MYAirline founder fails to strike out 15 investors’ lawsuit

MYAirline co-founder Goh Hwan Hua failed in his bid to nullify a lawsuit that was filed against him by 15 investors over his separate business.

The Kuala Lumpur High Court this afternoon dismissed the application by Goh and four other defendants to strike out the civil action over the alleged failure to pay monthly redemption value sums of over RM8 million linked to I-Serve Online Mall Sdn Bhd (Isom).

Judge Adlin Abdul Majid ruled that the matter is not suitable for striking out as several issues required full ventilation via full trial.

She said that among the issues that need full trial are whether Goh and the four defendants have committed fraud as alleged by the 15 investor-plaintiffs.

She then ordered Goh and the four defendants to pay RM8,000 costs to the plaintiffs.

Adlin also set the full trial dates for nine days next year, specifically Oct 14 and 15, 21 to 23, and Dec 16 to 19.

She also fixed the matter for further case management on Jan 24 next year over the plaintiffs' bid to amend the statement of claim in the suit.

Lawsuit over damages, losses

According to the suit, the 15 individuals are suing Goh and the other four defendants - Isom, Bright Moon Venture PLT (BMV), QA Smart Partnership PLT (QAS), and Trillion Cove Holdings Bhd (TCH) - over an alleged breach of fiduciary duties and losses that were allegedly suffered by the investors.

The plaintiffs, aged between 58 and 74, claimed that in conference calls with them, Goh had representations over ongoing issues faced by Isom and the impact it would or would not have on the investors’ monthly returns.

The 15 individuals pointed out that Isom, TCH and the other firms were raided by Bank Negara Malaysia on Nov 11, 2021, and that a freezing order was allegedly issued against the companies.

The plaintiffs are seeking repayment of the RM8 million subscription price as well as repayment of the owed monthly redemption arrears and five percent annual interest on any awarded judgment sum, among other reliefs sought.

All five defendants have previously filed their statements of defence last year against the lawsuit.

Goh is represented by law firm Mathews Hun Lachimanan, while counsel from Chetan Jethwani & Company appeared for Isom and TCH.

Meanwhile, law firm D’Cruz & Sia is acting for BMV and Qas.

Counsel Amanda Sonia Mathew appeared for the 15 investors.

Unlicenced deposits

On Sept 1 this year, Bank Negara mentioned via several media statements that it had imposed an RM50 million compound against i-Serve Group for accepting deposits without a licence.

The central bank said it imposed the compound for seven entities under the i-Serve Group per Section 137(1) of the Financial Services Act (FSA) and for money laundering under Section 4(1) of AMLA.

It said the compound was imposed on Oct 19 last year with the written consent of the public prosecutor under a joint enforcement action that followed on the heels of the central bank's probe, which found that the offences were conducted between June 2018 and September 2021.

The seven entities are Isom (RM12.5 million), i-Serve Technology and Vacations Sdn Bhd (RM12.5 million), QA Smart Partnership PLT, QA Elite Partnership PLT, QA Premium Partnership PLT and MM2217 PLT and Valuewise PLT (RM5 million each).

Bank Negara added that the entities had paid the compound on Nov 16.

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