KUALA LUMPUR: A businessman pleaded not guilty in the Sessions Court here today to 10 charges of conducting unlicensed capital market activities and committing fraud involving an RM3.16 million bond investment scheme five years ago.
For the first charge, Razrul Anwar Rusli, 45, was accused of engaging in a regulated activity involving the trading of securities despite not being a licensed capital market services provider and not being registered to conduct securities trading.
The former Johor Bahru Bersatu deputy chief was alleged to have committed the offence at a house in Petaling Jaya between April 2019 and April 2021, under Subsection 58(1) of the Capital Markets and Services Act 2007 (Act 671), punishable under Subsection 58(4) of the same Act, which carries a maximum jail term of 10 years, a fine of RM10 million, or both, upon conviction.
He also faces eight charges of cheating five individuals by making representations concerning a syariah-compliant bond investment scheme known as ‘Amal Trust’, which led the victims to transfer a total of RM3.16 million to him for the investment, when the representations were allegedly false.
These offences were purportedly committed at four separate locations: Yayasan Selangor Building, Jalan Raja Muda Abd Aziz, Bandar Puchong Jaya and Pandan Indah near here, and Jalan Jelutong, Penang between January 2020 and April 2021, under Subsection 179(b) of the same Act, punishable under Section 182, which carries a maximum penalty of 10 years in prison and a RM1 million fine, upon conviction.
Razrul Anwar, who is neither a licensed capital market services provider nor a representative, was also charged with displaying a claim of compliance with securities laws on the “AMAL TRUST” website, creating the impression that he was licensed to conduct regulated activities involving the trading of securities as stated in Schedule 2 of the Capital Markets and Services Act 2007.
He was accused of committing the offence in Petaling Jaya between April 2019 and April 2021 under Subsection 362(3) of the same Act, punishable under Subsection 372(1), which provides for a fine of up to RM1 million or imprisonment for not more than five years, or both, upon conviction.
Deputy Public Prosecutor Hashley Tajudin from the Securities Commission (SC) said the offence was non-bailable due to its seriousness.
“However, if the court is inclined to allow bail, the prosecution proposes bail of RM1 million with two Malaysian sureties for all the charges, given the large sum involved, which is over RM3 million, along with additional conditions that the accused surrender his passport to the court and report to the SC office once a month,” he said.
Defence counsel Mohd Syamril Afzan Mohd Hasim pleaded for a lower bail of about RM50,000, arguing that his client was bankrupt and caring for his ailing mother.
“My client only runs a small business and has no fixed income. He cannot afford a high bail,” he added.
Judge Zulqarnain Hassan allowed bail at RM500,000 with two Malaysian sureties for all the charges, along with the prosecution’s proposed additional conditions, and fixed June 17 for mention.
