MORE THAN 200 INVESTORS CLAIM RM80 MLN LOSSES IN ISLAMIC SHARES SCHEME

KUALA LUMPUR, May 13 (Bernama) – A total of 232 individuals claim combined losses of RM80 million after allegedly falling victim to a fraudulent investment scheme centred around Islamic Redeemable Preference Shares (IRPS).

According to Malaysia International Humanitarian Organisation (MHO) secretary Datuk Hishamuddin Hashim, the scheme's managers promised high dividends to the investors, but the scheme failed to deliver returns.

Speaking to reporters outside the Securities Commission Malaysia (SC) headquarters, he noted that the scheme gained credibility through the involvement of prominent figures who held positions within the firms, leading many to believe the investment was legitimate.

Hishamuddin said formal complaints have now been submitted to the SC, with MHO calling for a full investigation.

Among the complainants is Lutfi Daud, 60, a retired airline employee who said he lost RM250,000, the entirety of his voluntary separation scheme (VSS) payout intended for his retirement. After receiving initial returns, Lutfi said he invested in 2022 and increased his stake in 2024.

“The returns were steady, so I asked my wife to join. But when the payouts started to stall, I got worried. All of my VSS money was tied up,” he said.

He added that the financial hit has taken an emotional toll, as some friends and family have begun to look down on him.

“It’s had a real impact, especially for a retiree like me who still has a child in school,” he said.

Another investor, Abdullah Faizi, 30, who runs a kindergarten business, said he lost RM400,000. The losses, he said, had disrupted both his business and personal plans.

“The first dividend came through, but the second was delayed. Eventually, they blamed financial issues,” he said.

He added that the scheme promised returns of up to 18 per cent every three months and was marketed with what appeared to be a polished investment portfolio backed by high-profile individuals.

-- BERNAMA