More Than 10 Investors Lose Over RM940,000 in Alleged High Return Trust Fund Scheme

More than 10 investors from the Parit Buntar and Nibong Tebal areas have come forward claiming they lost a combined RM948,550 after investing in a trust fund scheme that allegedly promised attractive returns but later failed to return both profits and capital.

The investors, aged between 44 and 70, alleged that they were persuaded by agents to participate in what was promoted as a high return trust fund investment programme between 2022 and 2023. They now believe the scheme may have been an investment scam after repeated attempts to recover their funds proved unsuccessful.

The victims shared their experiences at a press conference held today, accompanied by Bagan Dalam State Assemblyman Satees Muniandy and lawyer Foo Seong Xiang.

According to the investors, concerns first emerged when they attempted to terminate their investment contracts or withdraw their funds after the agreements had matured. Despite their requests, they were unable to recover either their original capital or the promised returns.

Several victims also claimed that agents discouraged them from lodging police reports, warning that doing so would make it even more difficult to recover their money. Instead, they were allegedly asked to sign repayment agreements under which the company would reimburse investors over a period of 30 years.

Under the proposed arrangement, investors would receive annual repayments amounting to only about one percent of their principal investment each year, a condition many described as unreasonable and unacceptable.

Some investors reported receiving substantial returns during the early stages of their participation, which helped build confidence in the scheme. However, those payments eventually stopped, and efforts to retrieve their principal investments have since failed.

Investor Unable to Recover Funds After Contract Maturity

One of the victims, 44 year old Chow Chun Chong, said he was introduced to the trust fund investment by an insurance agent. Between 2022 and 2023, he invested a total of RM80,000.

“I only received two return payments amounting to RM5,500 in total. After that, no further payments were made, and I have been unable to recover my money,” he said.

Another individual, Sim Teik Ming, became involved in investigating the matter after discovering that two of his relatives were among the affected investors. Through his own inquiries, he said he gradually uncovered information regarding the company's registration background and operational structure, leading him to suspect that the investment product may have been fraudulent.

According to Sim, the issue became apparent two to three months ago when his relatives' investment contracts reached maturity but their capital was not returned. Seeking clarification, they brought their investment agreements to a lawyer to better understand the contractual terms and their legal position.

“Based on the information I have gathered, approximately 30 to 40 percent of investors received return payments during the early stages of the investment. However, after June 2023, many investors stopped receiving any returns at all,” he said.

He added that a large number of affected investors had already filed police reports across various parts of the country over the past two years.

Numerous Reports Filed but Little Progress Seen

Satees Muniandy expressed concern that despite numerous police reports being lodged against the company, there has been little visible progress in the case.

He noted that the Malaysian Anti Corruption Commission (MACC) had previously conducted investigations under an operation known as “Op Amanah,” yet no significant developments have been publicly disclosed.

“We urge both the MACC and the police to reopen and thoroughly investigate this matter. The victims deserve answers, and the public has a right to know the outcome of previous investigations,” he said.

Satees questioned what had happened to the findings from last year's probe, including details regarding the flow of funds, the identities of individuals involved, the company's directors, and the reasons no charges have been brought before the courts.

“What concerns me most is that the company is reportedly still operating and continues to promote investment schemes through agents. This is a very serious issue that requires immediate attention,” he added.

He also warned members of the public to exercise caution when approached with investment opportunities that promise unusually high returns.

“At the beginning, investors may receive returns of around 8.5 percent as promised, which creates confidence and encourages further participation. However, many eventually find themselves unable to recover even their original capital,” he said.

Estimated 1,800 Investors Affected Nationwide

Lawyer Foo Seong Xiang revealed that based on information collected from victims, the issue may be far more widespread than initially believed.

He estimated that approximately 1,800 investors across Malaysia may have been affected, with total losses potentially reaching RM104 million.

“This is not a small amount. Many of the victims are senior citizens who invested their retirement funds and life savings. The financial and emotional impact on them has been significant,” he said.

Foo urged all affected investors to lodge formal police reports if they had not already done so. He also encouraged victims to submit complaints to the Securities Commission Malaysia to help regulators gather sufficient information and assess whether further enforcement action is necessary.

As calls for greater transparency and accountability grow, victims continue to seek answers regarding the status of investigations and the prospects of recovering their investments. For many, the priority is no longer the promised high returns but simply recovering the savings they entrusted to what they believed was a legitimate investment opportunity.