Singaporean man ordered to repay RM28 million to 122 Malaysian investors in court ruling

The Kuala Lumpur High Court has ruled that Singaporean businessman Chan Cheh Shin must repay approximately RM28 million (S$8.4 million) to 122 Malaysian investors who sued him in 2022. The case centred on allegations of illegal investment operations run by Chan. Justice Arief Emran Arifin, presiding over the case, found that Chan had failed to obtain the necessary approval from the Securities Commission Malaysia to collect investment funds. According to a report by Free Malaysia Today (FMT) on 15 November, the court declared Chan's operation illegal and ordered him to return the funds collected from investors. The court also ruled that Chan must pay 5 per cent annual interest on the sum from the date of the case filing until full repayment is made. Chan, represented by his lawyer Ravi Nekoo, plans to appeal the judgment.

Illegal investment operations exposed

Chan operated through a company named Fulda Malaysia, where he served as a director. He promoted various investment schemes via roadshows and seminars, promising significant returns and assuring investors of prudent fund management, according to FMT. Investors were also reportedly assured indemnification in the event of investment failures. From 2016, investors paid money to Fulda Malaysia and Palau Capital, a Singapore-based company where Chan also held a directorship. However, the investors alleged they received no returns on their investments, prompting them to file a lawsuit in 2022 to recover their capital.

Previous legal troubles

This case is not Chan’s first brush with the law in Malaysia. In 2020, he and two brothers were charged at the Seremban Sessions Court for allegedly defrauding a businessman in a cryptocurrency investment scheme, resulting in losses exceeding RM2.4 million. In 2021, Chan, along with a married couple, faced charges at the Ipoh magistrate’s court for allegedly cheating two individuals of RM12,867.30 in another investment scheme. Investors have been urged to verify the legitimacy of investment schemes with the Securities Commission Malaysia to avoid falling victim to fraud.