ACE Holdings Bhd aka ACE Group – RM814 Million Scam
In April 2019, the Securities Commission Malaysia (SC) told the public that ACE Holdings Bhd had issued corrective disclosures on 1 April 2019 after the sections the watchdog had issued on 11 December 2018.
As a result, ACE Holdings Bhd aka ACE Group had to issue an unconditional redemption offer to all investors who had placed private investments between PPM 2015 and 2018.
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DMCA Notice by ACE Holdings BHD, aka ACE Group
It seems ACE Holdings BHD has hired the services of a Reputation Agency to try and suppress this page. Yesterday, they file a Copyright Notice with Google to take down this link from Google’s search engines.
You can see the notice at – https://lumendatabase.org/notices/28231736
Since this is a critical review and a newsworthy story, ACE Holdings is not aware that this falls under the fair usage policy of the copyright law. Appropriate counter notice has been submitted with our contacts at Google and we’ve been told that this article will be reinstated with Google within 7 business days.
Due to this attempt by Internet Removals Pte Ltd on behalf of ACE Holdings, we’re now looking deeper into this shady company and will soon be publishing our latest findings on Gripeo, and our other network sites plus a handful of friendly portals and media houses. Our intention is to bring the facts and maximum exposure to potential customer (and victims) of ACE Group.
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Note that ACE Holdings Bhd aka ACE Group had raised RM814 million during this period and now had to return the entire sum to the investors.
The Securities Commission Malaysia released a notification about this matter on 4 April 2019 for the investors. At the time, they had 21 days to submit their application to get the refund.
Also, SC had recommended the investors to seek professional financial advice in case they had any doubt or confusion regarding the matter.
Why Did ACE Holdings BHD (ACE Group) Get Sanctioned?
The SC had sanctioned the private investment firm for using false and misleading statements while promoting its fund-raising projects.
For example, the company used to market one of its fund-raising projects as “ACE Credit Sdn Bhd offers potential subscribers a stable investment in the consumer credit industry with security dividends from an increasing cash flow.”
Their promotion also claimed that it had a business model which generates recurring income with constant growth and a “rising standard of living”.
ACE Holdings Bhd aka ACE Group modified it to “AHB provides investors with a unique investment opportunity in the consumer credit industry”.
ACE Holdings Bhd had been trying to acquire Apex Equity in 2018-19 and in February 2019, the SC granted a conditional approval for the proposed merger between Mercury Securities Sdn Bhd and Apex Equity.
What was the condition for this approval? The SC wanted ACE Investment Bank Ltd to exit the deal. It was a subsidiary of ACE Holdings Bhd which is now popular as ACE Group.
Furthermore, ACE Investment Bank Ltd didn’t agree to these terms. It was unclear if the SC had explained the reason why they imposed such a specific condition onto the deal.
Apart from the changes I mentioned above, ACE Holding Berhad also disclosed that its present authorized and paid up share capital was at 50 million ordinary shares of RM1 each. Prior to the sanctions, they used to claim the figure was 100 million ordinary shares of RM1 each.
Also, the company changed a statement for PPM 2018 to reflect the raising of funds exceeding RM250 million under PPM 2016.
Furthermore, they used to claim that they had raised funds for investment in Islamic financial products such as Islamic capital market activities, Islamic pre-IPO investments and the Islamic credit industry.
In reality, they used RM142.47 million for shares, RM64.7 million for internal financing, RM33.72 million for property, RM79.95 million for retail financing and RM423.42 million for corporate financing.
Clearly, they didn’t use the funds for what they had raised them.
At the time, ACE Holdings Berhad had shares in
- OCR Group Bhd
- ConnectCounty Holdings Bhd
- Sanchem Holdings Bhd
- Apex Equity Holdings Bhd
- Technodex Bhd
People Behind ACE Holdings Berhad: Board of Directors and Owner:
The Group Managing Director and ACE Group CEO is Annie Chang aka Chang Al Nee. She is also the founder of the company.
Similarly, Choong Chee Meng, Calvin is the Group Executive director. And Yeo Wee Sun, Sunny is the Group Director, Group Managing Director Office.
The Group Chairman of ACE Holdings Bhd is Ybhg. Tan Sri Dato’ Seri Dr Ting. Also, Tuan Yang Terutama Tun Dato’ Seri Utama Ahmad Fuzi Bin Haji Abdul Razak is the Eminent Shareholder of ACE Group.
Conclusion: Should You Invest with ACE Holdings Bhd (ACE Group)?
After seeing how ACE Holdings Bhd lied to its investors in the past, it’s very difficult to recommend this company. They have faced reprimands from the SC Malaysia and had to return millions.
Certainly, it’s no small matter.
Seeing the history of the company, it would be best for investors to steer clear of this investment firm. There are plenty of better and more reliable investment companies in Malaysia. You don’t have to choose the one with a terrible past.
ACE Group aka ACE Holdings Bhd had return RM814 million to investors due to making false promises and claims in its promotions. The company has faced sanctions from the SC Malaysia and doesn’t have a very reliable track record.
- Sanctioned by the SC Malaysia
- Used false statements in promoting its fund-raising investments
- Had to return RM814 million to investors