M'sia securities watchdog clampdown on Internet trading scam

Source: http://hosted.ap.org

Feb 26, 7:15 AM EST

Malaysia’s securities watchdog freezes bank accounts in clampdown on Internet trading scam

KUALA LUMPUR, Malaysia (AP) – Malaysia’s securities watchdog said Monday it has frozen two local bank accounts, shut down two Web sites and questioned several people suspected linked to a global Internet investment scam.

The move came after the Dubai Financial Services Authority requested for assistance on the fraudulent scheme operated by Cambridge Capital Trading, the Securities Commission said in a statement.

The racket operators, which have so far targeted Australian and Singaporean investors, have been cold calling the public to put money in a host of products traded on the fictitious Dubai Options Exchange and the UAE Commodities Futures Board, the commission said.

Investors were directed to Web sites and told to transfer funds to a bank account in Malaysia, it said, adding that scam operators also set up fake electronic, answering services, fax and billing addresses in Dubai, Britain and the United States.

Following its own investigations into the scam for possible breaches of the Anti Money Laundering Act, the commission said it has obtained restraining order on signatories of two local bank accounts amounting to 1.6 million ringgit (US$457,000, 381,000) and closed two Web sites linked to Cambridge Capital.

It said it has questioned several individuals but no arrests have been made. It said it is continuing its investigations and working closely with market regulators in Britain, United States and Australia.

It warned investors to be vigilant and invest only through licensed parties.

The commission didn’t say if any one in the country has fallen victim to the scam. Officials could not be reached for further details.