KUALA LUMPUR: An investment scam syndicate has been using the name of New York-based private equity firm Warburg Pincus to dupe people, police said.
The Bukit Aman Commercial Crime Investigation Department said the syndicate had cheated 44 victims of RM21.93 million.
Its director, Datuk Seri Ramli Mohamed Yoosuf, said police launched raids in Selangor, Kuala Lumpur, Johor, Perak, Kedah, Sabah and Sarawak on July 30 and 31 in connection with the case.
"We arrested five men and five women, all locals, aged 21 to 52.
"The suspects are believed to be directors and owners of companies that were linked to the investment scam," he said in Bukit Aman today.
He said police seized eight mobile phones, one ATM card and one company registration card.
"The syndicate is believed to have begun operating early this year, entirely online.
"It used the name of Warburg Pincus to convince victims to invest."
He said the syndicate enticed people with returns of 11 to 15 per cent and offered "trading teachers" to teach them how to maximise their returns.
"The victims were told to download an application, then bank in money to mule accounts to start investing.
"We have opened 44 investigation papers involving losses of RM21.93 million."
He said 20 bank accounts belonging to businesses and companies were used as mule accounts.
Ramli reminded the public that investment schemes offered online were often scams.
"The public is advised to only invest through authorised channels recognised by the Securities Commission and Bank Negara Malaysia."