Another Penang-based money game operator could be on the brink of collapse as a result of alleged heavy losses in forex trading.
- Alleged losses of several hundred million ringgit attributed to pound slump following British election results
- Claim of ties with English Premier League club West Bromwich Albion FC
The Star reported that a loyal supporter, who wanted to be known only as Jack, said the Penang-based company suffered a heavy blow with two of its top fund managers losing several hundred million ringgit after the pound took a plunge following the shocking British election results on Friday.
Although his upline had told him to wait for further updates from the company, Jack was not convinced the mess could be sorted out that easily.
“Things sure don’t look good. I have about RM50,000 in the scheme since two years ago,” he said.
A 51-year-old businesswoman from Tanjong Bungah apparently invested about RM220,000 in the scheme last year.
“I started with RM50,000 last January and topped up the amount gradually,” she said.
According to the woman, the company announced on its website early this year that it was in partnership with football club West Bromwich Albion FC.
“It has been around for five years and was doing so well before this.
“Many people, including a lot of my friends, will get burnt if the company goes bust,” she added.
Self-employed SG Tan, 36, is hoping everything would be fine.
He first invested US$1,000 (RM4,200) in January and earned US$300 (RM1,260) by March, after which he topped up another US$1,000.
“The scheme looks convincing. We can even set our limit of investment losses by percentage. For example, if your investment is RM4,200 and you set 30% as the limit, then the most you stand to lose is only RM1,260,” he said.
“And the fund managers did really well, until recently when the losses came up to about 90%,” he added.
Tan is keeping his fingers crossed that members would not have to bear the losses.
“Just pay us the balance based on the limit of losses that we set,” he said.
According to The Star, the company was established in 2012 and has the largest base in Malaysia at 55%, followed by China at 19%. Other members come from countries such as Singapore, Indonesia, Brunei, Cambodia, the Philippines, Hong Kong and Australia.
It is learnt that the minimum investment is US$100 (RM420), with a promised passive monthly return of between 10% and 30%. In addition, members earn a 5% referral commission on investments by their recruits or they can opt for pips rebate or profit sharing.
A notice on the company’s Facebook page yesterday said the trades of fund managers conducted last Wednesday were under investigation.
“Trades of fund managers on 8 June 2017 are still being investigated and checked to ensure all trades of fund managers and their followers were executed correctly,” it said.