111 Investors Sue Investment Firm, Directors Over Failure To Return RM20.5 Mln In Capital

KUALA LUMPUR, June 19 (Bernama) -- A total of 111 investors have filed a suit against an investment company and two of its directors over allegations of failing to return their investment capital amounting to RM20.5 million.

The investors, aged between 28 and 89, filed the suit at the High Court here on April 3 through law firm Messrs Azri & Co, naming QEW Group Berhad and its two directors, Datuk Dr Muhamad Iqbal Mohamad and Mohd Fairoz Muhammed, as the first to third defendants.

According to the statement of claim, the plaintiffs alleged that between 2022 and 2024, they were influenced and encouraged by the defendants to invest in and subscribe to the RPS-i Investment Scheme, which was offered, promoted, marketed and managed by the defendants.

They claimed that, prior to joining the scheme, QEW, through its representatives Muhamad Iqbal and Mohd Fairoz, made material representations regarding the structure of the scheme, the dividend payment mechanism, guarantees of capital preservation, and compliance with Syariah principles.

The plaintiffs alleged that the defendants expressly or impliedly represented that the scheme was well structured, secure, compliant with Syariah principles and capable of generating consistent monthly dividends, while assuring that their investment capital would remain protected.

The plaintiffs said dividend payments were initially made as promised. However, they alleged that QEW subsequently began defaulting on its obligations when the promised dividend payments were delayed, reduced and eventually ceased altogether.

“When questioned over the failure to make dividend payments, the defendants stated that such payments were subject to the company’s absolute discretion, an explanation that was never reasonably disclosed or emphasised as a key risk when the investment was offered,” the plaintiffs alleged.

The plaintiffs are seeking an order for the company to pay them RM20.5 million and a declaration that Muhamad Iqbal and Mohd Fairoz had acted negligently and perpetrated a fraudulent scheme involving their investment capital.

They are also seeking an order for Muhamad Iqbal and Mohd Fairoz, jointly or separately, to indemnify them and pay RM20.5 million in special damages for negligence, misrepresentation and fraudulent conspiracy, in addition to general damages and aggravated and exemplary damages amounting to RM1 million against all the defendants.

Lawyer Dr Hizri Hasshan, who represents all the plaintiffs, confirmed the suit when contacted and said the defendants had filed a notice to include AUF MBZ Consortium PLT as a party to the proceedings. The court has fixed July 6 for case management.

On Feb 20, AUF MBZ and its founder, Datuk Mahadi Badrul Zaman were charged in the Sessions Court here with two counts of carrying on a securities business without a licence.

Muhamad Iqbal, in his capacity as a director of QEW Group Berhad, was also charged with abetting AUF MBZ in unlicensed securities transactions.

Meanwhile, lawyer Ahmad Ahnaf Zaimi, who represents all the defendants, confirmed when contacted that they had received the statement of claim and had filed their statement of defence on May 21.

-- BERNAMA