KUALA LUMPUR (April 11): The Royal Malaysian Police (PDRM) has seized and frozen assets valued at more than RM3.17 billion connected to a large-scale Ponzi scheme associated with the defunct MBI group. This follows a series of cross-border raids conducted last month under an operation codenamed “Op Northern Star”.

Inspector General of Police Tan Sri Razarudin Husain confirmed in a statement on Friday that the operation, which took place on March 20, was initiated based on a Red Notice alert issued by Interpol.

The crackdown, spearheaded by the Anti-Money Laundering Criminal Investigation Division (AMLA) of Bukit Aman, targeted assets believed to be proceeds from a fraudulent investment scheme centred around MBI, which had been operating from a neighbouring country.

The police statement confirms a report published by The Edge Malaysia weekly in its March 31–April 6, 2025 issue, citing sources, that AMLA had led a series of raids in March related to the long-running MBI pyramid scheme.

According to the statement, eight Malaysian nationals — seven men and one woman, aged between 44 and 62 — were apprehended during the operation. Among those arrested were two businessmen and two lawyers who hold the “Datuk” title.

All suspects have been remanded for periods ranging from one to seven days, to assist with investigations under Section 4(1) of the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001 (Act 613).

The police confiscated a wide range of assets, including over 600 bank and share trading accounts holding more than RM1.16 billion, as well as 35 properties, with an estimated value of RM2.01 billion. Luxury items such as high-end vehicles, branded watches, designer handbags,  jewellery, and electronic devices were also seized, along with cash in various currencies and a significant amount of important documents.

The total estimated value of the seized assets and frozen accounts amounted to RM3.17 billion. “All assets and items seized are believed to be proceeds derived from illegal gains linked to the fraudulent investment activities,” said Razarudin.

“PDRM will continue investigations into any individual or entity suspected of being directly or indirectly involved in acquiring, receiving, possessing, concealing, transferring, converting, moving in or out, using, or disposing of illicit proceeds from this fraudulent investment activity,” he added.

According to The Edge’s report, the raids uncovered new links between the MBI scheme and high-profile individuals and corporate interests, including several property and share transactions involving listed companies.

Documents seized reportedly include those connected to the RM10 billion Penang World City (PWC) development at Bayan Mutiara, which was once associated with Hemat Tuah Sdn Bhd — a company linked to MBI and controlled by family members of MBI founder Tedy Teow.

Authorities are also said to have obtained documents related to investments in companies such as Mayu Global Group Bhd (KL:MAYU) — formerly Atta Global, and HHRG Bhd (KL:HHRG) — formerly Heng Huat Resources Group Bhd, both of which are now under different management and controlling shareholders.

The MBI saga, which was previously thought to be nearing its conclusion following the extradition of its mastermind Teow to China in August last year, appears to be far from over. These recent enforcement efforts have renewed scrutiny of local entities and individuals who may still be entangled in the web of one of Malaysia’s largest investment frauds.

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