In a statement, federal police secretary Noorsiah Saaduddin said a total of 116 reports were received on the illegal kootu scheme which involved RM4,438,300 in losses.
“Through raids and arrests conducted in Kuala Lumpur, Terengganu, Perak and Negeri Sembilan on Jan 27, the police have successfully arrested eight individuals, including the mastermind behind the scheme,” she said.
She said the eight individuals, aged 31 to 37, comprise two men and six women.
She added that among the items seized following the raids were a luxury car, ATM cards, mobile phones, and various documents believed to be used in the scheme.
According to Noorsiah, the case is being investigated under Section 420 of the Penal Code for cheating and the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001 (AMLATFPUAA).
On Friday, FMT reported that an activist had called for the masterminds of illegal kootu schemes to be jailed instead of being let off with a fine.
Hishamuddin Hashim alleged that 30 people had lost more than RM600,000 to a kootu scheme known as the “Sapiza Saving Extra” fund.
He alleged that a woman known as “Sapiza” is believed to have been behind the scheme, in which victims had been cheated of tens of millions of ringgit.
He said his group, the Malaysian International Humanitarian Organisation, had received 60 complaints from victims who included civil servants, professionals and housewives, with their losses ranging from RM7,000 to RM200,000.
Hishamuddin said masterminds of kootu schemes should be investigated under the Penal Code for cheating, which provides for a maximum of 10 years’ jail, whipping and a fine if found guilty.
A kootu scheme, which is also called tontine, involves having a group of people contribute weekly or monthly to a pooled savings, with each member making a bid to collect the pool after the leader has collected the first pool.
Kootu schemes are illegal under the Kootu Funds (Prohibition) Act.
The “Sapiza Saving Extra” kootu scheme, which has been active since 2015, offers “extra” returns of up to 60% to each player, with three different payment plans, starting from RM250.