wmlro.com: 3000 victims of fraud - allegations
An amazing story of an apparent fraud is emerging in the national press in Malaysia.
The story, broken by The Star, a national newspaper and carried by other media, is one of callous thievery, if it is true.
It is alleged:
1. Fraudsters targeted people in relatively unsophisticated parts of the country
2. They quickly identified if potential victims had savings.
3. They sold the idea of a worm farm
4. They promised extraordinary returns. One man told The Star that he was promised a return of almost MYR900 per month on a lump sum investment of MYR5,000 (around GBP900).
5. The sums alleged are huge: one man says he and his friends invested about MYR500,000. He forced repayment of about 30% of his money but his friends saw nothing. He was also given a bounced cheque, he claimed.
6. Evidence that there was at least a partial Ponzi scheme came from a former school headmaster: he says he invested MYR100,000 and, in the beginning, he was paid monthly - but the money stopped coming in at the end of 2009.
A company, Millenium Agrotec (M) Sdn Bhd (private limited company) says that it has filed a police report saying the the alleged fraudsters used their letterheading as a prop when soliciting money from victims.
www.thestar.com.my
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