Regulators seized 142kg gold, RM101mil

PETALING JAYA (Nov 6, 2012): Regulators have seized 142.7kg of gold worth about RM29.8 million, and cash and monies in bank accounts amounting to RM101.92 million from the recent raids on four gold trading companies.

Source from (The Sun Daily): http://www.thesundaily.my/news/533848
Published: November 06, 2012

In October this year, Bank Negara Malaysia in cooperation with the police, Ministry of Domestic Trade, Cooperative and Consumerism and the Companies Commission of Malaysia (SSM) raided Genneva Malaysia Sdn Bhd, Pageantry Gold Bhd, Caesar Gold Sdn Bhd and Worldwide Far East Bhd.

In a joint statement yesterday, the four regulators said seized records revealed that a substantial number of investors had paid but had yet to receive any gold, prior to the raids.
The period of non-delivery had, in some cases, exceeded five months.

As such, a dedicated team has been established to track the movement of monies and other assets, while international accounting firms have been appointed on a full time basis to assist in the investigations.

“The scope of the investigation is international. In this connection, the enforcement agencies are actively collaborating with their foreign counterparts to obtain evidence in several other jurisdictions to assist in the investigations,” they said.

The regulators said investigations also revealed that several of these companies have poor record keeping and failed to maintain accurate record of all business and financial transactions.

These companies maintained different versions of financial records for different purposes, and also failed to submit audited accounts with SSM for the last few years, as required by law.

“For businesses, especially those that involve large numbers of clients and monies, it is imperative to maintain accurate records of all business transactions to avoid financial mismanagement or misrepresentation of the true financial situation of the company,” the regulators said.

“The enforcement agencies are aware of the plight facing affected investors and every effort is being made to determine the whereabouts of any monies and assets of the companies.”