19 May, 2008
Woman amassed RM70m, say police
2008/05/18
CHENNAI: A Malaysian businesswoman arrested by Chennai police admitted to amassing nearly RM70 million by operating a multi-level marketing company in the last three years.
The 45-year-old woman, who is the managing director of the company, and seven of her staff were detained by police on May 4 after several investors lodged reports of being deceived into investing in the company and did not receive their returns as promised.
Acting on the reports, police arrested the woman for criminal breach of trust and seized 81kg of gold coins from various premises in south India.
Chennai’s Deputy Commissioner of Police G. Sampath Kumar said investigations were conducted in several major cities like Madurai and Bangalore, where the company was reported to have recruited members for its scheme.
“We came to know the woman had bought a beach resort in Chennai and an office building in Madurai and other places.
“She had secured around 250 crore rupees (RM20 million) worth of properties, gold and silver coins.
“She admitted she had earned 936 crore rupees in the last three years by committing fraud,” he told Bernama when contacted.
So far, 12,800 investors from Tamil Nadu and Andhra Pradesh had lodged reports against the company.
The court rejected the woman’s bail petition yesterday.
She will remain in custody until the court hearing later this month. - Bernama
