Forex Scam Defrauds Over RM100 Million from Hundreds of Investors

A foreign exchange (forex) investment scam that swindled more than 100 million ringgit from hundreds of investors has prompted the Malaysian International Humanitarian Organization (MHO) to take action. Today, MHO submitted a formal complaint on behalf of 442 affected investors to the Labuan Financial Services Authority (LFSA), urging the agency to investigate the company involved.

During a recent press conference, MHO Secretary-General Datuk Hishamuddin, along with MHOs Public Relations Director for the Chinese community, Hu Jieliang, accompanied more than 60 investors to shed light on the matter. Hishamuddin revealed that MHO has received reports from 442 investors, both domestic and international. However, he stated that the actual number of victims is likely much higher, as many have yet to come forward.

According to MHOs assessment, the 442 individuals who sought assistance likely represent only 10% of the total number of affected investors. Many others are suspected to remain unidentified, with victims spread across Singapore, Indonesia, Brunei, and Malaysia.

Hishamuddin explained that the perpetrators behind the forex investment scheme registered a company under LFSA and obtained a brokerage license. They then falsely claimed to have government approval and aggressively promoted their services to gain investors trust. He emphasized that Malaysian law clearly limits such licenses to transactions with foreign companies and prohibits their use for soliciting public investments. However, the implicated company unlawfully leveraged its license as a marketing tool to attract investors.

Hishamuddin further disclosed that the company in question was delisted by LFSA in late 2023. However, no legal action has been taken against it under the relevant financial regulations.

MHO has already filed complaints with both the police and Bank Negara Malaysia, prompting investigations from both authorities. Hishamuddin stated that LFSA must also take responsibility by conducting its own investigation and prosecuting those accountable for the forex scam.

One of the victims, Datuk Ng Ming Kuan, shared his experience, stating that he had been involved in the forex investment scheme since 2018 and had invested millions of ringgit. He noted that many victims feel embarrassed to come forward, but he believes that speaking out is necessary to warn others. He also urged law enforcement agencies to take firm action to prevent similar scams from occurring in the future.

During an earlier press conference on August 20 last year, MHO revealed that the scheme was orchestrated between 2016 and 2023 by an Indonesian mastermind, a Malaysian recruiter, and a Russian accomplice who claimed to be a forex trading expert. The group lured victims with promises of high returns, ultimately defrauding over 400 local investors of more than 100 million ringgit.

The scam operated through multiple entities, including companies registered under Malaysias Companies Commission, LFSA, and Indonesian authorities, as well as two forex brokerage platforms licensed in Indonesia and the United Arab Emirates. Most victims lost between 10,000 and 100,000 ringgit, while some suffered losses exceeding one million ringgit.

Following the exposure of the scam, Malaysias National Commercial Crime Investigation Department (CCID) Director, Datuk Seri Ramli Yusof, confirmed in an official statement that two local and foreign suspects have been arrested to assist in the investigation.