Investors seek legal action against businessperson

 

A total of 15 individuals are suing businessperson Goh Hwan Hua and four companies over alleged failure to pay monthly redemption value sums from the plaintiffs’ invested amount of over RM8 million.

However, Goh - who co-founded troubled budget carrier MYAirline - and the four companies have a pending application to strike out the individuals’ writ of summons on grounds that it is purportedly scandalous, frivolous, vexatious, and an abuse of the court process.

According to the 15 investors’ statement of claim, the plaintiffs claimed that Goh and the other four defendants - I-Serve Online Mall Sdn Bhd (ISOM), Bright Moon Venture PLT (BMV), QA Smart Partnership PLT (QAS), and Trillion Cove Holdings Berhad (TCH) - breached fiduciary duties and should be made personally liable over losses suffered by the investors.

The plaintiffs, aged between 58 and 74, claimed that Goh had in conference calls with them made representations over ongoing issues faced by ISOM and the impact it would or would not have over the investors’ monthly returns.

The 15 individuals pointed out that ISOM, TCH, and the other firms were raided by Bank Negara Malaysia (BNM) on Nov 11 2021, and that a freezing order was allegedly issued against the companies.

The plaintiffs claimed that this is shown by Goh filing a separate legal action (judicial review) at the Kuala Lumpur High Court in January last year to set aside BNM’s freezing order.

The plaintiffs are seeking repayment of the RM8 million subscription price as well as repayment of the owed monthly redemption arrears and five percent annual interest on any awarded judgment sum, among other reliefs sought.

Meanwhile, in Goh’s affidavit supporting his application to strike out the writ of summons without it being subjected to a full trial, the businessperson pointed out that the lawsuit is statutorily prohibited from being mounted.

He contended that it is because the impugned funds sought by the suit are part of funds seized pursuant to orders under the Anti-Money Laundering Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001 (AMLA).

“The statutory prohibition under Section 54(3) AMLA would operate to render this action a nullity, an abuse of process and liable to be struck out in limine,” Goh contended in the affidavit filed on Sept 6 last year.

The 66-year-old claimed the legal action was scandalous, frivolous, and vexatious as he was neither privy nor a party to the contracts entered into between the plaintiffs with BMV, QAS, and TCH.

Goh noted that the purported breaches of contracts are solely attributable to the freezing orders issued by BNM and the seizure orders taken out by public prosecutors.

He claimed that the plaintiff’s actions were incongruous and inconsistent with one another, defeating their own admissions, and unsustainable due to not being supported by material particulars.

“The plaintiffs have knowledge of the seizure order and are presumed to have knowledge of the statutory prohibition under Section 54(3) AMLA.

“Yet the plaintiffs defied the law by filing this action without obtaining the written consent of the public prosecutor,” Goh said in his contention that the suit amounted to an abuse of the court process.

All five defendants have previously filed their statements of defence last year against the lawsuit.

The Kuala Lumpur High Court has fixed Oct 31 to hear the defendants’ bid to nullify the lawsuit.

Law firm Raj & Sach is appearing for all 15 plaintiffs.

Goh is represented by law firm Mathews Hun Lachimanan, while counsel from Chetan Jethwani & Company appeared for ISOM and TCH.

Law firm D’Cruz & Sia is acting for BMV and Qas.

On Sept 1 this year via several media statements, BNM said it had imposed RM50 million in compound against i-Serve Group for accepting deposits without a licence.

The central bank said it imposed the compound for seven entities under the i-Serve Group per Section 137(1) of the Financial Services Act (FSA) and for money laundering under Section 4(1) of AMLA.

BNM said the compound was imposed on Oct 19, last year with the written consent of the public prosecutor under a joint enforcement action that followed on the heels of the central bank's probe, which found that the offences were conducted between June 2018 and Sept 2021.

The seven entities are i-Serve Online Mall Sdn Bhd (RM12.5 million), i-Serve Technology and Vacations Sdn Bhd (RM12.5 million), QA Smart Partnership PLT, QA Elite Partnership PLT, QA Premium Partnership PLT and MM2217 PLT and Valuewise PLT (RM5 million each).

BNM added that the entities paid the compound on Nov 16. - Mkini