JOHOR BARU: Police have arrested three men for allegedly running a loan shark syndicate in Johor Baru with loans amounting to RM1.5mil.

       Johor police chief Comm Datuk Ayob Khan Mydin Pitchay said that the suspects, aged between 27 and 47, were arrested during an operation around Johor Baru at about 5pm on Aug 18.

       “The syndicate has been operating since late 2019 and preyed on petty traders. They offered loans between RM1,000 and RM100,000 with a monthly interest of 8% to 15%.

       “Our investigations revealed that there were a total of 80 borrowers that had become regular clients,” he said during a press conference at the Johor Police Headquarters on Monday (Aug 23).

       Comm Ayob also said that the case is investigated under Section 5(2) of the Moneylenders Act 1951 which carries a maximum penalty of RM1mil fine and five-year imprisonment.

       Meanwhile, in an unrelated case, police had arrested a 41-year-old man for splashing red paint on four houses in Batu Pahat and Segamat at about 5pm on Aug 17.

       “Investigations revealed that the suspect was employed to throw red paint on the house of loan defaulters. He was paid RM350 for each house.

       “We seized the suspect's vehicle as well as his mobile phone that contained videos of his act,” said Comm Ayob.

       The case was being investigated under Section 29AA of the Moneylenders Act 1951 which provides for a maximum jail term of two years or a fine of up to RM20,000 or both, upon conviction.

       He was also being investigated under Section 427 of the Penal Code for causing damage which carries imprisonment of between a year and five years or a fine or both, upon conviction.