Press Digest - No signs of concrete action from authorities against 'money-games'

WHERE is the action the authorities are supposed to take against operators of high-yield investment schemes a.k.a "money games"?

Within two weeks of JJ Poor To Rich's (JJPTR) collapse on April 22, at least five other "money game" investment companies reportedly went bust with investors losing millions of ringgit.

However, there is still no sign of any concrete action by the law enforcement agencies, prompting the public to ask the question: "Is money game legitimate?"

According to a report in China Press today, among the latest high-yield investment scheme operators to collapse is GD Income Builder, barely over two weeks after it started its operation.

The news report said the company's boss had gone "missing" on May 3 and the Kedah police have received five reports against the company.

A day after news spread that GD Income Builder's operator had gone "missing", four of the company's employees jointly issued an apology to investors after failing to contact their boss.

The daily said news of GD Income Builder's collapse was confirmed on May 4 when some investors, who had been staking out its office in Jalan Raja Uda, Butterworth, for the boss to show up, found the company's signboard and letter box were removed overnight.

According to information made available, the company was formed by three individuals from Kedah.

One of the founders, 39-year-old Johnson Chean, had officiated at the opening of the Butterworth office on April 15.

An upline of the scheme, who invested RM28,200 but was mistaken to be one of the founders, lodged a report on May 3 to clear the air.

The other money games that went bust were Richway Global Venture, on April 27; CYL or Change Your Life (April 28); Paramount-I Create a Life (May 2); and MAXflex (May 5).

On May 3, Domestic Trade, Cooperatives and Consumerism Minister Datuk Seri Hamzah Zainudin said Investigations into JJPTR and the individuals involved in it were being conducted by the police.

On Thursday, Bank Negara warned that action can be taken against perpetrators, and even investors, of illegal financial schemes, following controversies surrounding JJPTR and other money game operators.

The central bank said it views the matter seriously and will not hesitate to enforce the law against perpetrators and promoters of such schemes.