From OffshoreAlert

The liquidators of Cayman Islands-based Spectra SPC, which claims to be owed more than $337 million by an Asian group – Malaysia’s City Credit – that allegedly perpetrated a $1 billion Ponzi scheme, are suing the Fund’s auditor, PricewaterhouseCoopers. The Fund was operated by Hong Kong-based, Chinese national Clement Tung.

For much more on this story go to: OffshoreAlert

Lee Shih’s Post

Lee Shih

Dispute Resolution Partner | Managing Partner of Lim Chee Wee Partnership | Member of ICC FraudNet8mo

Liquidator of Malaysia’s City Credit Investment Bank pursues orders to aid investigation into global US$1 billion Ponzi scheme I read the OffshoreAlert posting on the Liquidator of the Labuan-incorporated City Credit Investment Bank Limited now pursuing US bank records. This is part of his investigation into a US$1 billion Ponzi global fraud. Last month, CheeChien Wong 黄挚谦 and I acted for the petitioning creditor in successfully securing the winding up order against City Credit Investment Bank and to have Luke Furler of Quantuma appointed as the liquidator. https://lnkd.in/gdDbGvvU

AI Overview –

“City Credit” in Malaysia refers to City Credit Investment Bank, which is currently under liquidation due to its alleged involvement in a $1 billion Ponzi scheme. Liquidators are pursuing investigations and legal actions related to the scheme. Separately, Citibank Malaysia is a licensed commercial bank operating in Malaysia, but it is not connected to the City Credit Investment Bank. 

Here’s a more detailed explanation:

• City Credit Investment Bank:This entity is not a legitimate financial institution in the way that Citibank is. It was involved in a large-scale alleged Ponzi scheme, and its liquidators are actively working to investigate the matter and pursue legal recourse. 
• Citibank (Malaysia):Citibank Berhad is a well-established foreign bank in Malaysia with a strong presence and a wide range of financial services. 
• Ponzi Scheme:The scheme involving City Credit Investment Bank is described as a Ponzi scheme, which is an investment fraud that pays existing investors with funds collected from new investors, rather than from legitimate profits. 
• Liquidators’ Actions:The liquidators of City Credit Investment Bank are taking steps to investigate the financial dealings of the bank and pursue legal action against those involved. 
• Legal Proceedings:The liquidators are involved in legal actions, including pursuing orders to aid the investigation into the alleged Ponzi scheme. They are also involved in a lawsuit against the fund’s auditor, PricewaterhouseCoopers, for alleged audit misrepresentations.