By Vasantha Ganesan

Ahmad Khairuddin, who joined the board of Genneva Malaysia Sdn Bhd (GMSB) in November 2010, is a University Teknologi Malaysia graduate with a Diploma in Architecture. He joined the board of directors of poultry and property firm LTKM Bhd in December 1999. Prior to that, he ran his own business in the palm oil industry. Ahmad Khairuddin was chairman of LTKM for 14 years until he vacated the position in November 2013. He was also the vice-chairman and non-executive director of brokerage TCL Premier Holdings Bhd from 1996 to September 2000. TCL was taken over by OSK Holdings Bhd and subsequently renamed OSK Property Holdings Bhd in 2002. Ahmad Khairuddin is also a shareholder in companies such as Akidah Murni Sdn Bhd (24.95%), Perisai Intan Sdn Bhd (35%), Saudi-Malaysia Vision Sdn Bhd (50%), Smartestco Sdn Bhd (25%) and Ultra Focus Sdn Bhd (10%).

Lim is a former shareholder and director of GMSB. He is also a 50% shareholder of Success Attitude Sdn Bhd, which has been slapped with a fine. Success Attitude was a consultant or agent to GMSB. In addition, Lim is a shareholder in at least three other companies, including Maxi Distinction Sdn Bhd, Original Spectrum Sdn Bhd and Scuba Point Sdn Bhd. Maxi Distinction and Original Spectrum appear to be involved in property investment and letting of property, while Scuba Point conducts classes on snorkelling, scuba diving and trading of sea and water sports equipment. Lim has a 50% stake in Maxi Distinction as well as Original Spectrum, and 37.5% in Scuba Point.

Chiew is Lim’s wife and his partner in Success Attitude, Maxi Distinction, Original Spectrum and Scuba Point. She holds the remaining 50% not held by Lim in Success Attitude, Maxi Distinction and Original Spectrum. In Scuba Point, she owns the remaining 62.5%.

Tan is a former shareholder and director of GMSB. He holds a 49% stake in Samudra-GV Sdn Bhd, 70% in ETA Harvest Sdn Bhd and 20% in Fresh Control (M) Sdn Bhd.

Yee is a former shareholder of GMSB and a business adviser to GMSB, while Yao was Yee’s personal assistant. Yee is also a shareholder in at least three other companies. He holds a 25% stake in Genneva Sdn Bhd. Yee, Ahmad Khairuddin and Ng Poh Weng were also directors at Genneva Sdn Bhd. Yee’s other companies include A-Demand Sdn Bhd, in which he holds a 33.33% stake, and Maquip Sdn Bhd, where he has a 25% stake. Maquip is involved in construction equipment and related products, including piling equipment.

Lim was general manager of GMSB.

Ng was business adviser to GMSB. He is not a founding member of Poh Kong Holdings Bhd, as some reports have falsely stated.

By Hafiz Yatim

A notice of appeal has been filed at both the High Court and Court of Appeal by nearly all 11 of the accused — including three companies — convicted by the High Court earlier last week in the fraudulent gold trading scheme of Genneva Malaysia Sdn Bhd (GMSB), and sentenced to imprisonment and a fine.

Sources from the Kuala Lumpur High Court and their lawyers confirmed the appeal.

“The notice of appeal had already been filed on Wednesday,” Gooi Soon Seng, who is representing GMSB, Success Attitude Sdn Bhd and six of the individuals, tells The Edge.

Last Tuesday, Datuk Tan Liang Keat, Lim Kah Heng, Datuk Philip Lim Jit Meng, Datuk Ng Poh Weng, Ahmad Khairuddin Ilias, Datuk Marcus Yee Yuen Seng, Chiew Soo Ling and Yao Kee Boon, along with GMSB, Success Attitude and Ng Advantage Sdn Bhd, were found guilty of accepting illegal deposits and/or money laundering.

Mohd Irzan Iswat, who is representing Ahmad Khairuddin, also confirmed that an appeal notice had been filed on Friday.

Lawyer Datuk Gobinath Mohanna, who is appearing for Ng and his company Ng Advantage, said, however, that he had yet to receive instructions from his client, who is currently serving time in prison for a case involving GMSB.

GMSB’s appeal and that of the eight others to set aside their conviction and sentence will be heard by the appellate court, whose decision will be final, as the trial involving GMSB and the eight individuals (including Ng) had begun at the Sessions Court.

The Sessions Court had ordered them to enter their defence but later acquitted them of all charges. On appeal by the prosecution, however, the decision of the inferior court was overturned by the High Court on Tuesday.

Tan, Lim, Ng, Jit Meng and Ahmad Khairuddin, along with GMSB, were found guilty of accepting illegal deposits under the Banking and Financial Institution Act 1984.

Tan, Lim, Ng, Jit Meng and GMSB were also found guilty of money laundering, as were Chiew, Yao, Success Attitude and Ng Advantage.

By Vasantha Ganesan

THE Singapore Commercial Affairs Department (CAD) raided gold investment company Genneva Pte Ltd’s office in Orchard Tower on Oct 1, 2012 — the same day the local authorities raided Genneva Malaysia Sdn Bhd’s (GMSB) offices in Malaysia.

On Feb 26, 2019, CAD announced that, with the assistance of the Royal Malaysian Police, they had arrested two individuals — former general manager Kwok Fong Loong and former head of transactions Lim Hong Boon — for their suspected involvement in Genneva.

Similar to Malaysia, gold bars were sold under a buyback scheme between 2008 and 2012 to customers with the promise of returns as high as 36% a year over a contract period, based on the price of the gold bought from Genneva.

The company subsequently ran into finan­cial difficulties, however, and started to delay payments to customers. It then implemented a “Gold Inspection” exercise, whereby customers were required to deposit their gold bars with Genneva when renewing their contracts — purportedly to ascertain the authenticity and purity of the gold. The bars would then be returned to the customers after three working days.

Instead of returning the gold bars to customers, however, Genneva either sold them to new customers or pawned them for cash. It was reported that between Aug 17 and Sept 30, 2012, the company collected 3,578.9kg of gold from its customers.

It started to default on returning gold to its customers from Sept 7, 2012, but continued to operate the scheme and collect gold from its clientele.

On Sept 28, 2012, Lim Kieng Justin, who had then just taken over as Genneva’s general manager, said there had been a “discovery of financial improprieties some time back” that had led to a delay in the payment of discounts, commission and fulfilment of buyback guarantees.

By Sept 30, 2012, the company had failed to return about 640kg of gold, with an estimated market value of S$45 million, to its customers.

Just recently, on July 30, Kwok, a Malaysian, was sentenced to 56 months’ jail after pleading guilty to one count of fraudulent trading. The outcome of the fraudulent trading charge against Lim is pending.

The deputy public prosecutor in Singa­pore was quoted as saying, “Essentially, by obtaining gold on credit from existing clients, Genneva used the gold to relieve its cash-flow problems by generating more cash for the company.”