44 from Kelantan lose RM1mil to gold investment scam

KUALA LUMPUR: A gold investment scam has left 44 victims, mostly housewives, from Kelantan devastated after they collectively lost more than RM1 million, said the Malaysia International Humanitarian Organisation (MHO).

MHO secretary-general Hishamuddin Hashim said the number of victims could be much higher, and urged others to come forward.

“The number of victims could be in the hundreds but, so far, only 44 have come to us,” he said at a press conference here today.

Hishamuddin said the scheme was advertised on social media from 2021 to October 2023, promising attractive returns through buying gold from a “mastermind” at below market prices.

He said the victims were lured by promises of profits through packages that appeared to lock gold prices at discounted rates, with returns increasing over longer investment periods.

The packages included a three-month plan in which investors could buy gold at RM300 per gm and sell at RM400, making a profit of RM100 per gm at the end of the third month.

“The same applied to six-month packages, in which investors could buy gold at RM200 per gramme and sell at the market price, sometimes making RM200 per gramme. The longer the investment period, the higher the profits promised,” he said.

However, he said that in October 2023, the “mastermind”, in his late 30s, who is also from Kelantan, turned the returns promised into percentages.

Investors were promised a 5% return in profits in the first month, 10% in the second month, and so on, said Hishamuddin.

Present at the press conference were some of the victims, who said they were attracted to the scheme so they could earn additional income.

A housewife, who declined to be named, said she was introduced to the scheme by a friend and lost RM18,000.

“The company has not given me my returns since October 2023,” said the woman, in her 50s.

An “agent” who coordinated with the investors said the scheme was managed through the Telegram app.

“I had one leader above me who used to deal with the ‘mastermind’. I received my commission on time until October 2023. After that, the money stopped coming,” the woman, who only wanted to be known as Izany, said.

Hishamuddin said the 44 victims lodged police reports in December 2023, and three cases had been brought to the Shah Alam court.

He urged Bank Negara Malaysia and the Companies Commission of Malaysia to investigate the company for possible fraud.