Kuala Lumpur , 29 February 2008
SC charges perpetrator of internet investment scheme-filed civil forfeiture action against another internet investment scam
The Securities Commission (SC) today charged Phazaluddin bin Abu for holding out as a fund manager without licence, through the internet website www.danafutures.com.
Phazaluddin, who is believed to be responsible for the whole internet investment scheme offered by the website, is suspected to have collected up to RM65 million from investors. He was charged under section 15A of the Securities Industry Act 1983.
The charge against Phazaluddin alleged that between 3 January 2007 and 15 June 2007, he had held himself out as a fund manager through the website, without holding a fund manager’s license.
Upon conviction, the accused person is liable under section 15C of the Securities Industry Act 1983 to a fine not exceeding RM1 million or to imprisonment for a term not exceeding 10 years or to both.
A bail sum of RM200,000 was imposed by the Sessions Court on Phazaluddin, with his travel documents to be surrendered to the Court as condition for bail. The case is scheduled to be heard on 3 November 2008.
Phazaluddin was also investigated by the SC for money laundering offences under the Anti Money Laundering and Anti Terrorism Financing Act 2001.
Earlier on 13 February 2008, a civil forfeiture action was filed in court under section 56(1) of the Anti-Money Laundering and Anti-Terrorism Financing Act 2001 arising from SC’s investigation in another internet scam involving Cambridge Capital Trading. The application was filed seeking the forfeiture of RM 2.5 million of illegal proceeds.
SC’s investigation into Cambridge Capital Trading arose as a result of a request for assistance by the Dubai Financial Services Authority and the Australian Securities and Investment Commission.