KUALA LUMPUR - Controversial gold trading firm Genneva Malaysia Sdn Bhd is back in the news again, with 4 former senior officers facing a record 915 charges related to money laundering and illegal deposit-taking.
The news may provide some balm for the tens of thouands of Genneva clients who found themselves 'burnt' after the multilevel-like gold-purchasing scheme fell apart like year following raids by Malaysia's central Bank Negara.
"We want those who enticed us to invest with glowing promises to be punished. Some of our relatives have scolded us for being greedy ourselves. No doubt, we should have been wiser but we just wanted to earn a good return. You look at how property prices have jumped up, we simply cannot afford to buy. We have to try to catch up and at that time, Genneva was like a miracle investment," a Genneva investor told Malaysia Chronicle.
"But now, my savings are gone. Even if Bank Negara releases the gold bullion, will we be able to get back our share, there is so much confusion. We hope the government will be more proactive and regulate the market properly. Why let it run wild and then turn around and blame us for being greedy? Now, even if these jokers get hit with 10,000 charges, we still won't be able to get back our money. Right?"
Record 4
According to the Star, the 4 men are Philip Lim Jit Meng, 56, Tan Liang Keat, 41, Lim Hah Heng and Ng Poh Weng.
They were charged in the Kuala Lumpur Sessions Court under the Banking and Financial Institution Act 1989, Anti-Money Laundering Act and Trade Descriptions Act 2011.
Philip and Liang Keat had earlier pleaded not guilty in another Sessions Court to making false statements on a website that gold trading was in line with Syariah principles.
They were granted bail of RM20,000 with one surety each. The offence under Section 18 (1) of the Trade Description Act 2011 carries a fine not more than RM250,000 and imprisonment for not more than three years, or both upon conviction.
Gold pyramid scam
An estimated 60,000 people in Malaysia had lost their money after Bank Negara suspended Genneva’s gold bullion, accounts and other assets worth RM99.8 million in cash.
The central bank also seized 126kg in gold bullion on suspicion the company violated various banking and financial laws.
According to Bank Negara, Genneva Malaysia’s debt was over 10 times the amount of its assets despite having sold the precious metal at up to 25 per cent higher than the market rate, signalling that the venture was unsustainable in the long run.
The central bank also said early checks showed that Genneva Malaysia had relied heavily on cash from new customers to keep it afloat.
The firm's alleged violations included include taking deposits without giving gold in return, money laundering, evading taxes, appointing agents without licence, failing to file statutory documents, and misrepresenting itself as an investment firm and giving false descriptions on its business after several people lodged complaints with the police.
Singapore’s Commercial Affairs Department has also conducted a similar operation against Genneva Pte Ltd in Singapore.
MORE TO COME
Malaysia Chronicle
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