The five individuals received warnings from the SC for their involvement in aiding and abetting Weldrick Consulting Services Sdn Bhd (Company No. 584116-K) and its principal, Wilson Wong Kai Chuen (Hong Kong ID No. 7806 0796 0353), in carrying on a business of dealing in securities without holding the requisite dealer's licence and in contravention of Section 12 of the Securities Industries Act 1983 (Act 280).

The issuance of these warning letters follows an investigation in which Weldrick, which has now ceased operations, procured investors on the pretext of hiring new employees with the intention of soliciting these new recruits to invest, and solicit others to invest, in "Equity Linked Notes" and "Diamond Reserve Deposits" traded on the Internet and purportedly linked to stocks traded on the Hong Kong Stock Market.

It was found that these employees were given "on-the-job training" in respect of the manner in which the securities products were to be traded on the Internet and then were told to leave Weldrick when they failed to purchase the securities or solicit other members of the public to invest in the same.

The whereabouts of Wilson Wong, a Hong Kong citizen with a permanent residency in Ontario, Canada, is still unknown despite efforts in locating him. The SC is working closely with the Hong Kong Securities and Futures Commission (HKSFC) and the Ontario Securities Commission (OSC) on this case.

Members of the public are advised to only deal with licensed entities to ensure that they are accorded the protection provided by the securities laws, and the public should verify with the SC before investing in securities products online as such products may be offered by unlicensed entities illegally.

These illegal entities offer securities products that are linked with the performance of stocks traded in foreign stock exchanges. To attract the investing public, false representations are made that these securities are managed by foreign investment fund companies with strong financial standings.

Further, the investing public should remain vigilant against illegal entities that claim to offer employment opportunities involving the trading of such securities products on the Internet. The intention of these illegal entities is to solicit new employees to purchase the securities products on the Internet.

The public can ascertain the licensing status of an individual or company on the SC website. If in doubt, investors can also contact the Licensing Department of the SC at tel: 03-62048000. Investors are further advised to visit the Malaysian Investor website at www.min.com.my for tips on smart investing.