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BUSINESS

Court orders RBTR, five others to pay over RM13 mln in restitution -- SC

05/04/2021 06:43 PM

KUALA LUMPUR, April 5 -- The Kuala Lumpur High Court had ordered RBTR Asset Management Bhd and five other defendants to pay RM13.35 million in restitution for their role in the Euro Deposit Investment (EDI) scheme on March 30, 2021, the Securities Commission Malaysia (SC) said.

In a statement today, the SC said the court ordered the defendants’ assets to be traced and paid to the SC to compensate the EDI scheme investors.

It said the court has also declared that RBTR -- formerly an SC-licensed fund manager before its Capital Markets Services Licence (CMSL) was revoked on May 17, 2012 -- had breached its obligations and/or duties under the fund manager guidelines and failed to conduct due diligence to safeguard investor monies.

SC said the court order was the result of a civil suit filed by the SC against RBTR and five other defendants, namely New Zealand’s Locke Guarantee Trust Ltd (LGT), British Virgin Island’s Locke Capital Investments Ltd (LCI), Isaac Paul Ratnam, Joseph Lee Chee Hock and Nicholas Chan Weng Sung in 2009.

It said the civil suit was filed following the SC’s investigations on the EDI scheme in August 2009 after receiving complaints from investors.

“A total of 106 investors were misled into participating in the scheme which promised, among others, an annual return of eight per cent to be paid upon maturity,” it said.

It said investors had been led to believe that their investments were deposited into an “AAA” rated European bank with full capital and income protection.

“A total of RM13.35 million in particular investments maturing in February 2009 to May 2009 was unpaid,” it said.

It said the EDI scheme was marketed by RBTR together with LGT and LCI, both of which held themselves as fund managers in Malaysia in association with RBTR.

It added that Chan and Lee were directors of LGT and LCI, while Isaac Ratnam was an individual associated with the operations of the two companies.

-- BERNAMA

 

 


 

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