KUALA LUMPUR, March 10 (Bernama) -- Bursa Malaysia rebounded to end higher today with the benchmark FBM KLCI reclaiming the 1,700 psychological level, supported by improved global sentiment after US President Donald Trump signalled a potential de-escalation of the Iran conflict, alongside Malaysia’s stronger Industrial Production Index (IPI) data. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) increased 27.51 points, or 1.64 per cent, to 1,701.68 from yesterday’s close of 1,674.17. The benchmark index opened 10.68 points higher at 1,684.85, its lowest point today, and hit a high of 1,703.61 in the late afternoon session. Market breadth was positive, with gainers thumping losers 929 to 382. A total of 361 counters were unchanged, 982 untraded and 19 suspended. Turnover declined to 3.60 billion units worth RM3.75 billion from yesterday’s 5.52 billion units worth RM5.87 billion.
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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