Datuk businessman fined RM600 million for breach of trust

Kuala Lumpur, 8th) A local businessman with the title of Datuk, who was involved in a RM1 billion investment fraud case, was ordered by the Malaysian High Court and the British court to pay RM600 million in compensation to "Zavarco" users for breach of trust.

Zavarco Investment Executive Officer Manian said in a statement that the Malaysian High Court and the British court stated in their judgments that the defendant was fined 101.5 million euros (about RM512 million) for erroneously issuing shares of a listed company (Zavarco Plc) without cash consideration.

He said this was the final judgment of the court against an individual involved in corporate crimes and misappropriation of funds (including breach of trust), and that the Malaysian High Court had also made a judgment of RM61 million (including punitive and exemplary damages, but excluding interest) for the defendant transferring RM12 million of investors' funds into his personal account.

Meanwhile, Bukit Aman Commercial Crime Investigation Department director Datuk Seri Langley said they were verifying claims that the suspects were also involved in illegal investment activities.

He said the police had received a report from a foreign man that the businessman was involved in a "short selling case" on April 16, 2019, and the case is being investigated under Section 420 of the Penal Code.