The head of the International Forex Trading company was charged yesterday after he allegedly defrauded about $30 million from investors.
Phnom Penh Municipal Court spokesman Kuch Kimlong said 34-year-old Cheu Yary was charged with fraud and issuance of dud cheques.
“Phnom Penh Municipal Court charged him with fraud and issuance of bad cheques, in accordance with Articles 377 and 29 of the Criminal Code and Article 231 of the Law on Negotiable Instruments and Payment Transactions,” Mr Kimlong said, noting that the suspect was detained by police officers from the Interior Ministry’s penal department.
He said that the suspect was sent to Prey Sar prison for pre-trial detention.
Major General Houth Taing Hoeuth, deputy director of the Interior Ministry’s penal department, yesterday said as head of the company, the suspect reported high profit returns to investors and issued dud cheques worth $30 million.
Maj Gen Taing Hoeuth said the suspect was arrested in Preah Sihanouk province by local and national provincial law enforcement agents.
“Cheu Yary was arrested on July 27 in Preah Sihanouk province by provincial authorities and the National Police after Phnom Penh Municipal Court issued an arrest warrant,” he said. “Later on, the suspect was sent to the Interior Ministry’s penal department in Phnom Penh.”
According to the arrest warrant, which was signed by prosecutor Keo Sothea, the suspect was summoned to court over allegations of fraud and breaching shareholder trust, noting that the Interior Ministry has been investigating the case since July 4.
According to a police report, a plaintiff said she had invested in the suspect’s company, and that she lost $10 million.