Top Malaysian MLM Scams

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Over the past decade, Multilevel Marketing (MLM) companies have been mushrooming with more people looking for alternate income opportunities and flexibility. There has been many companies which have been established to try and manipulate these people by promising ‘unlimited income’ and ‘quality of life’ which have since been identified to be scams.

These businesses either require the members to invest unreasonably or use the illegal pyramid scheme to attract investors.

Sunshine Empire – This company boasted well-groomed executives who were young and drove luxury cars. They had a office in KUB Building in Bukit Bintang with an impressive showroom. It organized and run a Ponzi scheme business and is now defunct. Its leaders are now in jail.

Steven’s Corner – As one of the most popular mamak shops in Malaysia in history and 30 years of being in the business, many were interested when they were invited to be part of this growing franchise. Investment started from RM3,000 with a  promise of RM150 monthly return. After a few months, the payment stopped and a whole fiasco unfurled.

Mobilewallet – This MLM company went into the market with a bang when it claimed to be paired with major corporations that include Maybank and even Telekom Malaysia. It then stopped paying back their members who have been cheated by the unfair agreement signed.

Island Red Café – This is perhaps one of the biggest scams that took place where members had to pay RM6,00 up front with a promise of 5% monthly returns. The member was named as a shareholder in the ROC but eventually, they lost all their money when the company closed down and they went into exile.

SITO – Short for Selangor International Trading Organization, it claimed that the Selangor state government had shares that sold bottled water and water-filters, among others. Apparently, their water had more oxygen which could have medicinal effects for the body. It has since closed and rebranded.

GoldQuest – This is just one of the many gold investment MLMs which have been going around promising high returns for investing into gold, said to be the most stable form of investment. GoldQuest has changed names several times while there has been many others which have since been illegalized.

Swisscash – This is one of the biggest scams that ever happened which was an investment scheme which involved many types like foreign exchange, commodities and such. It has since been closed down by the Securities Commission of Malaysia.

Lampe Berger – This is perhaps one of the biggest brands in perfumery. It has more than 100 years of history in France together with its sister brand, Estebel. Previously, it promised lucrative income for those who find members to join its MLM scheme. Today, it has its own retail arm that sells the perfume and accessories at shopping malls.

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Author: james

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