KUALA LUMPUR: The Royal Malaysian Police (PDRM) has seized and frozen assets worth over RM3.17 billion in connection with a large-scale Ponzi scheme involving the now-defunct MBI group. The operation, codenamed “Op Northern Star,” followed a series of cross-border raids conducted in March 2025, based on a Red Notice alert from Interpol.
Inspector General of Police Tan Sri Razarudin Husain confirmed in a statement that the operation, launched on March 20, targeted assets believed to be proceeds of the fraudulent investment scheme operated by MBI from a neighbouring country.
The police statement substantiates a report published by The Edge Malaysia in its March 31–April 6, 2025 issue, revealing that the Anti-Money Laundering Criminal Investigation Division (AMLA) of Bukit Aman led the crackdown, which sent shockwaves through Penang’s property sector.
During the operation, eight Malaysian nationals – seven men and one woman, aged between 44 and 62 – were arrested. Among those detained were two businessmen and two lawyers holding the prestigious “Datuk” title.
All suspects have been remanded for periods ranging from one to seven days to assist in investigations under Section 4(1) of the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001 (Act 613).
The police seized a wide range of assets, including over 600 bank and share trading accounts, which held more than RM1.16 billion. Additionally, 35 properties with an estimated value of RM2.01 billion were confiscated, along with high-end vehicles, luxury watches, designer handbags, jewellery, electronic devices, and various currencies in cash. Important documents were also seized, further supporting the investigation.
The total estimated value of the assets seized and accounts frozen amounts to RM3.17 billion. Tan Sri Razarudin confirmed that all seized assets are believed to be the proceeds of illicit gains linked to the fraudulent investment activities.
“PDRM will continue its investigations into individuals or entities suspected of being directly or indirectly involved in any activities related to illicit proceeds from this fraudulent investment scheme,” he added.
The raids have uncovered new links between the MBI scheme and high-profile individuals, including property and share transactions involving listed companies. Seized documents reportedly include those related to the RM10 billion Penang World City (PWC) development in Bayan Mutiara, previously connected to Hemat Tuah Sdn Bhd, a company controlled by family members of MBI founder Tedy Teow.
Authorities have also obtained documents related to investments in companies such as Mayu Global Group Bhd (formerly Atta Global) and HHRG Bhd (formerly Heng Huat Resources Group Bhd), both now under new management and ownership.
Despite the extradition of MBI founder Tedy Teow to China in August 2024, investigations into the MBI Ponzi scheme appear far from over. These recent enforcement actions have reignited scrutiny into local entities and individuals who may still be involved in one of Malaysia’s largest financial frauds.
