After JJPTR, Richway causes investors in China to see red

richway-global-venturePETALING JAYA: Scores of investors in China are hopping mad that a Malaysia-based investment scheme they involved themselves in has tanked, leaving them in debt.

The Sun Daily, quoting a headline in the China Press that read, “THREE thousand Chinese citizens are after Malaysian farmer”, said the man behind the investment scheme called Richway Global Venture has now gone missing.

Touted as an agriculture-cum-Forex trading outfit, the “Malaysian farmer” in question is Alex Wong, the founder of Richway, who launched the scheme in China early this year after it was established in Malaysia late last year, the daily said.

“You brought us from heaven to hell within a short period of three months. Our only wish now is for you, Alex Wong, to go to jail,” the daily’s report today quoted angry investors in China as saying in social media application WeChat.

Wong’s scheme was an overnight success however, attracting some 20 million renminbi (about RM12 million) in investments after promising investors a monthly interest of 30%.

Many however said they only received interest payments for the first two months and no further payments thereafter.

Speaking to the daily on Monday via WeChat, several investors said the “farmer” could not be contacted, leading them to believe they had been conned.

Some opened accounts of between US$1,000 (RMB6,899) and US$3,200 (RMB22,079), with the more ambitious among them, opening multiple accounts.

“Many of us have made maximum cash advances from our credit cards (for our investment) and we are now unable to service our debts,” the news report quoted the investors as saying.

The scheme has a slogan saying, “Richway, the way to grow your wealth”, and many investors believed their funds were used to generate income from agricultural activities and Forex trading.

None who spoke to the daily had ever met Wong in person as they dealt instead with a Chinese agent appointed by the Malaysian, who like Wong, was missing as well.

“We are now prepared for the worst. We want to gather more investors to file a joint complaint to the Chinese embassy in Malaysia as well as Consulate General of Malaysia in Guangzhou,” the daily quoted an investor as saying.

Over in Malaysia, investors of the JJPTR investment scheme were also left in a similar quandary recently after the company’s founder Johnson Lee, 28, claimed its funds were siphoned off by “hackers”, resulting in losses of over US$50 million (RM217 million) although unverified claims put the losses at more than US$400 million (RM1.7 billion).

Lee has since been arrested by the police.

 

Police arrest JJPTR founder Johnson Lee