Wong Weng Foo said the law firm withdrew the money using an invalid board resolution dated June 26 and authorisation letters purportedly issued by directors who were convicts and bankrupts.
One of the directors was adjudicated bankrupt in 2013, while three others were convicted of criminal offences and had the final appeal dismissed by the Court of Appeal.
Of the three convicts, one died while serving his sentence, while another was declared bankrupt in Jan 2021.
Wong noted that there was no functioning board, as only one director, Ng Wan Yee, remained. Ng had appointed Wong as the provisional liquidator pending the winding up of the company.
On Aug 15, Wong was appointed by the court as the interim liquidator with authority over the management, assets and business operations of Genneva.
In a report filed at the Dang Wangi police headquarters on Sept 5, Wong urged the police to investigate the matter, asserting that the withdrawals were illegal.
“The report was lodged after it came to my attention that Genneva’s assets had been dissipated or funds had been withdrawn through unlawful means,” he told FMT.
Bank Negara Malaysia froze Genneva’s assets some 15 years ago after suspecting the company of engaging in money laundering activities through illegal deposit-taking from the public.
The prosecution froze RM20 million in cash and gold bars and attempted to seize several assets under the Anti-Money Laundering, Anti-Terrorism Financing, and Proceeds of Unlawful Activities Act 2001.
However, on June 28 this year, then sessions court judge Rozina Ayob revoked the seizure order over movable property and ordered the prosecution to return the assets to Genneva.
Wong said that on Aug 22 and Sept 2, he discovered that Genneva’s two bank accounts had zero balance.
On Aug 29 and Sept 9, he was informed by the two banks that RM6.5 million and RM5 million, respectively, had been withdrawn and transferred to the law firm between July and August this year.
On Feb 21, 2018, the Court of Appeal sentenced Ng Poh Weng, Chin Wai Leong, Marcus Yee, and Liew Chee Wah to three years in jail and fined them RM1 million each for money laundering.
The court also sentenced them to five years in prison and imposed an additional RM1 million fine for illegal deposit-taking.
Genneva itself was convicted of five counts of collecting deposits from the public without a licence and fined RM2 million.
Last Saturday, the liquidators held a town hall session with about 30 gold purchasers and investors to brief them on the latest developments.