Lawyer Datuk Jerald Gomez (Photo by Sam Fong/The Edge)

KUALA LUMPUR (June 27): Datuk Allan Goh Hwan Hua, co-founder of MYAirline Sdn Bhd has been hit with another lawsuit, this time from 213 people who invested about RM70 million in entities purportedly linked to him.

Goh, his wife Neow Ean Lee, along with 18 entities allegedly linked to him, have been sued for fraud, negligence and breach of trust, among others.

The 18 entities are: i-Serve Technology and Vacations Sdn Bhd, i-Serve Travels & Tours Sdn Bhd, i-Serve Online Mall Sdn Bhd, MM 2217 Plt, Bright Moon Venture Plt, QA Smart Partnership Plt, Global Wealth Elite Plt, QA Elite Partnership Plt, QA Premium Partnership Plt, Alpha International Venture Plt, QA Advance Partnership Plt, Win Capital Holdings Sdn Bhd, Global Prosperous Plt, Win Capital I Plt, New Visionproven Bhd, Advanced Digital Venture Bhd, Trillion Cove Holdings Bhd and MyAirline Sdn Bhd.

In court papers seen by The Edge, the investors accused Goh of using "his web of intertwined corporate entities" to create schemes to collect deposits from unsuspecting investors.

They claimed that between 2018 and 2021, they were deceived by Goh or his agents to deposit monies in some of these entities on the promise that the deposits would be repaid in full, along with returns of investments. However, to date, they have recovered neither capital nor interest.

The plaintiffs, represented by Messrs Jerald Gomez & Associate, also claimed that representations were made by Goh and his agents that even if a particular entity did not generate business revenue, Goh and the i-Serve Group of Companies had agreed that the investors would be given the agreed interest rate, which was termed "guaranteed revenue share".

In the suit filed on Tuesday (June 25) at the Shah Alam High Court, they said Goh had assured them that their deposits were intact even after several companies under the I-Serve Group were raided by the central bank in November 2021.

But they claimed Goh told them they needed to sign new agreements if they wanted to preserve or get their deposits back, saying the new agreements were allegedly needed because Bank Negara Malaysia (BNM) had directed those companies to cease all existing agreements with their investors.

Last September, Bank Negara Malaysia said it had imposed a RM50 million compound against the i-Serve Group for accepting deposits without a licence. The compound has been paid.

In the lawsuit, the plaintiffs are seeking, among others, a court declaration that Goh orchestrated a fraudulent scheme using those entities linked to him. They are also seeking a declaration that some of the agreements entered into between them and the entities are void.

Besides damages for fraud and negligence, they are also seeking exemplary and aggravated damages.

The matter has been set for case management on July 29.

Investors hope to get justice and their money back

Some 120 of those investors involved in the lawsuit gathered for a press conference on Thursday (June 27). Many of them related stories of mental anguish over the predicament they suddenly find themselves in. Many have also resorted to borrowing money from others or taking up odd-jobs to scrape by.

P Ratnavali Devi, one of the investors, said many of them felt shame for having been duped. "The loss of money is one thing but to lose your mental wellbeing [...]," she sighed.

They voiced their hope for justice to prevail and to be able to get their money back.

This is not the first suit from investors against Goh involving their investment in his companies. Some 15 investors previously initiated a lawsuit against Goh and four companies under his control over their alleged failure to pay monthly redemption sums and financing returns from their outlay of about RM8 million.

Goh had applied to strike out that suit but his bid was dismissed last December. The case is set to go on trial in October.

MYAirline abruptly halted its operations on October 12 last year due to "significant financial pressures". A few days later, Goh, his wife and son were arrested by the police to facilitate an investigation under the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001. They were later released on bail.

Subsequently, MYAirline, after months of trying but unable to secure a new investor, lost its licence to operate as a commercial airline in April this year.