VenusFX under police investigation in Malaysia
Forex Ponzi schemes in Malaysia might have their days numbered, with news yesterday of police launching an investigation into VenusFX.
For those unfamiliar with the scheme, VenusFX was a Ponzi scheme that promised a 480% ROI in 80 days.
Reader comments on our BehindMLM VenusFX review suggest the scheme collapsed around August.
The Sun Daily report that police in Kuala Lumpur began a preliminary investigation after receiving “several dozen complaints” from VenusFX victims.
Hundreds of investors claimed to have lost between RM1,000 and several million ringgit after being promised high returns of up to 30% a month.
The Commercial Crimes Investigations Department is investigating the matter, with chief ACP Mohd Luthfi Ismail Abdullah confirming “investigations are in progress”.
It is learnt that police are in the midst of compiling dozens of reports made against VenusFX nationwide and are expected to hold discussions with the federal CCID and Bank Negara soon before a full-scale investigation.
Rather than admit they’ve simply run out of new investor money to pay off existing investors, VenusFX have came up with a cock and bull story about losing money to a “Datuk Seri”.
Datuk Seri told the (VenusFX) directors that (prime minister) Najib and Rosmah (his wife) had approved the scheme. VenusFX deposited RM5 million into the Datuk Seri’s foundation before directing its investors to deposit their investments to the MVEF where another RM2.2 million was paid up.
MIC treasurer-general Datuk S. Vell Paari alleged that eventually VenusFX learnt it had been duped by the Datuk Seri and ceased all dealings with him.
VenusFX demanded the sum of RM7.2 million be returned to it and following a legal demand issued by its lawyers, it managed to recover RM5 million from the Datuk Seri.
Vell Paari said, however, the Datuk Seri is yet to return the RM2.2 million belonging to between 200 and 300 investors.
In response to the Vell’s allegations, MVEF officials Datuk Seri G. Gnanaraja (pix) and his wife, Datuk G.Geethanjali (pix) in a statement denied swindling the affected investors, calling it defamatory.
They said that the sum of RM2.2 million was deposited into the bank account of MVEF without the foundation’s knowledge.
As such, they said that the foundation had decided to hold on to the funds to ensure it is returned to the rightful depositors.
Scammers scamming scammers with approximately 16,000 investors caught in the middle.
Here’s hoping Malaysian police can get to the bottom of it.