They were believed to have impersonated police officers from Bukit Aman.
Besides bullets, police also seized handcuffs, police authority cards, police boots, shirts with the word police emblazoned on them, vests and cellphones from the suspects.
Northeast District Police Chief ACP Mior Faridalathrash Wahid said the ex-cop, aged 57, was arrested in George Town yesterday.
He said the former policeman’s role in the racket was not known but he and the group were suspected to have targeted victims who were wealthy and had prior criminal records.
“We have applied for a remand order for the man this morning.
“We suspect the man was involved in an incident where a moneylender was extorted by three men claiming to be cops from Bukit Aman in Pulau Tikus last week,” Mior told a press conference today.
According to Mior, the 53-year-old victim was approached at a car park near Midlands, Pulau Tikus, on Oct 25 by the three “policemen” who handcuffed him.
“The victim was then taken for a ride in their car on the ruse of ‘we are taking you to Bukit Aman’.
“On the way, the suspects demanded RM30,000 for his release.
“Near Kuala Kangsar, Perak, the frightened victim agreed to pay his captors.
“They then made a detour and returned to the victim’s office in Penang, where the victim paid RM20,000 to the suspects.
“The victim was then released at the same spot he was first handcuffed.”
Mior said Selangor police then arrested five men, aged between 28 and 58, in the Klang Valley, who they believed were part of the racket.
Two of the men were found to have previously committed house break-ins and thefts.
Another suspect, a former police reservist, was found with 30 .38 bullets at his home.
The case will be investigated for extortion, impersonation of a public servant, and illegal possession of ammunition under the Penal Code and the Firearms Act 1960.