Malaysia

US charges three Malaysian state telecoms officials for alleged multimillion-dollar fraud

FBI Assistant Director in Charge James C. Barnacle, Jr., said the trio is alleged to have conducted a deliberate and calculated embezzlement scheme, falsifying corporate records for their own financial benefit.

Updated 2 months ago · Published on 20 May 2026 11:45AM

US charges three Malaysian state telecoms officials for alleged multimillion-dollar fraud
The trio allegedly impersonated a goods supplier for TM USA to capture payments from TM. - May 20, 2026

THREE former senior managers at Telekom Malaysia (USA) Inc have been charged with misappropriating over US$20 million (RM79.5 million) from the company, the United States Attorney's Office for the Southern District of New York said.

According to reports, Mohd Hafiz Lockman, Mohd Yuzaimi Yusof, and Khanh Thuong Nguyen, who were senior executives at the US subsidiary of TM, were accused of using false statements and forged records to siphon funds from the company and deceive counterparties, suppliers, auditors and supervisors in the United States on various occasions between July 2020 and February 2026.

Lockman was arrested at San Francisco International Airport, while Yusof and Nguyen surrendered to authorities in late April, and the charges include wire‑fraud conspiracy, wire fraud and aggravated identity theft.

FBI Assistant Director in Charge James C. Barnacle, Jr., said the trio is alleged to have conducted a deliberate and calculated embezzlement scheme, falsifying corporate records for their own financial benefit.

The DOJ said it declined to file charges against TM itself after the company self-reported the criminal conduct and pledged to cooperate with authorities.

The trio allegedly impersonated a goods supplier for TM USA to capture payments from TM.

The defendants were accused of diverting millions of dollars from TM into bank accounts they controlled, according to the US indictment.

On one occasion, TM was asked to ⁠approve ​a sale of eight terabytes of capacity to a US multinational for $54 million, when in fact only six terabytes were purchased.

The defendants then allegedly sold the excess capacity to other companies, diverting funds from the illicit sales ⁠through a sham entity, the DOJ said.

Besides that, it said they had allegedly carried out a payroll fraud scheme by impersonating former employees and interns of the US subsidiary and diverting their salaries into bank accounts they controlled.

TM conducted an internal investigation into the US subsidiary and the defendants, uncovered the fraud, and voluntarily reported it to US prosecutors. – May 30, 2026

Related News

Malaysia / 18h

Former investment bank CEO charged with RM139.8m fraud

Opinion / 1w

Wikipedia has become compromised by intelligence agencies and ideological capture

Malaysia / 2w

A stranger’s helping hand shows the Malaysia beyond politics (video)

Malaysia / 2w

Thai border town Dan Nok fades as new border crossing diverts Malaysian traffic

Opinion / 2w

Is the South China Sea moving from a ‘zone of peace’ towards the next conflict area?

Malaysia / 3w

Malaysia must prepare for the effects of the Gulf War

Spotlight

Malaysia

Private university CFO charged over alleged RM6.56m CBT

World

Unleashed 60kg dog in Hong Kong mauls poodle, bichon frise to death (video)

Malaysia

Three family members killed after Immigration truck runs red light

Malaysia

Woman, believed to be foreigner, allegedly causes disturbance at KLIA (video)

Opinion

Has DAP chosen the path to a slow death?

Malaysia

Three years of bullying at school puts 15-year-old at risk of hearing loss

By Alfian Z.M. Tahir

Malaysia

Police officer's wife cries, pleads for leniency after misusing disabled child's account

Malaysia

Organised cybergroups likely behind rise in racial hate on social media

You may be interested

Malaysia

Private university CFO charged over alleged RM6.56m CBT

Malaysia

Budget 2027 to drive Malaysian products into global markets, says Amir Hamzah

Malaysia

Police officer's wife cries, pleads for leniency after misusing disabled child's account

Malaysia

BN remains committed with unity government till end of term

Malaysia

Haze risk persists as Johan Setia records unhealthy air quality

Malaysia

Govt open to study integrating GST, SST

Malaysia

PMO directives dictated Jana Wibawa contractor selections, High Court told

Malaysia

Maritime expert urges MACC to break silence on petroleum cargo commingling issue