Magistrate Aini Adilah Faizal ruled that the prosecution had failed to establish a prima facie case against Loh Yee Chuan, 38, and ordered that he be freed without having to enter his defence.

The court also noted what it described as an incomplete investigation.

Loh, who is now working in Taiwan, was accused of cheating Phee Wei Sheng, 38, by inducing him to believe he would earn profits from a forex investment, leading Phee to transfer RM330,000 into Loh’s bank account in seven transactions between Nov 15 and Dec 23, 2019.

The charges were framed under Section 420 of the Penal Code for cheating and dishonestly inducing the delivery of property, which carries a jail term of one to 10 years, whipping, and a fine upon conviction.

Loh’s lawyer, C Hari Prassaad Rao, told the court the evidence showed the transactions were loans made under a “friendly agreement” and did not involve deception.

Deputy public prosecutor Siti Nur Farihin Ahmad prosecuted the case.