Bank manager jailed over RM1.58m investment fraud

Photo courtesy of The Star

A former relationship manager at an international bank in Kuching has been sentenced to seven years in prison, fined RM40 million and ordered to receive 24 strokes of the cane after admitting fraud and money laundering involving eight elderly customers.

Non-existent bond scheme targeted seniors

Kho Yung Kang, 39, pleaded guilty at the Sessions Court to 16 counts of cheating under Section 420 of the Penal Code and eight counts under the Anti-Money Laundering Act.

The court heard that Kho defrauded eight senior citizens aged between 60 and 75 of a combined RM1.58 million. The offences took place between September 2022 and February 2024 while he was working as a relationship manager at the bank.

According to the prosecution, Kho promoted a bond investment that did not exist and promised customers returns above those available from ordinary products. He then persuaded the victims to sign documents or provide biometric verification, believing they were authorising genuine investments.

Money transferred for personal use

Instead, the funds were moved without the customers’ informed consent. Transactions were carried out using DuitNow, interbank transfers and cashier’s orders, with money sent to third-party accounts and later used for Kho’s personal benefit.

Judge Iris Awen Jon imposed prison terms of between three and four years and one stroke of the cane for each cheating charge. Those sentences will run concurrently from Kho’s remand date of 23 May 2025.

For each of the eight money-laundering offences, he received a concurrent three-year term and a RM5 million fine, with four months’ jail in default. Kho was unable to pay the fines. The detailed sentencing outcome reported by the court amounted to seven years’ imprisonment, RM40 million in fines and 24 strokes.

Court hears case without defence counsel

Deputy public prosecutors Chuah Kai Sheng and Maryam Jamielah Ab Manaff conducted the case. Kho was not represented by a lawyer when the sentences were handed down.

The case highlights the severe consequences for financial professionals who misuse customer access and trust, particularly when elderly clients are targeted through products presented as secure investments.

What it means for foreigners in Malaysia

Foreign residents using Malaysian banks should independently confirm unfamiliar investment products through official bank channels before authorising transfers or biometric approvals. They should retain transaction records, question requests involving third-party accounts and report suspicious activity quickly to the bank and police.

3 September 2026