Thursday, September 27, 2007

2 charged with RM200m Net scam

Malaysia Boleh! What about the Monetary Authority of Singapore?

The New Straits Times Online.......
By A. Hafiz Yatim

27 September, 2007

KUALA LUMPUR: Bank Negara scored a first when it charged two directors with operating an Internet investment scam which saw them allegedly raking in more than RM200 million in just over a year. The directors of the Internet-based companies - PicPay Dot Com and New Mark Business Centre - became the first to be charged with collecting deposits without a licence in a get-rich-quick scheme.

The two - Briton Bryan John Marsden, 59, and his Malaysian wife Phan Sew Ken, 55 - are accused of duping thousands of investors in the scam.

Most of their victims are said to be from the United States, Australia and Britain while local investors are said to be fewer than 20.

The locals are believed to have invested RM650,000.

Marsden was charged with four counts of taking deposits without a licence while his wife was charged with two similar counts. All charges are under the Banking and Financial Institutions Act 1989.

Marsden, a former project manager of the Kuala Lumpur International Airport and Kuala Lumpur City Centre project, claimed trial to collecting deposits while he was a director of PicPay Dot Com and New Mark Business Centre.

Both companies were also charged with the same offence and Marsden represented them both.

Phan, a former teacher, also claimed trial to collecting deposits while being a director of both the companies.

The alleged offences occurred at PT 7323 Second floor, Jalan BBN1/2E, Bandar Baru Nilai, Seremban, between April 10, 2004, and July 4, 2005.

The couple face a maximum fine of RM10 million or 10 years’ jail, or both, for each charge if convicted.

The couple was produced at the Sessions Court here and in Seremban in August last year, where Marsden claimed trial to 51 counts of money laundering, while Phan claimed trial to 46 counts.

Marsden and Phan are being remanded at the Seremban and Kajang prisons respectively, after they failed to post bail of RM900,000 each last year.

Bank Negara deputy public prosecutor Fahmi Abdul Moin applied for bail at RM500,000 each with one surety for all six charges.

He also applied that the couple surrender their passports.

Their counsel, J. Kuldeep Kumar, told the court that their assets worth RM8 million had been frozen by Bank Negara as a result of the money-laundering cases. “I would like to apply that the frozen assets be used as bail.”

Fahmi said frozen assets could not be used as a condition to post bail.

Judge Rozana Ali Yusoff fixed bail at RM400,000 with one surety for Marsden, and RM300,000 with one surety for Phan.

She also ordered that both of them surrender their passports, and fixed three days beginning May 6 for hearing.

In April, Deputy Prime Minister Datuk Seri Najib Razak had said the government was studying laws to put a stop to Internet investment scams .

Najib said people must be aware that they could lose money in such schemes.

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