Thursday, October 11, 2012

Raids on gold trading firms to protect investors, say authorities

Source from (The Sun Daily): http://www.thesundaily.my/news/512569

Published: October 11, 2012
sunbiz@thesundaily.com

PETALING JAYA (Oct 10, 2012): The Attorney General's Chambers, the Royal Malaysia Police and Bank Negara Malaysia said the recent raids against four companies suspected of operating illegal investment schemes using gold, were conducted in the interest of protecting the investors as well as the public at large from falling victim to illegal schemes.

In a joint statement today, the authorities said the joint raids were done on Genneva Malaysia Sdn Bhd, Pageantry Gold Bhd, Caesar Gold Sdn Bhd and Worldwide Far East Bhd after surveillance and examination were conducted on these companies, which found that "they are operating schemes that are believed to be not sustainable to provide the promised high monthly returns, nor would they be able to provide the buy back guarantee of gold".

"Such schemes are not sustainable because the returns promised are not funded through gold trading, but from the monies invested into such schemes. The investigations have also revealed that the amount of assets and monies held by these companies do not commensurate with the amount collected from their investors," said the authorities.

"Prior to the joint raids, it has been noticed that these companies have delayed in returning gold or money to the investors within the stipulated time as promised. Such signs are early warning indications prior to the collapse of such schemes that would result in significant losses to investors," they added.

Investors and gold traders of the four affected gold trading firms had cried foul over the raids by the authorities, saying their life time savings have been affected. They had also voiced concerns over the state of the gold bars that had been seized during the raids.

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