Originally Posted by
Owen Platt
Reading these comments I think it must be remembered that Central Banks are not in place to prosecute possible wrongdoers but to ensure the stability of the local economy and at the same time to protect its own citizens from fraud. As far as those who 'loaned' monies to Pips are concerned, an attitude of "caveat emptor" will prevail in the eyes of Bank Negara. They have achieved their objective i.e. the closure of Pips and it is the state prosecutor who has filed charges, not the bank.
The charges of money laundering, which are, incidentally, also charges of fraudulent conversion and thus of fraud, pertain to transactions that took place within Malaysia.
Whether any other jurisdictions are considering action I know not but, strictly speaking, it could only occur if a defrauded investor filed an official complaint.
Compared with the theoretical indebtedness of the company, the Numbers on a Screen, I believe that there will be only a miniscule amount left over making any private lawsuit a valueless exercise.
There is much anticipation concerning the upcoming trial but I feel that it is unlikely that a great deal will be revealed - Malaysia will be content with having closed down Pips and effectively preventing the Marsdens from operating again within their borders.