Kelantan Ponzi

An actor was among 14 people arrested by police for alleged involvement in an investment fraud syndicate, responsible for “collecting” RM35mil from members to be invested in “property and foreign currencies”.

The 44-year-old celebrity, believed to be the son of an Indonesian comedian who was famous during the late P. Ramlee’s era, was nabbed in Cyberjaya on Wednesday for allegedly protecting two of the syndicate’s masterminds and providing a house for the group to operate.

The rest of the gang members, aged between 28 and 48, were also arrested on Wednesday. A source said seven individuals, including a ‘Datuk Seri’, were arrested in Kelantan; three, including a ‘Datuk’ and the actor, in Selangor; two in Pahang and Malacca; while two others in Penang.

“All of them were caught on the same day (Wednesday) during an operation called Ops Nuri. Investigations revealed that the ‘Datuk Seri’ and ‘Datuk’ were the masterminds,” the source said.

It is believed that the syndicate managed to recruit 500,000 members comprising mostly teachers and fellow artistes. It is learnt that the company was formed by a 48-year-old “Datuk Seri” in February last year with its management office in Tanah Merah, Kelantan.

It is also learnt that the company, with the initials HG, was established to “assist” those who had failed in business to earn passive income by investing their money in a fund.

The source added that the fund would then be invested in properties and foreign currencies with profits dispensed to the members according to the amount they had “invested.”

“Members were told that they could earn up to 200% of profit after only four months of investing,” the source said. Police seized nine luxury cars and jewelleries worth almost RM1mil. “Fourteen investigation papers were opened to probe losses amounting to RM10.5mil linked to the syndicate.