Justice Arief Emran Arifin said the plaintiffs had proven that Chan Cheh Shin’s operation was illegal as he had not obtained approval from the Securities Commission of Malaysia (SC) to collect funds for investment purposes.

He ordered Chan to return whatever money he had collected from the investors. The investments totalled about RM28 million.

Arief, who delivered his ruling online, also ordered Chan to pay interest on the sum collected from the plaintiffs at 5% per annum from the date of filing of the case until the judgment sum is settled.

In the statement of claim, the investors said Chan, who had credentials as a leading banker specialising in investment and financial matters, persuaded them to invest in various investment products, some overseas, with promises of multiple returns.

They said Chan convinced them that he would prudently manage the investment schemes and that if the investments failed, he would indemnify them.

Chan had started a company known as Fulda Malaysia Bhd of which he was a director and had introduced several investment products through many seminars and roadshows.

From 2016 onwards, the investors paid the money to Fulda and another Singapore-based company known as Palau Capital Ltd, where Chan was also a director.

However, the investors did not receive returns from the purported investment. They filed the suit two years ago to recover their capital.

During the trial, it was brought to the court’s attention that Chan did not obtain the SC’s approval to collect funds for investment purposes and that the entire transaction of collecting the money and promising attractive returns was illegal.

Lawyers M Manian, R Gajelan and May Soh May appeared for the investors while Ravi Nekoo and Sarah Anthony acted for Chan.

Ravi said he had instructions to file an appeal.