The syndicates were headed by a man with a ‘Datuk’ title, it said, referring to the original report which appeared in the China Press.

China Press had reported that the mastermind had claimed that investors could get 50 per cent revenue in seven months.

Investors were told they could buy a share unit at USD2 (RM8) and the company would buy it back from them at USD3 (RM12).

The Datuk also offered a high commission to those who recruited middlemen, according to the China Press report.

One middleman known as Liew Yi Wei, 27, said he convinced a Datin client to buy 120,000 shares and that the Datin and her husband signed an agreement in front of a lawyer and paid RM969,600 for the share purchase.

Liew, who has since lodged a police report, said he received RM27,000 in commission.

Subsequently, the Datin’s husband found out that the “company” was blacklisted for its get-rich-quick scheme and questioned Liew about it, said the report.

Liew said the CEO of the company, who claimed he was a Datuk, gave an assurance that he would buy back the shares but that when the payment was due in July, he gave all kinds of excuses to defer the payment.

Liew claimed the Datuk later refused to pick up his calls or reply to his text messages.