KUALA LUMPUR: A prominent couple has been linked to police investigations into a foreign currency trading company over alleged illegal deposit-taking amounting to tens of millions of ringgit.
It is learnt that police began probing VenusFX and companies linked to it, after receiving several dozen reports from investors who alleged they lost between RM1,000 and several million ringgit after being promised high returns of up to 30% a month.
Checks by theSun found VenusFX was a company registered in New Zealand with a virtual address.
Since its inception a year ago, the company had allegedly been operating its business illegally without a banking and financial services licence from Bank Negara. The company is said to be run by two Malaysians in their late 20s.
Kuala Lumpur police commercial crimes investigations department (CCID) chief ACP Mohd Luthfi Ismail Abdullah told theSun that investigations have begun.
The newspaper reported that police were compiling dozens of reports made against VenusFX and will hold discussions with the federal CCID and Bank Negara as the business model of the company was similar to the pyramid system associated with Ponzi schemes.
The prominent couple, said to be a Datuk Seri and a Datuk, got involved in this case when they made a business proposition in June, to the owners of VenusFX offering to legalise their operations by obtaining a banking licence through their “connections” in Putrajaya.
MIC treasurer-general S Vell Paari shed light on this prominent couple when in a press conference with more than 100 investors in Petaling Jaya last weekend, he alleged the duo had been name-dropping, claiming they were close to top government leaders and officials in “high places”, including those at the Finance Ministry (MoF).
“The couple met the directors of VenusFX and told them to deposit RM50 million into the account of their foundation as it was to show the MoF the company’s turnover in order to be granted a banking licence.
Vell Paari alleged that eventually VenusFX learnt it had been duped by the Datuk Seri and stopped all dealings with him. The company demanded the sum of RM7.2 million be returned to it and following a legal demand issued by its lawyers, managed to recover RM5 million from the Datuk Seri.
The couple however denied swindling the affected investors, calling Vell Paari’s allegations “defamatory”.
They said the remaining RM2.2 million was deposited into a bank account to ensure it was returned to the rightful depositors.