ASEANEWS HEADLINE-COURTS & CRIME| KUALA LUMPUR: 111 investors sue investment firm, directors for RM20.45mil
The Kuala Lumpur High Court fixed July 6 for further case management after the defendants filed a notice seeking to include AUF MBZ Consortium PLT as a third party.
They had invested the money in the shariah-compliant scheme offered by QEW Group Bhd.
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KUALA LUMPUR:: A group of 111 people has filed a RM20.45 million civil suit in the High Court here against investment company QEW Group Bhd and two of its directors.
The plaintiffs, aged between 28 and 89, are seeking the return of RM20.45 million in investment capital and declarations that directors Iqbal Mohamad and Fairoz Muhammed orchestrated a fraudulent scheme and acted negligently.
They are also seeking RM20.45 million in special damages, RM1 million in exemplary and aggravated damages, general damages to be assessed by the court, and interest at 5% a year until full settlement.
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The suit was filed on April 3 through Messrs Azri & Co.
In February, the company was charged with conspiring with AUF MBZ Consortium PLT to carry out unlicensed trading activities in securities.
According to the statement of claim, the dispute arose between 2022 and 2024 when the defendants aggressively promoted the firm’s Islamic Redeemable Preference Shares-i (RPS-i) investment scheme.
The plaintiffs claimed they were persuaded by representations that the scheme was safe, well-structured and fully shariah-compliant, as well as assurances from the directors that their capital was protected and that they would receive regular monthly dividends.
Problems allegedly surfaced when dividend payments became irregular, were delayed or reduced, before eventually ceasing altogether without any “reasonable financial explanation”.
“When questioned, the defendants claimed that dividends were subject to the company’s sole and absolute discretion, an excuse that had never been disclosed when they were first persuaded to invest,” the statement read.
In August 2024, the company announced an exit plan allowing investors to redeem their RPS-i shares at RM1 per unit.
Two months later, it issued an internal memorandum setting out a three-phase repayment schedule, beginning on Jan 14, 2025.
However, the plaintiffs alleged that the company failed to return their capital despite these resolutions.
“The plaintiffs contend that the company was used as a vehicle for a coordinated conspiracy to defraud,” the statement read.
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Acting for the plaintiffs, lawyer Hizri Hasshan told FMT that judicial commissioner Asmadi Hussin fixed July 6 for further case management yesterday after the defendants filed a notice seeking to include AUF MBZ as a third party.
Lawyer Ahnaf Zaimi appeared for the defendants.
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