On July 25, 2024, ten individuals were charged in the Kota Kinabalu Sessions Court for their involvement in an organised crime syndicate that defrauded MBSB Bank of over RM24.2 million. Among the accused are two bank managers, Irene Chin Nyuk Thien and Christina @ Caroline Pianus Etip, who are alleged to have been instrumental in the fraud.
The group, which includes a mix of individuals such as teacher Subramaniam Thangavelu, contractor Josepin J Langkan, and several pensioners and unemployed individuals, has been accused of carrying out a heist involving fixed deposit accounts at MBSB Bank. The crime is said to have taken place between April 26 and July 10, 2024, at the bank’s branch in Kota Kinabalu.
The bank employees involved allegedly assisted the gang in manipulating customer accounts, using fake identification documents (MyKads) and altering biometric fingerprint scanners to authorise fraudulent withdrawals. The crime syndicate had planned the operation meticulously over several months, with police stating the fraudulent activity began late last year.
The suspects, charged under Section 130V(1) of the Penal Code for being members of an organised crime group, face a potential jail term of five to 20 years upon conviction. They are accused of siphoning off money from fixed deposit accounts, manipulating bank systems, and using fake credentials to withdraw funds.
Bukit Aman Commercial Crime Investigation Department (CCID) director, Datuk Seri Ramli Mohamed Yoosuf, confirmed that this case marks the first time the Security Offences (Special Measures) Act (Sosma) has been invoked for a commercial crime. In addition to the bank employees, police arrested several other suspects, including a businessman with the title “Datuk” and other individuals connected to the crime.
The case has garnered significant attention due to the scale of the fraud and the involvement of trusted bank employees. Police investigations are ongoing, and all ten accused have been denied bail. Further hearings are set for September 13, 2024.
Court Proceedings and Defence
During the court proceedings, no pleas were recorded from the accused. Various defence lawyers were appointed to represent the suspects, including Datuk Ram Singh for Subramaniam, and Hairul V Othman for Josepin. The case continues to develop as prosecutors prepare for further legal action.
The incident, involving over RM24.2 million stolen from customers’ fixed deposit accounts, began when account holders reported suspicious withdrawals made in Kota Kinabalu, although they had never been to the city. Investigations revealed the fraudulent transactions, leading to the arrests of the suspects.
With several high-profile arrests, including bank officers and business figures, this case highlights the vulnerability of financial institutions to organised crime and the growing trend of insider fraud.