KUALA LUMPUR, May 3 — Penang-based money game firm JJPTR is now offering its "investors” a new plan that promises higher monthly return rates of 35 per cent, despite its recent claims of losing RM500 million to hacking.

JJPTR’s founder Johnson Lee reportedly unveiled the new scheme last Tuesday after news reports of the collapse of his earlier scheme which promised 20 per cent returns each month to his "investors”.

Under this new scheme announced in a video posted online by Lee, the initial money pumped in by investors in US dollars will be "split”, with half of it to be re-invested in the next round of the scheme.

The new scheme allows investors to convert their US dollar-denominated earnings back into ringgit after three such rounds lasting 10 days, local daily The Star reported.

The paper said JJPTR is also now offering lucky draw prizes of a new car, motorcycles and smartphones.

The Star noted however that JJPTR did not divulge the launch date of the new scheme or how Lee would deal with the company’s alleged US$400 million (RM1.73 billion) losses or how he will refund those who suffered losses from his previous failed scheme.

In another report by The Star, financial adviser Afyan Mat Rawi who was described as a "scam buster” said JJPTR’s new scheme is an unsustainable and illogical ploy to pacify the company’s angry "investors”.

"A 35per cent return at the end of the three rounds (one month) is illogical. Where would the company find all the money to reinvest?” he was quoted saying. "The new plan is just a way for them to buy time.”

"No legitimate scheme will guarantee an annual return of more than 15per cent. Any scheme claiming to do otherwise has to be a scam,” Afyan said, adding that the JJPTR scheme will collapse like most other pyramid schemes when there are no entry of new "investors”.

JJPTR, a foreign exchange trading firm said to have been active for a year, and its affiliated JJ Poor to Rich and JJ Global Network were listed on February 24 on Bank Negara Malaysia’s website as unauthorised and unapproved companies.

The central bank had on its website advised the public to not deal with or be involved in such illegal financial service providers, warning that they would not be covered by consumer protection laws and that they may even be charged for aiding the illegal operators.

The Star said that the Companies Commission of Malaysia’s records show that JJ Global Network is a company with paid-up capital of RM2 — which would limit its shareholders’ liability to RM2 — with both Lee and his ex-girlfriend Tan Kai Lee each owning one of the two shares.

It said Lee, his father Lee Thean Chye and Tan are directors of another firm named JJ Global Network Holdings Bhd

Thean Chye had reportedly resigned this Wednesday from his assistant professor position at Johor’s Southern University College, with local daily Sin Chew Daily reporting today that he claimed to have quit the post due to public order and that he could not do anything if his adult son does not want to follow his advice.

Sin Chew Daily reported JJPTR headquarters’ office staff as saying that its founder would not be showing up due to security considerations.

The paper also said that the staff at the JJPTR’s Penang headquarters did not know much about the new scheme, with one employee reportedly saying that it was unclear when the new plan would kick in and that its tentative initiation date would be next week.

The employee was also reported saying that JJPTR needs to implement the new plan to get funding in order to refund the capital of previous investors, adding that the company has to date collected over 1,000 forms of "investors” who have yet to recoup their capital.

Many other schemes have reportedly ran into difficulties in repaying their "investors” and two other schemes including "Bai Le Men” were today reported to have collapsed.

Bukit Aman Commercial Crime Investigation Department’s statistics reportedly showed a recorded 1,883 cases of investment scams from 2015 until April 2017 that resulted in around RM379.1 million of losses nationwide.