Police detain another ‘Tan Sri' businessman in Penang linked to RM3.5b MBI Ponzi scheme, suspected proxy to mastermind
The suspect, the second person to bear a 'Tan Sri' honorific title, was arrested in Penang at about 2am, New Straits Times reported today, citing an anonymous source familiar with the investigation.
Commercial Crime Investigation Department acting director Datuk Muhammed Hasbullah Ali confirmed the arrest, stating that investigations are ongoing.
The 53-year-old is believed to have acted as a proxy for the scheme's mastermind, assisting in laundering illicit proceeds.
'The man had just returned to Malaysia,' the unnamed source told the newspaper, adding that police will seek a remand order against him.
The arrest is part of 'Op Northern Star,' an operation launched on April 18 targeting individuals involved in the MBI scheme.
Earlier phases of the operation led to the arrest of five people, including another 'Tan Sri' and a 'Datuk Seri,' for their alleged roles in the fraudulent activities.
To date, authorities have seized and frozen assets worth RM3.51 billion, including a hotel, durian farms, luxury vehicles, watches, and bank accounts.
The MBI Group International, founded by Malaysian businessman Tedy Teow Wooi Huat, operated a pyramid scheme disguised as a digital coin trading platform called MFC, promoting a virtual currency known as M-Coin.
Launched in Penang in 2012, the scheme expanded to China, Taiwan, Japan, and New Zealand.
By 2017, Malaysian authorities, led by Bank Negara Malaysia, raided MBI's offices, leading to the freezing of hundreds of bank accounts.
The following year, the scheme collapsed, leaving thousands of investors with significant losses.
Teow, often referred to as 'Jho Low 2' due to similarities with the 1MDB scandal figure, was extradited from Thailand to China in August 2024.
He is accused of defrauding over 10 million investors across Asia, with Chinese authorities estimating losses exceeding 100 billion yuan (approximately RM65 billion).
Investigations into the MBI scheme have been ongoing for over seven years.
Authorities continue to identify and apprehend individuals connected to the fraudulent operations, aiming to recover assets and provide justice to the victims.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Sun
32 minutes ago
- The Sun
‘Nation capable of thwarting espionage'
PETALING JAYA: Malaysia possesses strong intelligence capabilities and a comprehensive security framework to counter espionage threats posed by foreign elements, said Home Minister Datuk Seri Saifuddin Nasution Ismail in Parliament yesterday. He said espionage is a global threat affecting all nations, and Malaysia is no exception. 'We classify espionage as a serious national security issue that must be addressed comprehensively,' he said in response to a question from Lubok Antu MP Roy Angau Gingkoi on preventive and intervention measures taken by the government. Saifuddin Nasution said espionage typically involves stealing sensitive political, military or economic information without authorisation. He said the modus operandi often begins with identifying targets, gathering data for profiling and understanding an organisation's structure. He added that perpetrators may act through insiders or enter Malaysia as tourists. 'Some insiders are recruited with promises of rewards, others coerced through threats and some influenced by ideology.' He highlighted the growing use of cyber espionage, with intruders gaining covert access to information systems via phishing, malware or spyware. He said the stolen data is then transmitted to handlers through the dark web or encrypted channels. Saifuddin Nasution outlined a three-pronged national response to combat such threats – prevention, detection and enforcement. 'Prevention measures include continuous monitoring of watchlists and blacklists as well as the strengthening of security vetting procedures, especially for foreigners working in Malaysia. 'On detection, intelligence agencies are enhancing expertise and coordinating information security programmes to safeguard critical data. 'Cooperation with international bodies such as Interpol and Aseanapol also forms part of Malaysia's strategy.' He cited the 2022 arrest of a Malaysian woman in her 30s who had been recruited by Israeli intelligence agency Mossad. He said her mission was to kidnap two Palestinian men, but police successfully rescued them and detained her. His remarks came amid renewed scrutiny of Malaysia's security measures following the Aug 6 arrest of two Chinese nationals for allegedly trespassing by flying drones into a restricted area of the Defence Ministry headquarters.
