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Malaysia justifies raid on Gold companies

# Malaysia gold  # Bank Negara  # gold fraudster  #   

The statement said many schemes by these companies were simply not sustainable to provide the promised high monthly returns and they were also found to be unable to provide the guarantee buy-back of gold

KUALA LUMPUR(BullionStreet): Malaysian authorities issued a statement justifying recent raids conducted on several gold trading companies.

In a joint sttaement, country's central bank, Bank Negara Malaysia, the police and the Attorney-General's Chambers said the raids were conducted in the best interest of the public to prevent them from falling victim to such schemes and to protect those who had already invested.

The recent raids by the authorities on several companies suspected of operating illegal gold investment schemes were prompted by unsustainable high monthly returns and questionable promises.

The statement said many schemes by these companies were simply not sustainable to provide the promised high monthly returns and they were also found to be unable to provide the guarantee buy-back of gold.

The scheme was found to be unsustainable as the returns promised were not funded through gold trading but from monies invested into the scheme.

"Investigations also revealed that the assets and funds held by the companies raided did not commensurate with the amount of money collected from various investors," the statement added.

Bank Negara disclosed that prior to the joint raids by various agencies, it had noted that the companies in question had delayed returning gold and money to investors within the stipulated time.

This was always one of the early warning indications prior to the collapse of such schemes which would result in substantial losses suffered by investors.

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