Gold investors will have to wait for High Court decision on RM20mil forfeiture

 

Genneva Sdn Bhd was convicted of five counts of collecting deposits from the public without a licence and fined RM2 million in 2018, while five of its directors were jailed and fined for money laundering and illegal deposit-taking. (File pic)

PUTRAJAYA: About 175 gold purchasers and investors in Genneva Sdn Bhd will have to wait for the High Court to decide on the prosecution’s appeal to forfeit about RM20 million worth gold bars and other properties from the company and its four former directors under the anti-money laundering law.

This follows the Court of Appeal’s ruling today in allowing Genneva’s appeal that the matter be heard and determined by the High Court.

Justice SM Komathy Suppiah said it is only upon a preliminary order made by the High Court that the seized properties are forfeitable.

She said the court is required to publish third party notices under Section 61(2) of the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001 (Amla) and consider third party claims to the seized properties.

Justice Vazeer Alam Mydin Meera led a three-member Court of Appeal bench together with Justice Ahmad Zaidi Ibrahim and Komathy to hear Genneva’s appeal.

On Feb 21, 2018, the Court of Appeal sentenced directors Ng Poh Weng, Marcus Yee Yuen Seng, Chin Wai Leong and Liew Chee Wah to three years in jail and fined them RM1 million each for money laundering.

The court also sentenced them to five years jail and fined them another RM1 million for illegal deposit-taking.

Genneva Sdn Bhd, as a company, was convicted of five counts of collecting deposits from the public without a licence and fined RM2 million.

Bank Negara Malaysia then seized the gold bars and monies from Genneva as they were suspected to be proceeds from unlawful activity or used in the commission of offence of money-laundering.

Upon the application made by the prosecution, the court then issued third party notices calling on bona fide purchasers who claim to have interest in theproperties to appear before the sessions court to show cause as to why they shouldl not be forfeited and to return them to the owners.

On 27 Aug 2021, sessions court judge Rozina Ayob dismissed the prosecution’s application for a forfeiture order and further ruled that the third party notices under Section 61 of Amla were premature and, therefore, there was no necessity for her to consider the third party claims.

Dissatisfied with the sessions court’s decision, all the parties appealed to the High Court.

Then High Court judge Zaini Mazlan held that the sessions court judge should have decided on the applications by the bona fide third parties.

He stayed the appeals by the prosecution, Genevva, the gold purchasers and investors (respondents) and sent back the third party claims to the sessions court for determination.

The respondents then filed an appeal to the Court of Appeal against the High Court ruling. - FMT