JOHOR BARU: Police arrested three men on charges of running a loan shark syndicate in Johor Bahru with loans worth RM 1.5 million.
Johor Bahru Police Chief Command Datuk Ayob Khan Midin Pitchay said the suspects, between the ages of 27 and 47, were arrested during an operation in the Johor Bahru area around 17:00 on 18 August.
“The syndicate has been operating since the end of 2019 and is hunting small traders. They offered loans ranging from RM1,000 to RM100,000 with monthly interest rates ranging from 8% to 15%.
“Our investigations have shown that a total of 80 borrowers have become regular customers,” he said during a press conference at the Johor police headquarters on Monday (August 23).
Komm Ayob also said the case was being investigated under section 5 (2) of the Usurer Act 1951, which provides for a maximum penalty of RM1 million and five years in prison.
Meanwhile, in an unrelated case, police arrested a 41-year-old man for splashing red paint on four houses in Batu Pahat and Segamata around 17:00 on 17 August.
“The investigation revealed that the suspect was hired to paint the defaulters’ house red. He was paid 350 ringgit for each house.
“We seized the suspect’s car, as well as his mobile phone, which contained video recordings of his actions,” said the communicator Ayob.
The case is being investigated under section 29AA of the Moneylenders Act 1951, which provides for a maximum imprisonment of up to two years or a fine of up to RM20,000, or both if convicted.
He was also under investigation under section 427 of the Penal Code for damages that carry a prison sentence of one to five years, or a fine, or both if convicted.