SC Cautions Public On Investment Scams Using Fake Information Memorandums

PUTRAJAYA, Sept 6 (Bernama) -- The Securities Commission  Malaysia (SC) today cautioned the public on a new investment scam which uses fake Information Memorandums (IM)  to procure investment from the public, falsely claiming that it has been lodged with or endorsed by the SC.

It said that under the Capital Markets and Services Act 2007 (CMSA), unlisted public companies issuing IMs to raise funds are required to lodge them with the SC within seven days of issuance to potential investors.

However, the lodgement of an IM does not constitute an endorsement by the SC.

“In this case, the SC found that the company represented to investors that it has issued an IM purportedly lodged with the SC, thus misleading investors and lending credibility to its investment scheme,” it said in a statement today.

The SC confirms that the company did not lodge any IM with the SC and suspects that it is part of an investment scam.

Following that, it said Immediate action was taken including filing a police report and adding the company to SC’s Investor Alert List at https://www.sc.com.my/investor-alert-list.

The SC views the matter seriously as such an act may lead the public to believe that the SC endorses and approves the investment product.

It advised the public to verify any claims using the name of the SC or any of its officers and any suspicious activities or investment information to the SC.

“This will help protect investors from potential risks and assist them in making informed investment decisions,”, it said, adding that the public can verify investment offers through the SC Investment Checker at www.sc.com.my/investment-checker.

For more enquiries, the SC Consumer and Investor office can be reached at  +603 6204 8999 or through email at aduan@seccom.com.my.

-- BERNAMA