Cracking the RM3.17 Billion MBI Scam: 8 Arrested, Including 4 Datuks

Malaysian police have uncovered a major financial scam linked to the MBI Group, arresting eight people and seizing assets worth RM3.17 billion. Among those arrested were four individuals with the title “Datuk”, showing the high-level connections involved in the case.

The arrests were made under Ops Northern Star, a special operation carried out by the Anti-Money Laundering division of the police. The action followed a red notice issued by Interpol on 20 March, bringing international attention to the case.

Police said they carried out several raids and froze hundreds of bank accounts and other assets linked to a suspected Ponzi scheme called Pelaburan MBI (MBI Investment). Although the scheme was based overseas, all arrests and asset seizures took place in Malaysia.

In total, authorities froze 638 bank and share accounts worth over RM1.16 billion. They also took control of 35 properties with a total value of RM2 billion. Other seized items included 10 luxury cars, 12 expensive watches, and cash in various currencies.

The suspects, aged between 44 and 62, include two businessmen and two lawyers. Their backgrounds suggest that the scheme was carefully planned and involved professionals from different industries.

The MBI case has been under investigation for several years. In 2019, a group of Chinese investors came to Malaysia to find MBIs founder, Tedy Teow, in hopes of recovering money they had lost. These investors claimed that around two million people in China were affected by the scam, which reportedly involved up to 500 billion yuan (about RM307 billion).

Chinese police issued a red notice for Teow in November 2020. He was later arrested by Thai authorities in July 2022, after a raid on MBIs office in Songkhla. Teow was accused of running an illegal online casino and laundering money.

Teow owned a wide range of businesses in Danok, near the Malaysia-Thailand border. These included a hotel, a resort, a theme park, a furniture outlet, and several property projects. Investigators believe these businesses may have been used to hide the illegal earnings from the scheme.

Last year, Teow was sent from Thailand to China to assist with investigations involving Chinese victims.

The MBI scam reached far beyond Malaysia. Victims were also found in Thailand, Indonesia, Macau, and China. The case highlights how financial fraud can spread across countries, and how international cooperation is needed to fight such crimes.

Police are expected to continue their investigation to find more people involved and to locate other hidden assets linked to MBIs network.