JOHOR BARU, Nov 9 — A 44-year-old man alleged he lost RM500,000 to individuals claiming to be from local company acting as the agent for a non-existent gold trading scheme here recently.

Johor Baru South police chief ACP Raub Selamat said the man lodged a report on the incident that happened on October 28.

"The victim made a police report claiming to have suffered RM500,000 loss in cash after he was allegedly cheated.

"The suspects deceived the victim by claiming to represent a company that purportedly was an agent for the buying and selling of gold bars,” he said in a statement today.

Raub said the incident took place at a hotel here, with the syndicate’s modus operandi being to ask the targets to hand over their money first to be counted.

He said the suspects insisted on counting the alleged RM500,000 in cash while the man waited in the hotel lobby.

"The victim realised that he was cheated when the suspects did not return after four hours of waiting in the hotel’s lobby,” he said.

Police have initiated investigations under Section 402 of the Penal Code for cheating. Those found guilty will face a maximum imprisonment of up to 10 years, whipping and a fine.

Raub appealed to those with information on the case to contact the Johor Baru South district police, and advised the public to be perform due diligence when dealing with unfamiliar individuals.