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Published: Friday January 21, 2011 MYT 5:06:00 PM
Updated: Friday January 21, 2011 MYT 7:49:19 PM
Ginseng investment plan directors jailed and fined
By K. KASTURI DEWI
GEORGE TOWN: Two company directors who were involved in an illegal deposit taking scheme billed the ginseng investment plan were jailed a year and fined RM150,000 each by a Sessions Court here.
Sessions Judge Sitarun Nisa Abdul Aziz found Chong Wei Ken, 34, and Ng Meng Soon, 40, guilty at the close of the defence and ordered them to serve their sentences from Friday.
Chong and Ng being led away after their sentencing by the Sessions Court.
She also ordered them to pay the fine ore face a six months’ jail sentence each in default. The court, however, allowed the duo’s application for stay of execution with a bail of RM15,000 each pending an appeal.
Another accused Khor Cheng Loo, 37, who failed to turn up in court on the last hearing on Jan 7, was again absent Friday. The court has issued a warrant of arrest for Khor, who is on a RM50,000 bail.
Bank Negara prosecuting officer Alvin Ong Heng Kiat told the court that the prosecution had taken steps to advertise details about Khor in the English, Malay and Chinese newspapers but the warrant had yet to be executed. He also said a show cause letter had been issued to Khor’s bailer as to why the court should not forfeit the bail.
Khor, Chong and Ng, who were directors of Madang Impian Sdn Bhd, were convicted of accepting cash deposits without a valid licence for the company between June 2001 and February 2002 in a get-rich-quick scheme they called the ginseng investment scheme.
They committed the offence at Northam Tower in Jalan Sultan Ahmad Shah. The company has since ceased operations. The offence is punishable under Section 25(1) of the Banking and Financial Institutions Act 1989 which carries a maximum 10-years imprisonment or RM10mil fine or both upon conviction.
Chong was represented by A. Ashok while counsel Raftfizi Zainal Abidin represented Ng. Ong was assisted by Fahmi Abd Moin. During mitigation, Ashok said Chong’s role was to recruit investors and he was a victim of the scheme since he had lodged a police report. He claimed Chong collected RM132,000 and it was Khor who absconded with the money.
“There is no element of crime here and my client has co-operated with the police. He is also a first offender and there is no record of his involvement,” he said when urging the court to impose a lenient sentence. Raftfizi mitigated that Ng, who is married with two young children, was employed as a site supervisor with a construction company and only earning RM2,500 per month.
He said his client was a victim of the scheme as he was in the wrong place at the wrong time. “Ng had trusted Khor to the extent of falling into the latter’s trap,” he said, adding that Ng had also given full co-operation to the police.
The prosecutor argued back that although both accused had no previous conviction, people had to be protected from becoming victims of such schemes. He also said although there was no element of violence in the crime, it was still serious as it had caused the depositors to suffer monetary losses.
