The masterminds behind investment group Royal Gold have been arrested as police continue to investigate the pile of reports – a total of 193 – accusing it of being a scam outfit.
- Suspects claimed they had close ties with royalty and dignitaries to boost the confidence of potential investors
- Official documents had seal of member of royalty
- RM200m estimated total losses
- Promised returns of 2% monthly for gold investment scheme, 15% monthly for oil bunkering scheme
- Luxury cars, including Bentley and Porsche, branded watches, gold wafers, RM200k cash seized
Police have arrested six people, among them a Datuk Seri and three Datuk, for alleged involvement in a money game scam operation that has left investors RM27.5 million poorer.
However, investigators have estimated total losses at a staggering RM200 million, on the belief that many other victims did not lodge reports.
It is learnt that investors were duped into believing that their investments would earn a 20% profit monthly.
The syndicate’s modus operandi involved someone posing as a member of a royal family to convince investors that the scheme was legitimate.
Official documents of the group had the seal of the member of royalty attached to it.
Federal Commercial Crimes Investigation Department (CCID) director Comm Datuk Seri Amar Singh said in a press conference at Bukit Aman on Friday that police were trying to uncover the role of the royal family member.
“We are trying to verify if he is part of the group, or just used to woo investors,” he said.
It is also learnt that police have recorded the statement of the member of royalty.
Investigations revealed that investors would get returns for the first three months. Then the money stops coming in.
Another scam operated by the group involved oil bunkering, which promised higher returns.
It is believed that about 2,000 persons have fallen prey to the group.
Six suspects, including a Datuk Seri and three Datuks, were arrested in Kuala Lumpur and Penang on Jan 26. Aged between 42 and 62, they were remanded under the Prevention of Crime Act (POCA).
“The suspects comprise the company directors and organisers of the scheme, whereby the syndicate conducted its operations by offering two major investments, namely gold bars and oil trading, with lucrative returns for a period of nine months.
“For the gold investment scheme, investors were promised returns of 20% per month, while for the oil bunkering scheme, they were promised returns of 15% per month,” Amar said.
He revealed that the suspects claimed that they had close ties with royalty and dignitaries, so as to raise the confidence of potential investors.
Amar said in police’s raids, eight luxury vehicles, including a Bentley and Porsche, three branded watches, eight mobile phones, three ATM cards, five chequebooks, four gold wafers and RM200,000 in cash were seized.
Earlier report: Jun 10, 80 Victims Lodge Report Against Royal Gold Scheme