Businessman loses EPF savings, borrowings to IPO scam

The Star

A businessman, who was hoping that his stock investments would pay off, is now in financial ruin after falling victim to an overseas online scam.   WATCH MORE: https://thestartv.com/c/news SUBSCRIBE: https://cutt.ly/TheStar LIKE: https://fb.com/TheStarOnline

Transcript

00:00How did you come to know about this platform?

00:02Okay, I received a WhatsApp message showing lucrative investment return on this platform.

00:16So initially, when you register to them, they get an assistant to guide you on what to do.

00:29I started the group since September 2024.

00:33So in between, they teach you about investments, stocks, the graph, the trend, and all that.

00:42Okay, without taking any money.

00:44So in between, in September, they will tell you to buy stocks using your own account from your own platform.

00:58Your own reminder, or your online, like public bank, Maybank, or whatever.

01:06So, they give you a discount.

01:11You just buy using your own funds and your own account and buy.

01:18So, of course, it was also lucrative.

01:22I did make money, but I did not lose money.

01:26So that gave you the confidence after two months?

01:29Yes.

01:30So that's when you initially invested?

01:32$5,000.

01:33$5,000, okay.

01:34And I add on another $5,000.

01:36But you managed to make your profit, it went up by?

01:41By another $2,000 or $3,000.

01:44So I tried to withdraw $7,000 from there. It was successful.

01:48You got the money within?

01:50Within less than one day.

01:53Okay.

01:55So that gave you the confidence?

01:57Yes.

01:58That money came into your account?

02:00Correct, bank account.

02:02So after that, you made a total of how many transactions?

02:06I deposited about 15 to 20 transactions.

02:14Okay. Totalling?

02:16Totalling $1.38 million.

02:20In fact, in December, there was an IPO on A-Shares.

02:26Okay.

02:27A-Shares in China, Shanghai.

02:30So I subscribed to A-Shares.

02:35I got a winning ticket.

02:37So I had to pay.

02:39Initially, it was RM900,000.

02:45So with my previous winning, I add on to my additional investment.

02:53I managed to pay up the RM900,000.

03:01So I sold the thing.

03:07I made about RM2 million.

03:17But I couldn't withdraw.

03:19That was on 17th of December.

03:25Couldn't withdraw.

03:27He said, you have one more IPO.

03:31And the IPO cost RM4 million.

03:39So I have to raise funds to fulfill the subscription for this IPO.

03:47Okay.

03:48The IPO, after listing, it really went up.

03:52The first one, it went up.

03:58That means I put in RM20,000.

04:04The IPO is about RM20,000.

04:07It went up to RM60,000.

04:09The last one, my winning units, my ticket was a big amount.

04:17Okay.

04:20RM2,404.

04:27So I have to pay up RM4 million.

04:32With my balance amount, that amount has to go to paying the subscription.

04:41So the balance amount converted to ringgit, RM800,000.

04:49So I managed to complete the subscription on Monday, 6th of January.

04:56Okay.

04:58This is when the 1.38 million?

05:01Everything in order.

05:03Then, Monday when I completed, Tuesday he asked me to sell the shares.

05:13Which I gave about 80% to 90% profit.

05:19So RM20,000, I sold it at RM34,000.

05:26So the total winning RM7 million after conversion to Malaysian ringgit is RM4.7 million.

05:41Okay.

05:42So I withdraw half of it, RM2.7.

05:47Yesterday?

05:48Yesterday, Tuesday.

05:51But it appears under review.

05:56So I was told by the manager, he says that you have to pay RM660,000 profit sharing.

06:09So I said, since I got winning, can I deduct? He said, cannot.

06:13You have to pay the RM660,000 before this thing will transfer to you.

06:20So I'm afraid that this RM660,000, if I pay, they will freeze my account and they will not release.

06:30They say, yes, I will release, but I'm doubtful.

06:33I did suggest them to, why not you release a portion of RM700,000 to pay your RM600 profit sharing.

06:42So I can, but after that, they are silenced.

06:48And when did you come to know that you started suspecting something was wrong?

06:53When?

06:54You met a friend, is it?

06:55I met a friend to borrow this, to end this, everything, to complete this.

07:04So my friend told me, look, this is a scam.

07:08So what is your advice and what do you hope?

07:11I would advise that anyone who asks you to bank in money, the bank account number,

07:20check with, there's a portal to check the account, whether it's legitimate or not.

07:27The semi-annual, is it?

07:28Yeah, semi-annual, before you do any deposit.

07:32So you were shocked that four accounts that you transferred to had so many police reports?

07:37Yes, two of them have police reports.

07:40So now what do you hope from the police and authorities, like bankers?

07:45To be able to recover this amount of money.

07:49In fact, the last SM, I told you, I don't want your profit, you give me back my deposit.

07:55So they are not?

07:57They are not responding.

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