IPOH: A sole proprietor of two companies and a housewife were slapped with 31 charges of money laundering involving over RM764,000.

Lim Kah Heng, 42 and Lee Mei Jen, 34 were charged separately at a Sessions Court here under Section 4 (1) (a) of the Anti-Money Laundering and Anti-Terrorism Financing Act 2001. Lim, the sole proprietor of Visiotec Marketing and Buycomm Network, had 28 charges against him for receiving money totaling RM367,200 through his personal and both company accounts, with some of it illegally coming fromthe Genneva Malaysia Sdn Bhd banking account.

The offences were committed at two different banks in Ipoh between April 23, 2011 and Aug 27 last year. The bachelor from Canning Garden, near here was on Friday charged together with five others senior officials of the gold investment scheme company (Genneva Malaysia Sdn Bhd) with 926 charges of money laundering, making false statements and illegal deposit-taking involving RM5.5bil.

Lee had three charges against her for receiving money totaling RM196,800 which were obtained through illegal means at a bank in Bercham, and also having in possession in her safe deposit box of another bank, also in Bercham, cash worth RM200,000 and 4kg of gold bars.

Both claimed trial to all the charges brought against them before judge Madihah Harullah on Monday.

Madihah set bail at RM100,000 with two sureties for Lim, while Lee’s bail was fixed at RM20,000 with one surety, and passport ordered to be surrendered.

She also granted their request to post bail on Tuesday before 2pm.

Earlier, Deputy Public Prosecutor Nik Haslinie Hashim requested that the case be transferred to Kuala Lumpur to be heard together with similar such cases of individuals charged under the same the Section.

Madihah granted the request and fixed Oct 25 for mention at the Kuala Lumpur Sessions Court.

Counsel J. Kuldeep Kumar requested for bail to be set at RM20,000 for Lim as he had to pay a hefty sum for his earlier charge in Kuala Lumpur, and that all his bank accounts were also frozen by Bank Negara.

“My client has to look after his 65-year-old sickly mother, and he has been jobless for the past one-year. “He has been very cooperative, and there are no chances of him absconding,” he said.

(The Star, Monday, 30 September 2013)

 

Required:

Critically analyze the case above and discuss on the fraud scheme being carried out. Your discussion should also include the mechanism of the fraud being carried out and the red flags that triggers suspicion of this fraud in organizations.