constantly carrying out surveillance and operations on these schemes but it just does not seem to have an impact in eradicating these activities which affects the multi-races here. 

The latest case crippled by the CCID last week was another get-rich-quick company called the Highway Group that allegedly saw hundreds of thousand investors including VVIPs, artistes and teachers jumping onto the bandwagon after being offered over 3,000% in returns.

In February, police began a probe on the Kelantan-based company that claimed to have over 500,000 investors after a 54-year-old man who parted with RM132,000 in 17 transactions lodged a police report claiming he was cheated. Subsequently, police received 175 reports involving more than RM10 million invested by the Complainants.

A 48-year-old Datuk Seri, said to be a former teacher and a 43-year-old Datuk who ran the company were among 14 people arrested last week for investigations. Police also held a male artiste who allegedly promoted the scheme. Mortadza said checks showed that the Datukship titles held by the suspects were not bestowed by a recognized royal palace here. He said most of the investors were teachers and there were also foreign investors from Brunei.

Sources said it was possible the scheme had reaped about $ 100 million in the two years it was active but there was a slim chance of recovering their money investors recently after it went bust. It is learned that investigators are aware of several VVIPs who were investors of the scheme but due to embarrassment, none have come forward to lodge reports.Police also learned that the detained founder of the company led a life of luxury and had hired a private helicopter to return to his hometown in Kelantan during Hari Raya.