The Star
33 minutes ago
- The Star
Bilateral parks drive growth
(From fourth left) Zuo, Ng and Prof Ewe with seminar sponsors at the Putrajaya Marriott Hotel. THE 'Two Countries, Twin Parks' (Twin Parks) initiative between Malaysia and China has generated over RM117bil in cumulative gross industrial output since it began in 2012. The Associated Chinese Chambers of Commerce and Industry of Malaysia president Datuk Ng Yih Pyng said the cooperation between the China-Malaysia Qinzhou Industrial Park (CMQIP) in Guangxi, China, and the Malaysia-China Kuantan Industrial Park (MCKIP) in Pahang, had made an impact in various industries. 'Since its opening, MCKIP has gathered various major Chinese enterprises spanning industries such as steel, tyres, papermaking, automobile parts manufacturing and food processing. 'Its cumulative gross industrial output had surpassed 100bil yuan (RM58.8bil) by last December. 'Meanwhile, the first phase of CMQIP has secured 345 project agreements, with a gross industrial output of 106bil yuan (RM62.3bil) and a total foreign trade volume of 45.1bil yuan (RM26.5bil),' he said. He was speaking in Putrajaya at the eighth seminar on the Twin Parks cooperation. The 1,511ha CMQIP's first phase is designed for apartments, industries, businesses and office buildings, according to the Malaysia-China Business Council's website. It also includes a 787ha start-up district that started operating in August 2011. Ng said there was still room for improvement in attracting foreign investment and encouraging greater participation of Malaysian businesses. He suggested an inter-park coordination mechanism be set up to speed up the project implementation while bringing in enterprises with high added value. 'Investments in technological innovation as well as research and development also need to be increased. 'We should be more active in attracting international investments by leveraging opportunities like the visa exemption. 'Specialised teams should also be formed to attract high-quality small and medium enterprises from overseas as well as more Malaysian companies.' He also proposed projects that integrated new trends such as automation, digitalisation and green technology. 'We can turn these projects into models for others to learn from. 'We need to improve the overall institutional and business environment of the parks,' he said, noting that they could learn from the Suzhou Industrial Park in Jiangsu, China. 'This can create a more efficient, transparent and convenient investment environment,' Ng added. The seminar was jointly organised by the two industrial parks, along with Universiti Tunku Abdul Rahman (UTAR), China-Malaysia Qinzhou Industrial Park (Guangxi) Investment Holding Group Co Ltd and Guangxi Minzu University. Also present were UTAR president Prof Datuk Dr Ewe Hong Tat and CMQIP deputy director Zuo Kongtian. Prof Ewe said the seminar's theme of 'Fostering Innovation for a Shared Future' was timely in view of the rapidly changing global economic landscape. 'This rapid evolution is shaped by technological advancements, sustainability regulations and shifting market dynamics. 'It is through collaborative innovation that we can harness opportunities, address shared challenges as well as build a prosperous future,' he said. The one-day event also saw participants engaging in a forum titled 'Collaborative Innovation: Building a Shared Future in a Changing World' and various presentations by experts.
The Star
an hour ago
- The Star
Causeway crackdown scares touts
Crossing the border: People seen boarding a Malaysian-registered taxi, which is only allowed to pick up and send passengers to Singapore's Ban San Street taxi stand. — THOMAS YONG/The Star JOHOR BARU: The blitz on illegal transport services on both sides of the Causeway has spooked touts who had been earning good money offering unauthorised ride-hailing services between Johor Baru and Singapore. These touts, who operate using luxury multi-purpose vehicles costing more than RM500,000 each, are believed to earn between S$500 (RM1,650) and S$1,000 (RM3,300) each day. But since the crackdown by Singapore's Land Transport Authority (LTA) from Aug 5, these touts, who would usually hang around the Larkin Sentral Terminal canvassing for passengers, have gone into hiding. The Singaporean operation had targeted Malaysian-registered private vehicles. Malaysia's Road Transport Department (JPJ) started a similar operation on Singaporean vehicles, beginning Aug 9. Such operations are good news for licensed Malaysian cross-border taxi service drivers such as Jasmani Yasmi, 51. He hopes the LTA will continue with the action against the touts. Malaysian and Singaporean licensed taxi service drivers have been complaining about the touting problem for years, he said. Jasmani, who has been driving the Johor Baru-Singapore taxi route for 15 years, claimed that no strict action was taken by the authorities against these illegal operators. 'The authorities should also fine passengers of the illegal ride-hailing for using the service despite knowing it is not licensed,' he added. Presently, Singapore-registered taxis plying the route are allowed to ferry passengers from the Larkin Sentral Terminal to other parts of Singapore. On the other hand, Malaysian taxis are only allowed to carry passengers from the terminal to the Ban San Street taxi stand in Singapore, near the Queen Street Bus Terminal. Another driver Rosli Ali, 60, said more passengers have been using the licensed cross-border service following the crackdown. 'Previously, passengers, especially Singaporeans, preferred the illegal ride-hailing to go back to Singapore,'' he said. Rosli said the illegal operators would use MPVs with six to 11 seats, making it popular for families or groups, unlike licensed cross-border taxis using sedans. Prior to the crackdown, he said Malaysian touts could be seen at the Ban San Street taxi stand looking for passengers to Johor Baru. Meanwhile, a Wisma Putra official urged all Malaysian registered vehicles entering Singapore to adhere to the island republic's road transport regulations to avoid unnecessary issues including the detention of their vehicles. The official said this was particularly important as Singapore authorities were clamping down on illegal ride-hailing services within Singapore and across the border with Malaysia. The official hoped the LTA would carry out a detailed investigation and target the illegal e-hailing operations, and not Malaysians who carpool to work in Singapore using MPVs. He also said it was important for Malaysian vehicles to have the necessary insurance when they drive in Singapore. It was reported that 19 drivers were caught offering illegal ride-hailing services between Johor and Singapore on Aug 5. They were nabbed during a joint-operation by the LTA and the Singapore's Immigration and Checkpoints Authority According to LTA, 136 drivers have been caught providing illegal cross-border passenger transport services since 2022. Their foreign-registered vehicles were impounded.
