(Oct 20): MyAirline co-founder Datuk Allan Goh Hwan Hua and four companies are being sued by 15 investors over their alleged failure to pay monthly redemption value sums and financing returns from the investors’ outlay of about RM8 million.
However, Goh, along with the four companies named in the suit — i-Serve Online Mall Sdn Bhd (ISOM), Bright Moon Venture PLT (BMV), QA Smart Partnership PLT (QAS) and Trillion Cove Holdings Bhd (TCH) — have filed an application to strike out the suit on the basis that the legal action was a nullity and an abuse of court process.
Goh, 57, is a shareholder of ISOM and director and shareholder of TCH.
In their statement of claim dated July 21 last year, the investors claimed that at all material times, the companies were prompt and consistent in their monthly payments.
However, the companies had failed to make the agreed upon monthly payments from November 2021 to June 2022, despite having been sent letters of demand by the plaintiffs' solicitors.
In court documents seen by The Edge, the plaintiffs said failure to make the payments was a breach of agreement and they are seeking their full investment amount as well as arrears of the monthly payments.
The plaintiffs also claimed that ISOM had made undertakings and representations, "expressly or by conduct" that it is jointly liable with BMV, QAS and TCH to make the payouts on behalf of BMV, QAS and TCH.
The plaintiffs are P Ponnamal, A Prema, Deborah Ann Rodrigo, YM Che Engku Mahirah Abdullah, Goh Chiang Beng, Alexander Vincent, Gea Ban Thong, Ng Guat Tin, Koh Kock Keang, S Supramaniam, Harith Abdul Hamid, Ismat Abdul Rauf, Koh Kok Chong, Gea Seok Eng and K Thangamuthu.
They claimed that Goh is the "controlling mind" of the defendants and cited notices, announcements and teleconferences organised by or under Goh and ISOM's instructions regarding investments via BMV, QAS and TCH.
"In conference calls with the plaintiffs and other investors, Goh had made representations and statements on the ongoing issues faced by ISOM and the impact it would or would not have with regards to the plaintiff's monthly returns pursuant to the respective agreements with TCH, BMV and QAS. Goh has also represented many times that ISOM and himself are members of the same team with the investors," they elaborated in the court document.
The plaintiffs also noted that the payments to them stopped in November 2021, around the time that Bank Negara Malaysia (BNM) had raided ISOM, TCH and other companies and subsequently frozen their banking accounts.
The plaintiffs added that there was no freeze order against BMV or QAS.
Goh has initiated a judicial review application challenging BNM's freeze order.
The plaintiffs also claimed that ISOM and Goh are trustees for BMV, QAS and TCH, and had breached their fiduciary duties.
The investors are represented by Messrs Raj & Sach.
Goh: Monies were part of sum seized by BNM, plaintiffs prohibited from pursuing legal action
In a bid to strike out the suit filed in September last year, Goh contended that the plaintiffs are "statutorily prohibited" from filing the legal action as the sum demanded was part of the monies seized by BNM under the Anti-Money Laundering Act (AMLA).
Goh also claimed that the plaintiffs had defied the law by proceeding with legal action without getting written consent from the public prosecutor.
He also said he was not a party to the contracts between the plaintiffs and BMV, QAS and TCH.
Goh also claimed that the allegations in support of the legal action were unsustainable they were "vague, imprecise and lacking in material particulars".
He also added that the suit against him was unsustainable in light of the plaintiffs' own admission that the agreements were not breached until the freeze and seizure orders.
Messrs Mathews Hun Lachimanan is representing Goh in this matter.
All the other defendants are also similarly looking to strike out the suit.
Messrs Chetan Jethwani & Company are representing ISOM and TCH while law firm D’Cruz & Sia is acting for BMV and QAS.
The case has been transferred from the civil division to the commercial division and all five striking out applications will be heard Nov 22 before High Court judge Adlin Abdul Majid.
Goh is the co-founder and majority shareholder of troubled budget airline MYAirline Sdn Bhd.
On Wednesday, the police confirmed that Goh and two of his family members had been arrested. They have been remanded four days to facilitate investigations under AMLA.
Last month, BNM said it had imposed a RM50 million compound against the i-Serve Group for accepting deposits without a licence.
BNM said it imposed the compound for seven entities under the i-Serve Group per Section 137(1) of the Financial Services Act (FSA) and for money laundering under Section 4(1) of AMLA.
BNM said the compound was imposed on Oct 19, last year with the written consent of the public prosecutor under a joint enforcement action that followed its investigation which found that the offences were conducted between June 2018 and Sept 2021.
The seven entities are i-Serve Online Mall Sdn Bhd (RM12.5 million), i-Serve Technology and Vacations Sdn Bhd (RM12.5 million), QA Smart Partnership PLT, QA Elite Partnership PLT, QA Premium Partnership PLT and MM2217 PLT and Valuewise PLT (RM5 million each).
BNM added that the entities paid the compound on Nov 16.