BANGKOK - The multi-level marketing company run by Malaysian businessman Datuk Daniel Tay is taking much heat from the Thai police.
As of yesterday, 159 people have lodged complaints with the Consumer Protection Police Division against the UFun company.
The controversy surrounding the company began in September last year when police and officials from the Finance Ministry started investigating the company.
The company was registered as a direct sales company selling cosmetics and health products in April last year.
However, victims claimed that UFun never had stocks of these products. Instead, members of the company traded in UTokens (a digital currency) given as interest in the exchange of "goods".
A victim, who had invested 17,500 baht (RM1,960) with the company in October last year, claimed that he was told that a 10 per cent interest would be paid in UTokens on his investment.
He alleged that he did not receive the reward after a month and approached the company to withdraw his investment but his request was denied.
"The company claimed that money I invested was capital and I had to find more members to earn profits. Something wasn't right, I think I might have been duped so I am filing a police complaint," he said.
Six people have been arrested during investigations into the scheme since last week and Thai police are looking for three Malaysians.
The police seized 100 housing units belonging to UFun yesterday from a Thai subsidiary of a major Malaysia-based construction company. The construction company had earlier tried to distance itself from UFun.
A representative of the subsidiary said UFun bought 29 per cent of its shares worth 17mil baht (RM1.7mil) in 2013 but has no seat on its management board.
The representative, who asked not to be named, claimed that UFun used the subsidiary's logos and images to promote its scheme, allegedly damaging the credibility of the construction company.
"We had warned UFun not to do this and have filed a police record of it," said the representative.
The company said it would collect evidence and take legal action against UFun.
During a press conference by a representative from UFun on Wednesday, its lawyer Jessada Jandee claimed that police had issued arrest warrants without prior summonses to the company.