400 Malaysians Deceived in RM100 Million Forex Scam: MHO Calls for Justice

A potentially fraudulent forex investment scheme has allegedly caused nearly 400 unsuspecting individuals to suffer collective losses of approximately RM100 million, according to the Malaysia International Humanitarian Organisation (MHO).

MHO secretary-general Datuk Hishamuddin Hashim disclosed that 385 police reports have been lodged across the country in response to the alleged scam. While some of these reports have been investigated under Section 420 of the Penal Code, others have been referred to different agencies, with a portion classified as 'No Further Action.' Hishamuddin noted that MHO is actively compiling additional reports from affected individuals.

During a press conference held on Tuesday (August 20), Hishamuddin was accompanied by about 400 victims of the purported investment fraud. He revealed that the victims' losses ranged from RM10,000 to RM100,000, with some individuals suffering losses as high as RM1 million.

Hishamuddin further announced plans to take the victims to Bank Negara in the coming weeks to file formal reports. He urged law enforcement and investigative agencies, including the police, to conduct thorough investigations into these cases.

The alleged scheme, which began in 2016, reportedly paid out returns to investors until 2022. However, following 2022, payments ceased, with the operators providing various excuses for the delays. Hishamuddin explained that the scheme involved a “platform” registered with a company in Indonesia, another with the Labuan Financial Services Authority (LFSA), and several private companies registered with the Companies Commission of Malaysia for marketing activities.

The operation, according to Hishamuddin, utilized two brokers—one purportedly a licensed forex broker based in Indonesia and the other registered in Dubai. He identified three individuals as the suspected masterminds behind the scheme. The primary suspect is believed to be the broker based in Indonesia, while a Malaysian promoter and a Russian who posed as a forex trading expert allegedly assisted in the operation.

The presence of the so-called subject matter expert led many victims to believe the investment scheme was legitimate. They were lured with promises of profits and, in some cases, signed contracts guaranteeing monthly returns. However, once they invested their capital, they lost control and access to their funds, relying solely on the promised profits, which never materialized. Even after their contracts expired, they received neither their returns nor their initial capital.

Hishamuddin mentioned that some victims had direct interactions with the alleged mastermind, but their requests for the return of their invested funds were ignored.

Addressing the possibility of legal action, Hishamuddin emphasized that Malaysia has the legal provisions to prosecute individuals involved in criminal activities, even if they operate from abroad. He cited the possibility of prosecution in absentia and mentioned that enforcement agencies could utilize Mutual Legal Assistance (MLA) to request extradition of the suspects.