Scam Ponzi Greed Con

Despite losing millions, investors are refusing to spill the beans on money game operators, who continue to operate without fear of the authorities.

There are no statistics of how many people have lost how much through these money games in Malaysia, but it is believed to be nationwide problem.

Former Selangor assemblyman Ronnie Liu told The Malaysian Insight the majority of victims remained silent as they believed powerful people were behind these games, and they are worried of reprisals if they lodged police reports.

"Victims think money games are controlled by powerful people, they could be triad members, or those who have considerable influence in the government, or maybe they are even friends with the police.

"They are afraid that if they lodge reports they will not get their investments back," Liu said.

He said some victims went through the trouble of lodging reports, but then withdrew the complaint when they were paid off.

"More often than not, the victims agreed to withdraw their reports as they would get their money back.

"These cases should not be resolved this way, but we don't have the authority to stop them."

Money game schemes are most actively run in Penang, followed by Selangor and Johor. 

Money games are well-packaged scams, using keywords like “success”, “future” and “hope” as keywords to get attention.

The companies are not only fraudulent, they are also involved in illegal fund raising, pyramid schemes, multi-level marketing, illegal foreign exchange trade, virtual currencies and other illegal activities.

The Commercial Crimes Department in a report in December said the department is investigating 43 money game operators and investment companies, with up to 1.3 million people estimated to be cheated of RM5.8 billion.

It was also reported that police had taken action against 13 money game syndicates, which had swindled more than 330,000 people of about RM2 billion.

Police took action against syndicates like MGSB, Roopers Burger, Triggerfx, Pelaburan Feenra Gold and Resources, Pelaburan Saham Myzia Coin and Pelaburan AGR Holdings.

The most prominent money game operator, Johnson Lee Chong Sen, the founder of forex trading entity JJ Poor to Rich (JJPTR), was charged with fraud at the Kuala Lumpur High Court last year.

Johnson and his two senior partners – Pang Chee Peng and Lim Seong Weil – were charged with cheating.

Liu said he suspected that Lee has connections with enforcement authorities, which would explain the light charge.

He used another money game company, Monspace as an example, where the authorities were reluctant to investigate. But Monspace currently is on Bank Negara Malaysia's financial consumer alert.

"We have brought many complainants to lodge police reports, and the police said they have received at least 80 reports against Monspace.

"But the police said the complainants are Chinese nationals and the transactions are done in China, therefore Malaysian authorities have no jurisdiction over the case. We have already taken the complainants to China to lodge reports there.

"The question is, the alleged cheater is Malaysian, why can't the authorities investigate?" he asked.

Segambut MP Lim Lip Eng, who is also a lawyer, said authorities can invoke banking and financial laws, company laws, tax laws, direct-selling laws, money laundering laws and spreading false information on the internet and etc, but they are only using the lightest possible law against the alleged cheaters.

"Under Section 420, if the accused does not have a criminal record, they can plead guilty. And with a good lawyer arguing the case, they can even reduce the sentence down to a mere fine, they do not even need to go to jail.”

Due to the high burden of proof, authorities have to investigate thoroughly to ensure a conviction, thus the need for victims to lodge reports.

A cosmetics promoter who once promoted several money game companies told The Malaysian Insight the games flourished as the investors fell for the charm of easy money.

"When one of these companies folded, an auntie who once saw me promoting money games thought I was one of those who ran the games.

"She knelt down and grabbed my legs, asking me to return her coffin money. She said I shouldn't cheat old people off their money like this, she even cursed me to die a horrible death.

"I told her I'm not one of the bosses, and that they have already ran away. She almost fainted when she heard that. That gave me shivers. It also woke me up and I decided to leave the money game business," said the cosmetics promoter who did not want to be named.