KUALA LUMPUR (Oct 7): Bank Negara Malaysia (BNM) has served cause papers on Genneva Malaysia Sdn Bhd (GMSB) in a bid to recover RM93 million out of billions of ringgit deposited into the gold investment firm’s accounts.

This was stated by Deputy Public Prosecutor (DPP) Alvin Ong, representing BNM, during a case mention before Judge Datuk Ahmad Kamal Arifin Ismail in the Sessions Court today. 

The judge then gave GMSB and other respondents two weeks to file their reply to the cause papers under the Banking and Financial Institutions Act 1989 (BAFIA) and Section 407 of the Criminal Procedure Code (CPC), and set Oct 26 for the next case mention before him.  

On Aug 4, High Court Judicial Commissioner Datuk Ahmad Shahrir Mohd Salleh found GMSB guilty of illegal deposit-taking and money laundering, and ordered the company to pay a RM450 million fine. 

Ahmad Shahrir also sentenced eight individuals, who were either former directors or advisers of GMSB or two other companies, to jail terms ranging from four to nine years, and fines of RM1 million to RM4 million each, for each charge that includes illegal deposit-taking and money laundering. 

All eight individuals had filed notices of appeal against the convictions and sentences, and their final appeal will be heard in the Court of Appeal. 

The depositors affected by the scam can make their claims either through third-party proceedings — when the notice issued for forfeiture under BAFIA and the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001 (AMLATFPUAA) by BNM has been gazetted by the Sessions Court — or by filing a civil suit against GMSB. 

The seizure and freezing of GMSB's accounts began in October 2012, when the police, Ministry of Domestic Trade, Cooperatives and Consumerism, Companies Commission of Malaysia and BNM raided its premises and those of its affiliates. 

The central bank revealed that RM99.8 million from GMSB’s accounts and 126kg of gold were seized during the raids.

Then deputy finance minister Datuk Dr Awang Adek Hussin told Parliament that the total investment in GMSB’s gold scheme, which affected some 35,000 depositors, ranged from RM4 billion to RM10 billion.