KUALA LUMPUR, Nov 6 (Bernama) -- Bursa Malaysia closed higher today, buoyed by supportive local economic policies, positive sentiment from strong technology stocks earnings, and a favourable United States (US) market outlook, an analyst said. Add to that, Bank Negara Malaysia’s (BNM) decision to maintain the Overnight Policy Rate (OPR) at 3.0 per cent is poised to encourage domestic spending and investment. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 13.47 points, or 0.83 per cent, to close at its intraday high of 1,634.17, compared to Tuesday’s close of 1,620.70. The benchmark index opened 3.71 points higher at 1,624.41 and subsequently hit a low of 1,623.52 in early trade before trending upwards toward the closing session. Market breadth was positive, with advancers trumping decliners 849 to 352, while 428 counters were unchanged, 765 untraded, and nine suspended. Turnover expanded to 3.39 billion units
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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