KUALA LUMPUR (July 15): A former director of Kyaputen Sdn Bhd was sentenced to five years in jail on Wednesday after being found guilty of unlicensed fund management activities and money laundering offences that caused at least six victims to lose RM1.263 million.

In a statement on Wednesday, the Securities Commission Malaysia (SC) said Muhamad Fadzli Jamaludin was convicted by the Sessions Court over offences committed between August 2018 and April 2020 in Kuala Lumpur and Melaka.

Muhamad Fadzli was initially charged on Nov 9, 2023 with three counts under Section 58(1) of the Capital Markets and Services Act 2007 (CMSA) for holding himself out as carrying on a fund management business without a licence.

He was subsequently slapped with a further nine charges on Nov 29, 2023 under Section 4(1)(b) of the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001 for money laundering.

Both cases, involving a total of 12 charges, were jointly tried.

In her judgment on Wednesday, Sessions Court judge Hamidah Mohamed Deril found that Muhamad Fadzli had failed to raise a reasonable doubt in the prosecution's case, which included evidence from 23 witnesses, among them the six victims.

A person who is convicted under section 58(1) of the CMSA is liable to a fine not exceeding RM10 million or imprisonment not exceeding 10 years or both.

On money laundering offences, the applicable law provides for a maximum imprisonment term of 15 years and a fine of not less than five times the value of the proceeds of the unlawful activity or RM5 million, whichever is higher.

The SC in its statement further reminds investors to only deal with individuals and entities licensed by the SC in relation to regulated activities such as fund management.