2 law firms under probe for allegedly embezzling RM1mil

 

Bukit Aman commercial crime investigation department director Ramli Yusoof said one case involved a law firm in KL while another in Johor.

KUALA LUMPUR: 

Police are investigating two law firms suspected of embezzling close to RM1 million in funds entrusted to them by their clients.

In Selangor, a 72-year-old man lodged a police report against a Kuala Lumpur-based law firm on Aug 8, claiming it had failed to transfer RM140,000 from the sale of a plot of land in Batu Pahat, Johor, since June.

Bukit Aman commercial crime investigation department director Ramli Yusoof said the victim had appointed the firm in November last year to manage the land deal.

Last month, the firm sent cheques to the complainant twice, but both cheques were rejected by the bank,

 he said at a press conference here.

Meanwhile, a 51-year-old man in Johor filed a report against a law firm in the state on Aug 6, claiming it had embezzled RM833,473.75 belonging to him.

Ramli said the complainant, a property consultant, had appointed the firm as a stakeholder in property deals and to manage the service fees on his behalf.

In 2017, the complainant was the subject of an investigation by the Malaysian Anti-Corruption Commission and was subsequently charged in court. His funds were also frozen.

In May this year, the Court of Appeal freed him of the corruption charges and ordered the frozen funds to be released.

However, in June, the firm’s founder allegedly admitted to the complainant that he had used the funds to pay his housing loan to prevent it from being foreclosed.

Ramli said both cases are being investigated under Section 409 of the Penal Code for criminal breach of trust. - FMT