10 arrested, 'Warburg Pincus' investment syndicate busted
Astro Awani
13/08/2024
Director of Commercial Crime Investigation Department (JSJK) Bukit Aman Datuk Seri Ramli Mohamed Yoosuf during a special press conference of JSJK Director at Menara KPJ, today. - BERNAMA photo
KUALA LUMPUR: Police busted an investment fraud syndicate worth more than RM21 million, which operated on social media using the name of an international investment company, Warburg Pincus, with the arrest of 10 individuals.
AI Summary
Police busted an investment fraud syndicate worth more than RM21 million using the name of international company Warburg Pincus and arrested 10 individuals.
Syndicates use Facebook and WhatsApp to attract investors with promises of high returns, but victims are unable to withdraw their profits.
A total of 35 bank accounts were seized with a total value of RM162,598.53, and the case is being investigated under Section 420 of the Penal Code.
Director of the Bukit Aman Criminal and Commercial Investigation Department (JSJK), Datuk Seri Ramli Mohamed Yoosuf said the suspect, aged 21 to 52, was arrested in several raids in Selangor, Kuala Lumpur, Johor, Perak, Kedah, Sabah and Sarawak on the 30 and last July 31.
"Investigation found that they (suspects) are believed to be acting as company owners as well as business and company directors to make the activities successful.
"This syndicate uses the name of the world's leading investment company, which is Warburg Pincus, to convince the victims that the investments carried out are legitimate and uses Facebook and WhatsApp to communicate with the victims," he said in a press conference here, on Tuesday.
Ramli informed that the police also opened 44 investigation papers involving the investment.
He said the police also seized eight mobile phones, an ATM card and a copy of the company's registration document.
"Investment promotion ads are made by applying the FB algorithm system to guarantee optimal results.
"Returns as high as 11 to 15 percent per month are offered to investors to attract their attention," he said.
He said, syndicates were also found to offer 'trading teachers' services to guide investors to generate maximum income.
"To participate in the investment, the victim is asked to download a fake application sent via a WhatsApp link and the victim will be instructed to deposit money into a donkey account in the name of the company and business before being able to start investing.
"However, the victim was unable to make any profit withdrawals," he said.
"A total of 20 bank accounts belonging to various businesses and companies were identified as misused as donkey accounts to receive money from the victims involved.
"The case is being investigated according to Section 420 of the Penal Code. To date, the investigation has successfully made a seizure under Section 50(1) AMLATFPUAA 2001 against 35 bank accounts with a total value of RM162,598.53," he explained.
He once again reminded the public not to be influenced by any investment offer on social media platforms.
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