PETALING JAYA, Feb 13 — Police are trying to trace the bulk of the RM55 million put up by investors in an illegal scheme after finding the bank accounts of the suspected syndicate members empty.

The money was amassed by four suspects, including a Datuk businessman, who were arrested last week after they allegedly cheated more than 1,000 people into investing in a “digital camouflage” deal purportedly endorsed by the Defence Ministry.

Selangor police Commercial Crime Investigations Department deputy chief Superintendent Mazelan Paijan said police were tracing the flow of the money out of the suspects’ accounts. 

“We have information they could have deposited the money into several other bank accounts registered under different names within Malaysia,” he said. 

“It is also likely a portion of the money was used to purchase properties, cars and other assets.”

Mazelan said there had been one new report lodged against the syndicate by a victim who had invested RM90,000.

He said police were tracking down seven other suspects.

The syndicate, operating since 2015, had managed to lure mostly civil servants and villagers in Terengganu and the Klang Valley, who parted with their savings after being promised 30 to 50 per cent returns on a minimum investment of RM10,000.

The four suspects in cutody were picked up in Puchong, Kajang and Bukit Jelutong. 

In a twist of events, it was learnt the Datuk businessman, who owned a construction company, had managed to dupe his own co-conspirators of RM14 million. 

Mazelan said the Datuk claimed he needed the money to secure a tender for an upcoming Malaysian Communications and Multimedia Commission (MCMC) tower project in Pahang. 

“The Datuk claimed he was handling the project but pocketed the RM14 million instead,” he said. 

He said the syndicate had its cover blown when a clerk, who herself had collected some RM1.7 million in “investments” from about 40 victims, did not receive her cut.

The clerk cross-checked the documents provided by the syndicate with the Defence Ministry, which included a “delivery order”, only find to find out they were forged. 

She lodged a police report in Kajang last September.