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Directors of Island Red Cafe Was Fined And Jailed For RM1 Million Fraud

On 12 August 2011, the Judge Aslam Zainuddin  of Sessions Court, sentenced the Executive Director and Director of Island Red Cafe Sdn Bhd to one day imprisonment and fine of RM90,000 and RM70,000 respectively after they pleaded guilty to two counts of cheating and misleading 93 investors of over RM1mil in an Island Red Cafe programme.

The offence was committed at the company’s premises in Pandan Indah between Jan 1, 2008 and Feb 28 2010.

They were found guilty for offering shares of the company to the public through the programme although at that time, it was not involved in buying and selling shares.

Both of the Syarikat Island Red Cafe Franchise Sdn Bhd directors were close related as they are Teow Wooi Huat, 45(executive director -father) and Teow Chee Chow(director-son).

They were charged under  Section 366(3) of the Companies Act 1965 punishable by a maximum of RM30,000 fine or seven years jail or both upon conviction.

For the first offence, Teow and Chee Chow were each sentenced to a day in prison and fined RM20,000 in default of 20 months’ jail.

They were also slapped with a day in prison and fined RM70,000 and RM50,000 respectively – in default of 30 months jail – for the second offence.

I assume the Island Red Cafe case was close as justice has been served.

On an unrelated case on 25 December 2006, Nammad Amruzar Mohd Nawi, 23, was found guilty for stealing a pack of 1kg Milo which cost RM12.90 from a supermarket  and was  sentence to jail for four months and a fined of RM2,000 vs For cheating 93 people for RM1.04 million, their  fine is only RM160.000 plus one day jail sentence!

Do read What Happen to Steven’s Corner and Island Red Cafe

What do you say?

This entry was posted on Thursday, August 18th, 2011 at 10:43 pm and is filed under Scam. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.

3 Responses to “Directors of Island Red Cafe Was Fined And Jailed For RM1 Million Fraud”

  1. Will they return my RM 300???

    What about other people who invest as shareholder?

    Really unfair.

  2. From here, I can conclude that, in Malaysia, money does matter: it can buy you out of a long jail sentence. Although it is not right to steal, the thief could be resorting to stealing because the children needs food at home – something like Les Miserables? I could be wrong – he could be shoplifting for the thrill? What was the news about him?

  3. hi Alan,
    I read today newspaper – Sin chew daily on page 25 (22 Nov 2012), this two father and son directors have setup a new company call MBI. They are not only look for Malaysia market but according to the newspaper said they are now aim for one hundred oversea country market.
    The page 25 have both of them photo and new company launch info.
    Just silent one year after the court decision and they are back for even bigger plan !!!
    I was wondering why sin chew still help them to get publicity? Is money really more important?
    Will they going to run a proper business or more victim will occur again? Go to page 25 and see yourself.