MonSpace in Trouble Again – 16 Premises Raided, 72 Bank Accounts Frozen

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Special operations on multinational e-commerce corporation MonSpace Sdn Bhd founded by Datuk Seri Jessy Lai.

  • Frozen:

– 25 MonSpace bank accounts, 47 individual accounts – total RM5.87 million

– Transferring of ownership of 26 vehicles – worth RM6.24 million

– Cash – RM93,879

– Company products – worth RM980,352

  • Company allegedly uses direct-selling model led by Jessy Lai
  • MonSpace personnel banned from travelling
  • Company blacklisted under Bank Negara’s Financial Consumer alert
  • Police reports lodged by investors who lost money

This was the result of raids on 16 premises across Ipoh and the Klang Valley linked to the company for allegedly running an illegal investment or “money games” scheme.

The company allegedly uses a direct-selling model led by Datuk Seri Jessy Lai Chai Suang.

The operation, codename “Ops Coin”, was held on Tuesday (July 24), involving 130 officers from various authorities. These included the Domestic Trade and Consumer Affairs Ministry (KPDNKK), the police, Bank Negara, the Attorney General’s National Revenue Recovery Enforcement Team, and the Companies Commission of Malaysia, among others.

Andy Yong/Facebook

KPDNKK enforcement director Datuk Roslan Mahayudin said apart from business premises and homes, the team had also raided three premises used as server centres by MonSpace Group.

Following a month-long investigation by the authorities, the raids at locations in the Klang Valley began at 11.30am and ended at 5pm.

Andy Yong/Facebook

The raids resulted in the freezing of 25 of MonSpace’s bank accounts and 47 individual accounts across nine banks totalling RM5.87 million.

Also seized were computers and company products worth RM980,352 and cash in four currency denominations amounting to RM93,879. The authorities have also frozen the rights to transfer ownership of 26 vehicles worth RM6.24 million in relation to the raids.

Piles of documents were also carted away.

Roslan said the investigations were being conducted under Section 27B of the Malaysian Direct Sales and Anti-Pyramid Scheme Act 1993 and the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act (AMLA) 2001.

“No arrest was made during the raids. The founder (Lai) has been very cooperative,” Roslan told a press conference today.

“We feel there is no need for the founder to be arrested as we were promised cooperation, including coming to the ministry’s office as and when we require more information,” he added.

However, MonSpace’s personnel are prohibited from travelling abroad until further notice.

MonSpace, which been in business for several years, ran into trouble when police reports were lodged against the company by investors in May last year, alleging they lost money which they had invested.

MonSpace is blacklisted under Bank Negara’s Financial Consumer alert which consists of 291 companies.

Earlier reports:

Jun 19, 2017, Failing to Meet MonSpace Founder, Chinese Nationals Lodge Police Reports

May 25, 2017, MonSpace Takes up Challenge to Take Action

May 24, 2017, Calls for MonSpace to Prove It Is Legit

May 22, 2017, Disgruntled Chinese Nationals Arrive to Demand Action Against MonSpace