Company behind failed agarwood investment scheme threatens legal action against MalaysiaNow

The company behind a purported agarwood investment scheme in Thailand, returns from which never materialised, has threatened legal action against MalaysiaNow over its coverage of the case, accusing the portal of defamation and the publication of false and misleading information.

In a notice of demand sent to MalaysiaNow by its lawyers, Asia Plantation Capital (APC) also claimed that the article in question, “180 fleeced of RM22.6 million after failed agarwood investment in Thailand”, had been published with the intention to prejudice its right to a fair trial in the investors’ ongoing court action against it.

“The publication of the said article has adversely and materially affected our client’s position in the ongoing court action,” the letter by the lawyers read.

“Our client reserves all of its rights to commence contempt proceedings against you.”

In the article published on March 3, MalaysiaNow reported that 180 individuals had suffered losses of more than RM22.6 million due to the project.

The case is understood to have begun as far back as 2011 when APC began advertising about investments in an agarwood plantation on land obtained through lease in Sakon Nakhon, Thailand.

MalaysiaNow obtained documents and reports showing that the investment promised lucrative returns, while some victims had made transactions of over RM500,000.

Once the contract was signed, though, no updates were given and no word was heard from APC until it was contacted by the victims themselves.

In 2020, a group of 60 to 70 victims lodged a police report against APC which was later classified as no further action.

The victims then took the case to court, seeking an order for the police to re-investigate the case under Section 420 of the Penal Code. A suit was also filed against the company two years ago, case management of which will take place on March 31.

In its letter of demand to MalaysiaNow, APC gave the portal seven days to cease and desist from publishing further reports about the company, delete the existing article from the site, and issue a public apology.

“Take notice that in the event that you fail to comply with our client’s demands, we have our client’s instructions to take the necessary legal action against you without further reference to you and to hold you liable for the costs arising therefrom,” the letter said.

Checks show that APC’s website has been shut down.