Fake Trader Faces 20 Years & RM9 Million Fine for RM1.45 Mil Derivatives Scam

A Malaysian man who posed as a ‘licensed’ futures trader has been handed a 20-year prison sentence and a RM9 million fine after admitting to running a fraudulent derivatives investment scam.

The Kuala Lumpur Sessions Court found Mohd Azhidi bin Laili guilty of deceiving nine investors between May 2013 and March 2014. Operating under the guise of an investment linked to crude palm oil (FCPO) futures through AmFutures Sdn Bhd, Azhidi misled victims into believing they were participating in a legitimate trading programme. The scheme, however, never existed in the first place.

Judge Puan Hamidah binti Mohamed Deril imposed nine separate sentences under section 206(b) of the Capital Markets and Services Act 2007 (CMSA) with two years imprisonment and a RM1 million fine for each charge. The jail terms will run concurrently. Should the fines remain unpaid, Azhidi faces an additional 27 months in prison upon completion of his primary sentence.

Azhidi also admitted to a further offence under section 59(1) of the CMSA for falsely presenting himself as an authorised representative of AmFutures without holding the necessary licence. For this, the court ordered an additional two years imprisonment, to be served concurrently.

The case first reached the courts in February 2022, shortly after Azhidis arrest. Initially pleading not guilty, he was released on RM250,000 bail with two sureties and was required to surrender his passport and report monthly to the Securities Commission Malaysia (SC). His trial began in February 2023 and continued into early 2025, with testimony from 28 prosecution witnesses, including seven victims.

However, his bail was revoked in May 2024 when he failed to appear in court for two scheduled mentions and neglected to comply with his monthly reporting obligations. The court ruled that his sentence would begin from the date his bail was withdrawn.

Prosecution was led by SC Deputy Public Prosecutor Mohd Izuddin Mohamad, supported by officers Quek Yiing Huey, Raihana Nadhira Rafidi, Eunice Ong Jo Xing, and Mark Rohan Mahadevan. Azhidi was represented by counsel Al-Sabri Haji Ahmad Kabri.

The SC stressed that the outcome underscores the severe consequences of unlicensed trading activities and the harm such scams can inflict on the capital market. The regulator has urged the public to remain cautious and verify any investment opportunities through its Investment Checker tool available on its official website.

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