KUALA LUMPUR: Police have arrested 10 individuals suspected of being involved in an investment scam that fraudulently used the name of the well-known firm Warburg Pincus, leading to losses amounting to RM21.9 million.
Bukit Aman Commercial Crime Investigation Department director Datuk Seri Ramli Mohamed Yoosuf said the suspects, comprising five men and five women aged between 21 and 52, were detained during raids conducted on July 30 and 31 in Selangor, Kuala Lumpur, Johor, Perak, Kedah, Sabah, and Sarawak.
He said that the suspects were the owners and directors of the company involved in the investment scam.
“Eight mobile phones, one ATM card and a copy of the company’s registration document were seized during the raids.
“We believe the suspects have been operating entirely online via Facebook and WhatsApp since early this year, using the name of the world’s leading investment company, Warburg Pincus, to deceive victims,” he told a press conference here today.
Ramli said that 44 investigations related to the syndicate have been opened so far and the case was being investigated under Section 420 of the Penal Code.
He said that the syndicate used Facebook’s algorithm system to run investment promotion ads, offering investors returns of up to 11 to 15 per cent per month.
“The syndicate also offered ‘trading coach’ services to guide investors before asking them to download a fake application via a link sent on WhatsApp.
“Victims were then directed to deposit money into a mule account before they could start investing. Ultimately, they were unable to withdraw any of their supposed profits,” he said.
Ramli said that 20 bank accounts, linked to various businesses and companies, have been identified as mule accounts used by the syndicate to collect money from victims.
He said that to date, the investigation has led to the seizure of over RM162,000 from 35 bank accounts under Section 50(1) of the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001.
