KUALA LUMPUR: Eight individuals, including four believed to hold the title “Datuk”, have been arrested for alleged involvement in a Ponzi investment scheme known as “Pelaburan MBI”, which was reportedly operating out of a neighbouring country.
Police also seized and froze assets linked to the scheme, worth over RM3.17 billion.
Inspector-General of Police Tan Sri Razarudin Husain said in a statement yesterday the arrests and asset seizures were made during a series of coordinated raids last month under an operation codenamed Op Northern Star, following a Red Notice alert issued by Interpol.
“The suspects, all Malaysians aged between 44 and 62, were detained on March 20 in an integrated effort by
the Anti-Money Laundering Criminal Investigation team from Bukit Aman,” he said.
“The operation was launched based on intelligence and information received through the Interpol Red Notice, which identified individuals suspected of international financial crimes.
“All properties and assets seized are believed to be proceeds from unlawful activities linked to the fraudulent investment scheme.”
According to Razarudin, the Bukit Aman team carried out raids that resulted in the freezing and confiscation of assets under Sections 44(1) and 45(2) of the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001.
Among the seized items were
638 bank and stock trading accounts involving RM1.16 billion, 35 properties estimated to be worth RM2 billion, 10 luxury vehicles, 12 high-end wristwatches, large amounts of foreign and local currencies, along with assorted jewellery, luxury handbags, mobile phones, laptops and key documents.
Several documents believed to be directly linked to the scam were also confiscated.
Razarudin stressed that police will continue to pursue all individuals and organisations suspected of laundering or possessing criminal proceeds from the scheme.
“We are committed to ensuring that no one escapes accountability. We will act decisively against anyone found to be benefitting from or abetting such fraudulent activities,”
he said.
A Ponzi scheme is a type of investment scam in which earlier investors are paid with funds collected from newer investors to create the illusion of high returns.
To attract more participants, such schemes typically promise substantial profits with minimal risk.
It is understood that the MBI scheme has been operating for several years and is believed to have defrauded thousands of investors with promises of high payouts.
