SHAH ALAM (Sept 23): Two directors of a direct sales company pleaded not guilty in the Sessions Court here on Wednesday to two charges relating to a pyramid scheme and a breach of direct sales licence conditions between September 2024 and June last year.

Lim Boon Hong, 51, and Ong Sim Yee, 48, both Singaporean citizens, entered the plea after the charges were read separately before judge Ainul Bashiirah Dona Don Biyajid.

They are accused of promoting a pyramid scheme, an offence under Section 27B of the Direct Sales and Anti-Pyramid Scheme Act 1993 (Act 500), which carries a fine of between RM50,000 and RM1 million, imprisonment of up to five years, or both, upon conviction.

They were also charged as direct sales licence holders with failing to comply with licence conditions by adopting an unapproved marketing plan.

The charge was brought under Section 6(4) of Act 500, which provides for a fine not exceeding RM100,000 or imprisonment of up to three years, or both.

Both offences are alleged to have been committed at their company office in Taman Perindustrian Bukit Jelutong, Section U8, here, between Sept 14, 2024, and June 20, 2025.

Ministry of Domestic Trade and Cost of Living (KPDN) prosecuting officer Muhamad Saiful Saaidin appeared for the prosecution, while the accused were represented by lawyer Chew Jee San.

The court granted bail of RM100,000 for each accused with two local sureties.

They were also ordered to report to the KPDN office every two months and not to interfere with prosecution witnesses.

The case was fixed for mention on Nov 2.

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