FORMER Kyaputen Sdn Bhd director Muhamad Fadzli Jamaludin has been sentenced to five years’ imprisonment after the Kuala Lumpur Sessions Court convicted him of operating an unlicensed fund management business and committing money laundering offences.
Fadzli was found guilty on 12 charges after the court ruled that he had failed to cast reasonable doubt on the prosecution’s case.
The Securities Commission Malaysia (SC) first charged Fadzli on November 9, 2023, with three offences under Section 58(1) of the Capital Markets and Services Act 2007 (CMSA) for allegedly holding himself out as conducting fund management activities without the required licence.
He later faced nine additional charges on November 29, 2023, under Section 4(1)(b) of the Anti-Money Laundering, Terrorism Financing and Proceeds of Unlawful Activities Act 2001 (AMLATFPUAA) for alleged money laundering offences.
The two cases were heard together.
During the trial, the prosecution presented evidence from 23 witnesses, including six victims who collectively suffered losses totalling RM1.263 million.
The offences took place between August 2018 and April 2020 in Kuala Lumpur and Melaka.
Upon being called to enter his defence, Fadzli elected to testify under oath but did not call any additional witnesses.
Sessions Court Judge Puan Hamidah Mohamed Deril, in delivering her decision, found that Fadzli had failed to raise reasonable doubt against the prosecution’s evidence.
She subsequently sentenced him to five years’ imprisonment for each of the 12 charges, with all sentences to run concurrently.
Under Section 58(1) of the CMSA, individuals convicted of carrying out fund management activities without a licence may face a fine of up to RM10 million, imprisonment of up to 10 years, or both.
For money laundering offences, the law provides for imprisonment of up to 15 years and a fine of at least five times the value of the unlawful proceeds or RM5 million, whichever is higher.
The SC was represented by Deputy Public Prosecutor Mageswary Karroppiah and prosecuting officers Low Wen Zhen, Jonathan Chin Ter Yang and Mark Rohan Mahadevan, while Fadzli was represented by defence counsel Puvarasan Balaiyah.
The SC reminded investors that fund management is a regulated activity requiring proper licensing and urged the public to deal only with individuals and entities authorised by the regulator when engaging in financial activities.
The commission said investors should verify the licensing status of fund managers before placing their money with any individual or company offering investment-related services. - July 15, 2026
