Calls for MonSpace to Prove It is Legit

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Showdown between Chinese investors, accompanied by DAP leaders, and MonSpace founder Dato’ Sri Jessy Lai.

With the MonSpace saga getting more complex, here is what we know so far.

Segambut MP Lim Lip Eng demands proof of:

  • legitimate business
  • touted US listing
  • banking licence in China

Lai’s claims:

  • not an investment but e-commerce company
  • provides funds for members to set up businesses
  • former IGP not involved in MonSpace companies in Malaysia
  • investors can claim back principal if they are worried

Fact checks:

  • 19 Chinese nationals lodged police reports 
  • in Bank Negara’s Financial Consumer Alert list
  • companies here have no assets or capital as per SSM records

Unverified figures:

  • More than 100,000 investors in China
  • More than 14m members worldwide

Several DAP members, including Segambut MP Lim Lip Eng and Selangor DAP committee member Ronnie Liu, as well as a group of 19 Chinese nationals went to the headquarters of MonSpace at Bukit Jalil yesterday morning to confront Dato’ Sri Jessy Lai to seek explanations and get a refund on their investment. The Chinese investors claimed that they were misled into placing their money in a MonSpace investment scheme, which guaranteed huge returns that were never delivered.

While waiting for Lai to arrive, more than 50 fervent supporters booed and jeered at the DAP representatives. They continued to harass Lim when he tried to explain the claim of the Chinese nationals to reporters. During the heated argument, Lai alleged that she did not cheat any of the Chinese investors.

She said that the Chinese group had lodged police reports, thinking their investments were fake. She said the matter has been passed to her lawyers who will prove that the investments are not fake.

She asserted that she is running a legal business and investors are briefed on how the “investment system” works before they invest.

After filing their police reports, the Chinese investors had said most of them had invited their family members and friends in China to invest as well and they were ashamed to face them now.

Liu said he was willing to accompany Lai to China to tell her side of the story to investors there, believed to be more than 100,000.

Claiming that MonSpace had threatened to sue him, Liu and the DAP for defamation, Lim challenged Lai to take legal action if his claim that the company was illegally raising funds from investors was unsubstantiated.

The Star reported on May 22 that MonSpace said that it would take legal action against any group or individual making defamatory statements against it. In a statement to the media, MonSpace said it was functioning professionally and had engaged a law firm to keep track of statements made.

Lim also demanded that Lai provides proof that MonSpace is running a legal business with no attachments to any monetary investment schemes, that it is going to be listed in the US and that it has a banking licence in China. He said he would give Lai one to two months to furnish all the proof.

In responding to claims that MonSpace is involved in illegal investment schemes, Lai said, “We are not an investment company. Rather, we are an e-commerce company like Lazada.

“You can go to our web page and purchase our products from there, which is our main business,” she said in a press conference at a restaurant owned by MonSpace yesterday.

According to Lai, MonSpace also assists its members by providing funds for them to set up businesses, and properties from which to run them.

According to FMT news portal, Lai’s explanation appears at odds with the statement of one of the company’s members, who said he had made an investment when he joined MonSpace. Apparently, he said he could get RM4,000-RM5,000 every month for eight months if he invested RM10,000 as the initial amount. This would earn him a profit of about RM40,000.

Lai also said claims that MonSpace had been blacklisted by Bank Negara are incorrect as the company was only listed on the central bank’s “alert” list.

Bank Negara’s updated Financial Consumer Alert list on May 12 revealed companies and websites that were unauthorised to receive funds in Malaysia. MonSpace topped the list of 291 companies.

Two days ago, Lim alleged that former inspector-general (IGP) of police Tan Sri Musa Hassan is part of the MonSpace group. He gave Musa 24 hours to explain what he was going to do regarding the Chinese investors and MonSpace’s “illegal investment scheme”.

FMT reported that, earlier, Liu had called for Musa to clarify his involvement and also urged him to resign from MonSpace to avoid tarnishing the reputation and credibility of the police.

“Step forward and don’t be a coward. We have asked him for the past two weeks to step out and clarify his involvement,” Liu said, adding however that the former IGP preferred to remain silent on the issue, leaving it to Lai to explain.

“The former IGP has no direct links with MonSpace. He is the president of MonSpace Net Inc, which is the listed company.

“In regards to all the MonSpace companies in Malaysia, he is not involved in any of these,” Lai said.

According to FMT, a check with SSM revealed that five other companies are registered under MonSpace and all of them are shell entities without any asset or capital.

MySinchew news portal reported that Lai claimed MonSpace is a multinational company with part of its business listed on the US over-the-counter (OTC) market.

The OTC market is not an actual exchange like the NYSE or Nasdaq. It is for securities not listed on a stock or derivatives exchange.

According to MySinchew, Lai said that investors could claim back their principal at the MonSpace head office if they were concerned about their investments.

There are reportedly 14 million members registered under MonSpace worldwide. By purchasing the company’s products, members accumulate points which can then be exchanged for a gift.

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