A GROUP of 111 investors has launched a RM20.5 million High Court lawsuit against QEW Group Berhad and two of its directors, alleging they were induced into a purportedly secure and Shariah-compliant investment scheme through false representations before dividend payments ceased and their capital became unrecoverable.
The civil action, filed on 3 April through Messrs. Azri & Co., names QEW Group Berhad together with its directors, Datuk Dr Muhamad Iqbal Mohamad and Mohd Fairoz Muhammed, as defendants.
The plaintiffs, aged between 28 and 89, collectively claim they invested RM20.5 million in the RPS-i Investment Scheme between 2022 and 2024 after being assured that the programme would deliver consistent monthly dividends while safeguarding their capital.
According to the statement of claim, the defendants promoted, marketed and managed the investment scheme while making express and implied representations regarding its structure, dividend mechanism, capital protection and compliance with Shariah principles.
"The defendants also represented that the company Tawafuq Consultancy Sdn Bhd was appointed as the agent and Shariah advisor for the administration and operation of the investment scheme," the plaintiffs stated in their claim.
"The defendants also stated that the investment scheme was not based on the Musharakah or Mudharabah concepts... therefore, there was no element of loss-sharing or risk to be borne under the scheme.
“We state that due to the representations provided by the defendants, we agreed to invest in the investment scheme and made investment capital payments to the first defendant according to our respective investment amounts."
The investors contend that although dividends were initially paid as promised, payments were subsequently delayed, reduced and eventually stopped altogether without any reasonable financial explanation.
They further allege that when concerns were raised, the defendants maintained that dividend payments were subject to the company's absolute discretion, a condition the plaintiffs claim was neither adequately disclosed nor presented as a principal investment risk before funds were committed.
The plaintiffs are seeking a court order compelling QEW Group Berhad to repay RM20.5 million in investment capital.
They are also seeking declarations that the two directors acted negligently and participated in a fraudulent scheme involving investors' funds.
In addition, they are seeking joint or several indemnity orders against the directors for RM20.5 million in special damages arising from alleged negligence, fraudulent misrepresentation and conspiracy, together with RM1 million in general, exemplary and aggravated damages.
Counsel for the plaintiffs, Dr Hizri Hasshan, confirmed that Judicial Commissioner Asmadi Hussin has fixed 6 July for further case management after being informed that the defendants had filed a third-party notice.
The notice seeks to bring AUF MBZ Consortium PLT into the proceedings as a third-party defendant.
The latest civil action follows separate criminal proceedings initiated on 20 February, when AUF MBZ Consortium PLT, represented by entrepreneur Datuk Mahadi Badrul Zaman, was charged in the Sessions Court with two counts of conducting a securities business without a licence.
Muhamad Iqbal was separately charged, in his capacity as a director of QEW Group Berhad, with allegedly abetting the company's unlicensed securities activities.
The allegations contained in the civil suit have yet to be determined by the High Court, and the defendants will have the opportunity to respond through the judicial process. - June 19, 2026
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