The Bank of Russia unexpectedly maintained its key interest rate at a record-high 21% , defying analysts’ expectations of another significant hike as inflation remains stubbornly elevated. The decision marks a shift toward a more measured approach in balancing economic growth and price stability. Key Details Inflation Concerns: Annual inflation climbed to 8.9% in November, well above the central bank’s 4% target , with inflation expectations reaching 13.9% in December. Policy Rationale: The central bank cited the significant tightening of monetary conditions after October’s 200-basis point hike as sufficient to resume disinflationary processes. Governor Elvira Nabiullina emphasized avoiding both economic overheating and severe slowdowns. Economic Overheating: Elevated government spending on the war in Ukraine and social programs, coupled with labor shortages and rising wages, have fueled strong domestic demand, exacerbating price pressures...
MBI Group, founded by Tedy Teow Wooi Huat 15 years ago, started as a "members-only" investment program promising high returns. However, it has since been exposed as a money game, allegedly involving fraud and operating as a pyramid scheme.
In November 2021, around 400 Chinese investors filed a class action suit in the Kuala Lumpur High Court, seeking RM170 million from MBI-related companies, Tedy, his associates, and his sons, Teow Chee Chow and Teow Ee Meng. These investors are demanding only the return of their principal investments, excluding dividends and returns promised through MBI’s stock splits.
Initially, the trial was set for October 7, 2024, but it has been postponed with no new date announced yet. The lead plaintiff is represented by K F Ee & Co, while the defendants are represented by Chun Hoo & Partners and Jagjit Ariff & Co.
Tedy faces additional charges in China, where he is accused of defrauding about two million Chinese nationals out of RMB500 billion (over RM300 billion). The investors claim they were lured into purchasing M-Coins, digital tokens marketed as appreciating assets for use in MBI’s ventures. Many investors, like the lead plaintiff, were convinced by MBI’s strong presence in Malaysia and Thailand and were led to believe it was a legitimate multilevel direct selling scheme.
The class action lawsuit not only seeks to recover the RM170 million but also serves as a cautionary tale for those considering high-yield investment schemes. The outcome of the trial could set a precedent for similar cases worldwide.
source: theedgemalaysia
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