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Investors still in shock after gold trading firm raids in M'sia, S'pore

Publication Date : 03-10-2012


Investors of gold trading scheme Genneva Malaysia Sdn Bhd were still in shock a day after an investigative raid on the company.

Anxious and confused over the scope of investigations, hundreds of them converged at the company's headquarters in Jalan Kuchai Maju 6, in Petaling Jaya, and its office in Penang, demanding answers.

However, Malaysian central bank – Bank Negara Malaysia – spokesman Lee Poh Fong said a statement would only be issued after investigations had concluded.

“There is nothing wrong with gold trading but we want investors to be careful against those promising high returns,” she said, referring to a previous press release issued on September 5.

According to the Domestic Trade, Cooperatives and Consumerism Affairs Ministry's enforcement division, one of the four government agencies involved in the raid of the firm, the action was in response to numerous complaints by investors.

Division head Mohd Roslan Mahayudin said besides Bank Negara, the lead agency heading the operations and investigations, the ministry had also been receiving complaints over the past four months from people who had allegedly lost their investments.

“The decision to raid Genneva was carried out by a task force led by BNM to probe get-rich-quick schemes,” he said.

Sources familiar with the investigations said the company was being investigated for offences under money-laundering and deposit-taking laws.

Singapore's Commercial Affairs Department conducted a similar swoop on Genneva Pte Ltd's Orchard Towers offices in the city-state on Monday.

Genneva has ceased all transactions pending the outcome of the investigations.

In a public statement posted on its Facebook page and website, the firm urged agents and customers to stay calm while it settled the issues with the authorities.

In George Town, a senior official of the company claimed that Genneva had not violated any laws.

The official, who wished to remain unnamed, said the firm wrote to the Finance Ministry earlier this year for guidance on gold trading and had also given its views on the business.

He said the ministry replied that a meeting would be arranged to listen to Genneva's views and suggestions on gold trading.

“So far, there has been no feedback on when the meeting will be held. We thank our customers for supporting us. We are purely a gold trading company. We will work hard to resolve this matter as quickly as possible.

“We urge our consultants and customers to remain calm for the time being,” added the official.


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