Acting Kota Setar police chief Syed Basri Syed Ali said the 57-year-old man was arrested when he appeared at the Kota Setar police headquarters to give his statement at about 4.30pm yesterday.

“The modus operandi of the company involved investments based on property development as well as asset and liability management. It claimed to have 10 projects carried out under the company.

“However, checks showed that the company does not have any permission or approval from Bank Negara Malaysia,” he said here.

Syed Basri said police were investigating the case under Section 420 of the Penal Code for committing fraud.

Bernama reported on Nov 30 that 80 victims of an alleged fraud involving an investment scheme had urged the police to take action against an investment company, previously based in Kedah, for cheating them of over RM11 million in total.

Malaysia International Humanitarian Organisation secretary-general Hishamuddin Hashim was reported to have said that all the victims, mostly from Johor, Perlis and Kedah, had lodged police reports since March this year.

The company is said to be little known but has branches in several states, including in Johor, Melaka, Kedah and Perlis. It apparently offered investors a real estate leasing programme with handsome dividends within 45 days.

Hishamuddin, along with the victims’ representatives, held a closed-door meeting with Bukit Aman commercial crime investigation department director Ramli Yoosuf, and it is understood that police have opened 15 investigation papers regarding the case.