THE Securities Commission Malaysia has initiated criminal proceedings against the founder of AUF MBZ Consortium PLT and two directors of separate unlisted public companies, in what marks a significant enforcement action concerning alleged unlicensed capital market activities.
Datuk Wira Mahadi Badrul Zaman, founder and partner of AUF MBZ Consortium PLT, was charged at the Kuala Lumpur Sessions Court with two counts under Section 58(1) of the Capital Markets and Services Act 2007.
The charges relate to the alleged conduct of dealing in securities without holding a Capital Markets Services Licence issued by the regulator.
According to the Commission, the offences are deemed to have occurred in Selangor between 14 June 2021 and 9 August 2023 under the first charge, and between 3 September 2021 and 15 February 2024 under the second charge, pursuant to Section 367(1) of the Act.
Mahadi pleaded not guilty to both charges, which were heard before two separate Sessions Court judges.
For the first charge, Sessions Court judge Tuan Azrul bin Darus granted bail of RM50,000 with one local surety.
He was also ordered to surrender his passport and to report monthly to the SC’s Investigating Officer until the conclusion of the trial.
In the second proceeding before Sessions Court judge Norma Ismail, Mahadi was again granted bail of RM50,00 with one local surety, subject to identical additional conditions.
In related proceedings, Tan Sri Datuk Dr Mohd Daud Bakar, former director of unlisted public company Energy Eco Berhad, was charged with one count of abetment under Section 58(1) read together with Section 370(c) of the Act.
The charge alleges that Energy Eco Berhad abetted AUF MBZ in relation to the first principal offence.
Daud, who was acting as the company’s representative at the material time, is deemed to have committed the offence under Section 367(1).
He pleaded not guilty before Judge Norma Ismail and was granted bail of RM50,000 with one local surety.
He was similarly ordered to surrender his passport and to report monthly to the SC’s Investigating Officer.
Also charged was Datuk Muhamad Iqbal Mohamad, a director of another unlisted public company, Qew Group Berhad.
He faces a count of abetment under Section 58(1) read together with Section 370(c) of the Act, in connection with Qew Group Berhad’s alleged role in abetting AUF MBZ in relation to the second principal charge.
As a director at the material time, he is deemed to have committed the offence under Section 367(1).
Iqbal was granted bail of RM50,000 with one local surety and subjected to similar additional conditions as imposed on Tan Sri Daud.
If convicted, all three accused individuals face a potential fine not exceeding RM10 million, imprisonment for a term of up to 10 years, or both.
In a statement, the Securities Commission reminded investors to exercise caution before parting with their monies or committing to investment opportunities.
It noted that its Investor Alert List is regularly updated to assist the public in identifying unauthorised or unlicensed platforms, companies and individuals.
AUF MBZ and Mahadi had previously been placed on the regulator’s Investor Alert List on 26 February 2024.
The Commission urged members of the public with further queries to contact its Consumer and Investor Office.
It reiterated its statutory mandate as the sole regulatory authority responsible for supervising and developing Malaysia’s capital markets, including oversight of exchanges, clearing houses and all persons licensed under the Capital Markets and Services Act 2007. - February 23, 2026
