Former Banker Gets Seven Years After RM1.58 Million Client Fraud

A former bank relationship manager in Kuching has been sentenced to seven years in prison and fined RM40 million after admitting to defrauding eight customers through a fictitious bond investment scheme.

Kho Yung Kang, 39, pleaded guilty at the Kuching Sessions Court to 16 counts of cheating and eight charges under Malaysias anti money laundering legislation. The case involved RM1.58 million taken from eight bank customers, several of whom were senior citizens aged between 60 and 75.

The court proceedings exposed how an investment proposition presented through a trusted banking relationship allegedly became a vehicle for diverting customers money into accounts controlled by third parties. The funds were subsequently used for purposes unrelated to the investments that customers believed they had authorised.

According to the facts presented in court, Kho was working as a relationship manager at an international bank in Kuching and was responsible for assisting customers with financial products including unit trusts, bonds and fixed deposits, as well as domestic and international remittances. His position gave him access to customers who were seeking conventional investment opportunities and looking for guidance from someone they trusted.

Investigators found that between March 21, 2022 and June 11, 2024, 16 unauthorised transfers were made from the accounts of eight customers, amounting to RM1,587,971.48. The customers did not know about or consent to the transfers.

The alleged scheme centred on a bond investment that did not exist. Customers were persuaded to provide signatures and biometric verification based on representations that their money would be placed into an investment offering promising higher returns.

Instead, the funds were moved from their accounts into several third party accounts through channels including DuitNow, interbank transfers and cashier‘s orders. Part of the money was later used for personal purposes, including settling debts, paying commissions and financing renovation work, according to the prosecution’s case.

The case demonstrates why financial fraud can be particularly damaging when it occurs within established banking relationships. Unlike an unsolicited online message or an anonymous investment advertisement, the alleged scheme was presented through an individual whose professional role was connected to customers finances.

The court imposed between three and four years imprisonment and one stroke of the cane for each of the 16 cheating charges. Those prison terms were ordered to run concurrently from May 23, 2025, when Kho was remanded.

The eight money laundering charges each carried three years imprisonment, also to run concurrently, together with a RM5 million fine for each charge. The combined fines therefore amounted to RM40 million. Reports have differed over the precise number of cane strokes ordered, with several reports putting the figure at 16 while Bernama reported 24.

The distinction over the prison terms is significant. Although individual charges carried lengthy sentences, the concurrent orders mean Khos effective prison sentence is seven years rather than 75 years. The RM40 million fine, meanwhile, remains a substantial financial penalty, and reports said he failed to pay it.