Alphacapital Directors Found Guilty Of Contempt

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 Syed Mahadzir Fadaak Syed Jamil Fadaak and Erna Elliyana Rosli were convicted of contempt of court after failing to comply with a Mareva injunction.
(Form left) Lawyers Rajesh Nagarajan and Simran Kaur as well as Sachpreetraj Singh (fourth from right) with their clients outside court. (Rajesh Nagarajan pic)PETALING JAYA: Two directors of an investment firm have been found guilty by the High Court of contempt
AlphaCapital (M) Bhd’s Syed Mahadzir Fadaak Syed Jamil Fadaak and Erna Elliyana Rosli were convicted of contempt of court after failing to comply with a Mareva injunction.
A Mareva injunction is a temporary order which restrains a defendant from disposing of assets pending the disposal of a civil suit.
Lawyers Sachpreetraj Singh, Rajesh Nagarajan, and Simran Kaur represented 64 investors who sued AlphaCapital for breach of contract involving a collective sum of RM19,831,440.50.
Rajesh said judicial commissioner Yusrin Faidz Yusoff had set July 15 for sentencing.
“They will either be fined or imprisoned,” he told FMT.
The 64 sued the company for breach of contract after it failed to pay monthly dividend returns.
According to Rajesh, after the suit was filed, his clients discovered that the two directors had led a lavish lifestyle, and had in their possession several luxury cars that were purchased despite the business purportedly suffering losses.
Following the discovery, the investors filed a Mareva injunction in September of last year. Rajesh said that multiple requests were made to AlphaCapital seeking its compliance with the injunction order.
In the same month, the High Court froze nearly RM20 million of AlphaCapital’s assets and funds after granting an ex parte injunction against the private investment company.
Separately, Sachpreetraj revealed that the directors had only partially complied with the order by disclosing the purchase of 13 luxury vehicles, including a Mercedes G36, Mercedes CLA45, Mercedes GLC 300, and several Toyota Alphards.
He said it was also discovered that the company had “close to zero” funds in its accounts.
“Based on the information that we gathered, about RM100 million in investments seemed to have been dissipated by AlphaCapital without any reasonable explanation.
“Many investors, including the 64 plaintiffs, have lost their savings and are presently in precarious positions as a result of AlphaCapital’s actions.” - FMT

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