MBI Founder Remanded, Accounts Frozen, Cars and Cash Seized in Double Raid

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In a continued crackdown on money games, police arrested the founder of the MBI Group which operates a pyramid investment scheme. 

  • Vehicles seized include bullet-proof Range Rover Vogue SE
  • Cash seized in ringgit and 13 foreign currencies
  • About 20 more MBI Group subsidiaries to be investigated

The suspect, in his early 50s, had been remanded for four days from yesterday. He will be investigated under the anti-money laundering law.

Domestic Trade, Cooperatives and Consumerism Ministry (KPDNKK) enforcement director Datuk Mohd Roslan Mahayudin said during a raid at the founder’s luxury house at Taman MBI Desaku in Kulim, Kedah, three luxury cars worth RM1.55 million were seized.

The vehicles were a Toyota Vellfire (Executive Lounge, worth RM300,000), a Jaguar XJ L (worth RM350,000), and a Range Rover Vogue SE (bullet-proof, worth RM900,000).

Roslan said officers also seized RM187,612 cash and a total of RM218,000 cash in 13 different foreign currencies – US dollars, Australian dollars, New Zealand dollars, Japanese yen, Korean won, yuan, Taiwan dollars, Hong Kong dollars, Singapore dollars, Thai baht, Indonesian rupiah, Cambodia riel and Laos kip.

Masry Che Ani/Sunpix

In another raid on a home in Sungai Dua, Butterworth, officers seized RM280,000 in cash.

The KPDNKK officers who took part in the operation that began at 6:30 am yesterday, were under the direction of the Attorney-General’s Chambers (AGC), which heads the National Revenue Recovery Enforcement Team (NRRET).

The NRRET is currently a team of 13 agencies, including the police and Inland Revenue Board officers.

Roslan said the raids were ordered after the investment scheme operated by MBI International was found to be operating illegally.

He said no police reports were made against the money scheme.

“We hope those who are already in the scheme can also step forward to lodge reports with us to help in investigations,” he said.

“The success of the operation is thanks to public information. Investigations were made by police and the enforcement officers,” he added.

Four bank accounts worth a total of RM30 million belonging to a relative of a suspect in the Mface Club Scheme, under MBI Group, were frozen under the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001 for 90 days.

The offence carries a jail sentence of not more than 15 years and a fine of not less than five times the total illegal proceeds or RM5 million, whichever is higher.

Dubbed as Ops Token II, the operation is a follow-up from the first operation on May 29 under Ops Token I on Mface Club in Lembah Klang and M Mall in Penang.

When asked if this recent operation was meant to cripple the whole illegal money scheme.

“We have frozen the accounts, by right their operations should have been crippled,” Roslan said.

He added that the MBI Group’s other subsidiary companies, about 20 of them, will also be investigated.

“To date, this brings the total value of accounts frozen, related to this money scheme, since our first operation on May 29, to RM209 million.

“This involves 98 accounts, of which 49 were from subsidiaries of MBI and another 49 are individual account holders,” Roslan said.

He said the account holders would be called up for questioning.

Roslan urged the public not to invest in any sort of money schemes before referring to Bank Negara.

“Do not be involved in such schemes where the returns are too good to be true. We have to be careful.

He said those who want to check can call the Domestic Trade Division hotline at 1800-886-800 or visit http://e-aduan.kpdnkk.gov.my.

Checks by The Sun Daily showed it was business as usual at M Mall, which honours the digital currency issued by MBI.

Checks by The Sun Daily showed it was business as usual at M Mall, which honours the digital currency issued by MBI.

Traders there were in the dark about the raids.

Clothes trader Khor Xing Yi, 19 said she was not aware of the enforcement action but felt such action would not affect businesses in the mall.

“I do not know, it might be a concern for the top management but not for us,” she said, adding the digital currency could still be used.

Another trader, who only wanted to be known as Yeoh, said he was shocked when he found out what happened.

He, however, said this was not a concern for him as he had nothing to do with the company and was just selling his wares.

A shopper, who only wanted to be named as Haiza, said she was worried about the latest development in regards to the company.

“So far I still can use my M-Coin (the name of the digital currency), hopefully, this will not be affected,” she said.