Malaysia SC Alerts Public to New Investment Scams Using Fake Information Memorandum

In an announcement issued today, the Securities Commission Malaysia (SC) alerted the public to a new investment scam that uses a fake Information Memorandum (IM) to solicit investments from the public with the false claim that it has been lodged with or endorsed by the SC.

The SC explained that unlisted public companies issuing IMs to raise funds are required to lodge them with the SC within seven days of issuance to potential investors under the Capital Markets and Services Act 2007 (CMSA). However, the lodgment of an IM does not constitute an endorsement by the SC.

In this case, the SC found that the company had misled investors by representing to them that it had issued an IM purportedly lodged with the SC, thereby lending credibility to its investment scheme. The SC confirmed that the company did not lodge any IM with the SC and suspected that it was part of an investment scam. 

The Malaysian financial regulator has taken immediate action including filing a police report and adding the company to SC’s Investor Alert List, noting that such conduct may give the public the false impression that the investment product is endorsed and approved by the SC.

The SC strongly advised the public to verify any statement using the name of the SC or any of its officials and to report this as well as any suspicious activity or investment information to the SC. This will help protect investors from potential risks and help them make informed investment decisions.