Islamic finance figure Tan Sri Dr Mohd Daud Bakar has issued legal demand notices against two individuals, seeking the repayment of RM750,000 and RM10 million in compensation over the alleged unauthorised use of his name and professional reputation in an investment scheme.
The 62-year-old former chairman and non-executive director of Energy Eco Berhad issued separate notices through law firm Messrs Shahrul & Haziq, dated Aug 18, against Energy Eco director Datuk Norliza Tajudin and AUF MBZ Consortium PLT (AUF) founder and partner Datuk Seri Mahadi Badrul Zaman.
Mohd Daud, who is also a former chairman of Bank Negara Malaysia’s Shariah Advisory Council, is seeking for both individuals to bear all costs and expenses arising from the alleged misuse.
According to the demand notices, Mohd Daud said he had been forced to use RM750,000 from his personal funds to protect his name and professional standing.
The two individuals have been given 14 days to provide a satisfactory response, failing which Mohd Daud said he had instructed his lawyers to commence legal proceedings.
He alleged that his name, position and professional reputation had been used and exploited without his knowledge or consent in connection with an investment scheme operated by Energy Eco.
At the time, Norliza was the company’s chief executive officer and was allegedly jointly responsible with the management for its administration, finances and day-to-day operations.
Mohd Daud alleged that Mahadi, who is also the husband of a singer and activist, founded and co-owned AUF, which was appointed as the marketing and distribution party for Energy Eco’s investment scheme. He was also allegedly involved in promoting the investment through the firm.
Although Mohd Daud had previously served as Energy Eco’s chairman and non-executive director, he said he was never involved in the company’s daily management, financial affairs, investment promotions, negotiations with investors or handling of their money.
He alleged that his name and professional reputation were used without his knowledge or consent to boost confidence in the scheme and encourage members of the public to invest.
Mohd Daud said he only became aware of the alleged use of his name after Energy Eco failed to make payments and investors began contacting him directly.
The demand notices were issued without prejudice to Mohd Daud’s rights and defence in ongoing criminal proceedings.
On Feb 23, Mohd Daud pleaded not guilty at the Sessions Court here to a charge of abetting the operation of an unlicensed securities business.
On the same day, Mahadi, 43, was charged with allegedly conducting securities transactions without a valid licence as a representative of AUF MBZ Consortium PLT.
On May 11, Mohd Daud and Norliza were charged as agents, directors and shareholders of Energy Eco with allegedly being entrusted with property and, with a common intention, committing criminal breach of trust involving money belonging to four investors.
Norliza was subsequently charged again at the Sessions Court here on Aug 19 with 10 counts of allegedly receiving RM13.4 million in proceeds from unlawful activities.
