KOTA KINABALU: A company, claiming to be a property developer, has allegedly conned 76 unsuspecting buyers of RM1.56 million by selling non-existent property products.
State police commercial crime chief Superintendent Saiman Kasran said the police had received 83 reports against the company and raided its office here on April 24 this year.
The police also nabbed a 47-year-old man and a 48-year-old women who were believed to be selling non-existent bungalow lots and property projects in Sabah. The woman was the managing director of the company while the man was her assistant.
Three computers, bank account books, mobile phones and documents believed to be used in the duo’s fraudulent activities, were seized as well.
In a press statement issued yesterday, Saiman said police investigation found that the company had no licence for development and collecting deposits.
He said the duo carried out their alleged frauds by advertising in local papers on development projects and sale of bungalow lots in Sabah at a cheap price. Customers who were interested were required to pay a 20 per cent deposit of the property price.
In addition, the company also promised agents 10 per cent commission from the deposit paid by customers.
A total of 76 victims had paid their deposits amounting to RM1.56 million but there was no signing of Sales and Purchase Agreements (SPA) or handing over of keys as promised by the company, he said.
The duo were charged in the Sessions Court yesterday under Section 420 of the Penal Code for cheating and dishonestly inducing delivery of property, which carries a punishment of imprisonment for a term not less than a year and not more than 10 years and with whipping, as well as be liable to a fine.
However, the duo pleaded not guilty and were released on RM12,000 bail for each charge with two local sureties. Their passports were also compounded.
Saiman urged the public to be cautious in purchasing land or residential units that ended up being non-existent.
He said buyers should refer to legal firms or relevant agencies if they had any doubts on the purchase.