Court orders MYAirline founder to repay RM67.5mil to investors

MYAirline announced it had suspended operations on Oct 12, 2023, citing ‘severe financial challenges’. (Facebook pic) PETALING JAYA: The High Court in Kuala Lumpur has ordered MYAirline co-founder Goh Hwan Hua and entities linked to him to repay RM67.56 million to 206 investors after ruling that an investment scheme operated by them was an illegal deposit-taking and Ponzi-style scheme. Acting for the plaintiffs, law firm Zharif Nizamuddin said in a statement that Justice Leong Wai Hong granted judgment in default on July 16 after the defendants, despite being served with the suit, failed to enter an appearance or file a defence.

The court declared that Goh and the companies operated as a single “ecosystem scheme” and economic unit, with Goh being the controlling mind behind the operation. It ruled that the investment agreements signed by the investors were void from the outset, that products marketed to investors as shariah-compliant were not, and the defendants had lied to or misled the investors. Goh and the entities were ordered to jointly and severally repay the full amount invested by the 206 investors, totalling RM67,556,087, together with pre-judgment interest at the fixed deposit rate and post-judgment interest of 5% annually.

They were also ordered to hand over full details of their bank accounts and financial dealings, which will help the investors' lawyers track down and recover the money. The court awarded RM80,000 in costs to the investors. The investors had filed the suit after allegedly being induced between 2018 and 2023 to place funds into the scheme through various instruments, including letters of participation, partner financing agreements and share subscription agreements for redeemable preference shares.

They claimed they were promised guaranteed monthly returns. On Feb 28, 2025, the 206 investors filed a fresh lawsuit naming Goh and 30 others, including individuals, companies, a law firm and a shariah consultancy firm. The defendants include I-Serve Technology and Vacations Sdn Bhd, I-Serve Travels & Tours Sdn Bhd, I-Serve Online Mall Sdn Bhd, Tawafuq Consultancy Sdn Bhd, Bright Moon Venture PLT, MM2217 PLT, and QA Smart Partnership PLT.