Be careful of investment that promise high return, 18%.
KUALA LUMPUR (April 7): Koperasi Permodalan Felda Malaysia 2 Bhd (KPF2) has obtained an ex-parte Mareva injunction to freeze RM40 million worth of assets owned by ACE Credit (M) Sdn Bhd and its parent ACE Holdings Bhd, together with a proprietary injunction to stop them from dealing in the assets, for allegedly failing to honour investment agreements in which they promised guaranteed returns to KPF2.
Also named as defendants in the injunction application filed by KPF2 — a cooperative set up for second-generation Felda settlers — were two mutual directors of both ACE Credit and ACE Holdings, namely Choong Chee Meng and Chang Ai Nee. The application was filed last Thursday (March 30) and granted by the Kuala Lumpur High Court (Commercial) Judge Ong Chee Kwan in chambers on Friday.
The dispute between KPF2 and the ACE Group revolve around three investment agreements involving total investments of RM40 million, with promised returns of between 18% and 20% annually, over which KPF2 is suing the defendants for alleged breach of agreement, according to court documents sighted by The Edge.