Businessman Tay Kim Leng may be a fugitive wanted by Thai authorities but that has not stopped him from being on a roll in Malaysia.

 

Even though an arrest warrant is out in Thailand for the self-professed ‘Datuk Danial Tay’, he managed to appear on the same stage as former MCA president Ong Tee Keat and Selangor cabinet member V Ganabatirau in Malaysia.

 

Thai police estimated that the transnational online sales company Ufun Group Bhd Ltd, through its multi-level marketing scheme and Utoken crypto-currency, has cheated some 120,000 people of a sum of up to RM4.1 billion (38 billion baht), according to the Bangkok Post .

         

Ufun members sell Utoken, a digital currency, which ostensibly could be used to pay for goods and services.

 

The trail of damage Ufun left behind in Thailand has raised concerns about how widespread its activities are in Malaysia and how many may have fallen victim to the scheme.

 

In Malaysia, Ufun gained invite to notable events by demonstrating its financial clout with six-figure donations to charitable organisations.

 

Tay was a speaker at the launch of the Gateway Klang integrated development project officiated by DAP’s Ganabatirau last Sunday. The following day, Tay handed out mock cheques at an event in Genting Highlands where Ong was present.

 

When contacted, both Ganabatirau and Ong expressed surprise that they had appeared alongside a fugitive.

 

"I was invited by the developer as The Klang Gateway project is in my constituency and they had donated funds for the local community,” said Ganabatirau, who is also Kota Alam Shah state assemblyperson, told Malaysiakini .

 

"I don't know who this Danial Tay is," he stressed.

 

When contacted by Malaysiakini , Ong had this to say: "I was invited, among other recipients of charity donations. You may check my speech delivered on behalf of the recipients; nothing related to Ufun and Utoken."

 

Attempt to link Najib's son

 

Beyond Ufun's charitable face, a check by Malaysiakini found its multi-level marketing activities to be decentralised, with members touting its scheme independently but its promotional materials are often similar.

 

Some of the promotional material have even attempted to link Prime Minister Najib Abdul Razak's son, Mohd Nazifuddin, with Ufun, in a bid to lend credence to the scheme.

 

One such promotional material, widely available online, is the claim that the inception of Ufun was by one ‘Datuk Warren Eu’ and Sagajuta (Sabah) Sdn Bhd, of which Mohd Nazifuddin is a shareholder.

 

The widespread availability of this material, which include a photograph of Nazifuddin, has even led watchdog site BehindMLM to speculate whether the lack of action against Ufun by Malaysian authorities is due to its ‘VIP link’.

 

However, checks by Malaysiakini did not find any evidence directly linking Najib's son to Ufun.

 

Ufun’s modus operandi has been to sign deals with prominent companies and then use their names and personalities to promote itself.

 

Last Sunday, it signed a memorandum of understanding with the developer of the Gateway Klang project, Lagenda Erajuta Sdn Bhd, which is a subsidiary of Sagajuta (Sabah) Sdn Bhd.

 

Ufun promotional materials claimed it has a 30 percent stake in the project and that properties there could be purchased using its Utokens.

 

But a Companies Commission of Malaysia (CCM) search by Malaysiakini did not find Ufun having any direct stake in Lagenda Erajuta Sdn Bhd or Dermaga Suasa Sdn Bhd, which are the joint-venture partners for Gateway Klang.

When contacted, Gateway Klang marketing development director KK Tham denied the project had any links to Ufun's activities.

 

He added unlike Ufun's deal with Bina Puri in Thailand, the memorandum of understanding is only limited to the company being an agent introducing potential customers among its members, to purchase the property in Gateway Klang.

 

"So for example if a property agent today helps to sell our property and then something happens to the agent, it cannot be that we would also be affected," he said.

 

He added that Klang Gateway had not suspected anything as Ufun had approached the developer prior to the Thai crackdown.

 

"When the Thai incident happened, everything had already been fixed and we couldn't just cancel everything before we were certain of the rights and wrongs," he said.

 

Tham stressed the project will adhere to existing laws and the company will comply if the government were to take action in Malaysia.

 

Bina Puri becomes collateral damage

 

It will not be the first time Ufun attempted to ride on the name of other prominent companies and their personalities after having signed an agreement with them.

 

Ufun, through its associate company UTR Holding Co Ltd, had in 2014 purchased 100 units at the Bangkok Marine Resort and Spa developed by Bangkok Property Co Ltd, in which Bina Puri Holdings (Thailand) Ltd has a 20 percent stake.

Ufun then went on to advertise Bina Puri as a joint-venture partner in its Utoken scheme.

 

When police finally cracked down on Ufun, Bina Puri too fell victim to the Thai police dragnet.

 

On Tuesday, Bina Puri was forced to issue the following statement: "Bina Puri reiterate that we are not linked at all with Utokens and never participated in any promotions of Utokens or any other promotions by Ufun Group or company related to Ufun.”

 

The company added that it had repeatedly protested against Ufun's usage of its name since last year.

 

However, the statement came too late, as Bina Puri's Thai associate company had its bank accounts frozen by the authorities on grounds that funds used by Ufun to purchase its properties were from cheated members.

 

Bank Negara Malaysia, in its financial consumer alert, lists Ufun Club as an unlicensed activity but Malaysian police has yet to act on the business, citing the wait for more information from Thai authorities.

 

A CCM search by Malaysiakini found the main Ufun entity in Malaysia is Ufun Store Sdn Bhd, with the 40-year-old Tay being among the directors.

 

The shareholders of the company are Lee Kuan Ming and Eu Hin Chai, who is also referred to as ‘Datuk Warren Eu’ in Ufun promotional material, with a 50 percent stake each.

 

Thai police have a warrant for the arrest of both Tay and Lee, as well as one Wong Sing Hua, all of whom are Malaysians, according to Thai reports.

 

A check by Malaysiakini in the database of royal title recipients did not find Tay's or Eu's name.

 

Interpol roped in for M'sian fugitives

 

Ufun's operation is transnational and involves several personalities of different nationalities but Tay has been the public face in Malaysia and also its spokesperson, following the Thai crackdown.

 

Tay in a public address via video on April 22 had urged Ufun members, particularly those in Thailand, to remain calm.

"I would like to advise Ufun members not to believe in any rumours that have been spreading. Give us some time to get through this and our lawyers will resolve it,” he said.

 

"The most important thing is to trust us. Ufun and its members will get through this together."

 

He also issued a gag order on all Ufun leaders in Thailand from speaking to the media.

 

In the latest development, Thai reports say police in the country are now seeking Interpol's assistance to nab the fugitives and have also reportedly made contact with Malaysian police.

 

All eyes are now on whether Malaysian authorities will initiate a similar crackdown on Ufun here, where thousands of investors share a similar fate with their Thai counterparts.