Malaysian Businessman Raja Noor Asma Sentenced to 7 Years in Prison and Fined RM5 Million for Massive Ponzi Scheme

In a landmark decision, Kuala Lumpur Sessions Court sentenced local businessman Raja Noor Asma to seven years in prison and imposed a hefty fine of RM5 million on December 21, 2010. This is the largest sentence and fine of its kind against a capital market offender.

Fraud and Money Laundering Charges

Raja Noor Asma admitted guilt to four counts of fraud and 50 charges of money laundering, defrauding over 4,000 investors of more than RM100 million.

Sentence and Fine

The court sentenced him to seven years in prison and fined him RM5 million. Additionally, Raja Noor Asma received an additional two-year imprisonment term for each of the 50 money laundering charges. However, these terms will run concurrently, reducing the total imprisonment term to seven years. The court also ordered the forfeiture of approximately RM8.3 million frozen under the Anti-Money Laundering and Terrorism Financing Act 2001 (AMLATFA).

SC’s Stance

The Securities Commission Malaysia (SC) stressed the need for a stern sentence, given the significant number of investors affected and the substantial amount of money involved in the Ponzi scheme. They stated,

“The SC’s primary objective is to protect investors and uphold public faith in the capital market. This decision sends a clear message to would-be offenders that such schemes will not be tolerated.”

Investor Advice from the Judge

During the trial, the judge urged the public to exercise utmost caution when encountering any investment opportunities promising unusually high returns. He advised investors to only engage with individuals or companies that hold the necessary permits from the SC to operate in the investing sector.

The SC’s Commitment

The Securities Commission reaffirmed their commitment to combating illegal investment activities that jeopardize investors and the capital market ecosystem. Their statement emphasized,

“The SC will leave no stone unturned in its pursuit of combating illegal investment activities that jeopardize investors and the capital market ecosystem.”