Chinese company loses RM2.6 million in thorny frozen Durian con

A company in China has lost RM2.6 million (approximately SGD$793,000) in a fraudulent deal to purchase frozen Musang King durian from Malaysia.

According to a statement by Datuk M. Kumar, the police chief of Johor, the company’s manager, a Chinese national, lodged a police report after transferring the funds to a suspect for the purchase of 3,840 cartons of frozen Musang King durian, but the goods were never delivered.

Chinese-based company dumped in fake Musang King deal

The manager had met the suspect, also a Chinese national, agreed to the transaction after convincing the victim using an approved permit (AP) that would grant him permission to bring the fruit into China.

This permit was allegedly owned by a Malaysian fruit import and export company, Kumar noted.

Following the suspect’s instructions, the company transferred the RM2.6 million to the bank account of another Malaysian-based company on July 5, with the expectation of receiving the goods within a month.

However, when the delivery was not made and when the suspect went radio silent, the company grew suspicious.

The manager then asked a friend in Malaysia to locate the company supposedly holding the permit, but the firm denied any involvement with the suspect.

The manager subsequently made a trip to Malaysia just to file a police report, as the bank account used in the fraudulent transaction was linked to a Malaysian-based company.

The case is currently under investigation under Section 420 of the Penal Code for cheating and Section 411 for handling stolen property, as reported by NST Online.

Comm Kumar advised the public to be cautious when dealing with unfamiliar individuals or companies and to verify credentials with relevant authorities before making any financial transactions to reduce the risk of being a scam victim.