Too cheap to be true – JPJ busts cloned car syndicate

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They say that when something is too good to be true, it probably is. The Star reports that a syndicate has been luring people to buy cloned luxury cars online at prices three times lower than the market value, and that these “good deals” have been ongoing for six months.

But all good things come to an end, too. The syndicate was recently busted after the Road Transport Department (JPJ) and Malaysian Anti-Corruption Commission (MACC) seized 153 of the vehicles valued at RM13 million at various locations in Terengganu.

“The vehicles, previously declared as total losses in the country they were smuggled from, were sold for between RM20,000 and RM50,000 in Malaysia. This caused our government a loss of RM7 million in unpaid taxes,” said JPJ director-general Datuk Seri Ismail Ahmad.

He added that some of the cars were brought in illegally from Singapore and used fake road tax. Cloned cars also typically have forged documents, chassis and engine numbers. Singaporean cars come with a Certificate of Entitlement (COE) that’s valid for 10 years, after which the car must be scrapped or exported if the owner doesn’t bid for a new COE. Malaysia does not allow cars to be imported from Singapore.

roadtaxshj 093

You have one? Ismail urged owners of such vehicles to surrender their vehicles either to the JPJ or MACC. “Owning these vehicles is against the law and dangerous because it is not covered by insurance. Under the Road Transport Act, we will ask for owners of seized cars to relinquish their ownership and put the vehicles up for auction,” he said.

Those involved in the business of cloned cars are being marked by more than one agency. Three people in their 20s were recently arrested in the Klang Valley for acting as middlemen between the syndicate and buyers. MACC’s intelligence division di­rec­tor Datuk Azam Baki said those found to be involved and in possession of cloned cars would be investigated under Section 18 of the MACC Act 2009.

“Under the MACC Act, the suspect can be jailed not less than 20 years and subject to paying a penalty fee. They can also be investigated under the Penal Code for possessing illegal documents,” he added.

Remember, when something is too good to be true, it probably is. Spotted any “good deals” recently?

To filter out illegal cars and scams, each car dealer and direct seller on our car classifieds website oto.my are required to pass a strict identity verification process before their ad listings can be posted.

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Danny Tan

Danny Tan loves driving as much as he loves a certain herbal meat soup, and sweet engine music as much as drum beats. He has been in the auto industry since 2006, previously filling the pages of two motoring magazines before joining this website. Enjoys detailing the experience more than the technical details.

 

Comments

  • Ah Tong on Apr 24, 2015 at 1:22 pm

    Why would you seize it and put them in auction instead of helping them legalize their car? Government now only interested in money than helping people.

    Well-loved. Like or Dislike: Thumb up 283 Thumb down 39
    • Abu Sayur on Apr 24, 2015 at 1:37 pm

      Cause maybe they forged the documents to deceived customs and buyers? If your business model is based on deceit and avoiding taxes, you should not even be in business.

      Like or Dislike: Thumb up 58 Thumb down 18
      • Same L0rrrr on Apr 24, 2015 at 2:51 pm

        What about your beloved government say
        1. they are transforming Malaysia to high income country
        2. Every things will drop price after GST
        3. Wawasan 2020
        4. Petrol will follow international price?
        5. AP will be abolished
        6. Proton Hybrid
        7. Exercise duty and import will be lowered?

        Do you see any difference between your beloved government and these car syndicate? I don’t see any.

        Well-loved. Like or Dislike: Thumb up 140 Thumb down 14
        • paulnut on Apr 24, 2015 at 3:13 pm

          You are lier too.

          Like or Dislike: Thumb up 9 Thumb down 40
          • Same L0rrrr on Apr 24, 2015 at 3:53 pm

            You can bullshit anything about me, like i would give a damn. I wonder what else you have in your empty brain besides bullshitting I have a junk Saga at home.

            So interested on the junk? come knock my door, I will give you the car for free if I do have any junk Proton.

            Pity you can’t even afford a junk, work harder then, get a life!

            Like or Dislike: Thumb up 26 Thumb down 30
          • Same Lahanort on Apr 24, 2015 at 5:20 pm

            you can stop bullshit saying anything about people`s life and your stupid hilux. work hard then throw that junk away.dont expect you have Toyota you`re rich enough

            Like or Dislike: Thumb up 19 Thumb down 17
        • Gargantia on Apr 24, 2015 at 3:17 pm

          Gov loss 7 millions on taxes… Rakyat pay total-up 7 billions to cronies tax !!!

          MAA / MAI just a stupid organisation by Govt to feed Cronies !!!

          Well-loved. Like or Dislike: Thumb up 82 Thumb down 8
          • Rafizi on Apr 25, 2015 at 2:15 am

            Selling reasonable price cars got arrested, protecting Proton with overpriced cars is ok. Wtf

            Like or Dislike: Thumb up 27 Thumb down 2
      • aaron on Apr 24, 2015 at 3:48 pm

        read bro,
        “Owning these vehicles is against the law and dangerous because it is not covered by insurance. Under the Road Transport Act, we will ask for owners of seized cars to relinquish their ownership and put the vehicles up for auction,”

        the owner is the victim, not the fake car dealer

        but the owner also saw this coming de lah. so cheap

        Like or Dislike: Thumb up 33 Thumb down 1
        • George Abdul on Apr 24, 2015 at 4:51 pm

          Correct infact Bolehland not using Lemon law to protect Rakyat… Instead still using ages lousy insurance to cover and protect cronies !!!

          A bush of bullsh*t by Govt again !!!

          Like or Dislike: Thumb up 20 Thumb down 4
          • Datuk K on Apr 24, 2015 at 6:32 pm

            More specifically, to protect Proton.

            Rakyat is the victim of Proton!

            Like or Dislike: Thumb up 17 Thumb down 6
    • thefact on Apr 24, 2015 at 1:41 pm

      buy illegally, knowing its illegal… n then the government have to help to legalize it?

      i wonder whats next? buy stolen items and ask government to legalize it?

      Like or Dislike: Thumb up 43 Thumb down 8
    • superboy on Apr 24, 2015 at 2:12 pm

      i’m doubt someone would hand over these ‘illegal’ car without compromise. Nevertheless they still care about Tax instead of harming public safety.

      Like or Dislike: Thumb up 16 Thumb down 3
    • not tht gomen want money.. u go to any country also the procedure is the same.. illegal car must be seized and then auctioned (only if such vehicle comply to road safety rule) if not they must be send to be destroyed..maybe along the way some do get to their owner but must pay the tax tht was once evaded

      Like or Dislike: Thumb up 11 Thumb down 2
    • Desperate Citizen on Apr 28, 2015 at 5:18 pm

      RM7 million in unpaid taxes is peanuts compared to the RM20 billion that the government lost due to 1MDB.

      Like or Dislike: Thumb up 2 Thumb down 2
  • dodgeviper88 on Apr 24, 2015 at 1:24 pm

    just liberalise the car taxes and these people will be out of job overnight. Government is running out excuses on why they are charging exhorbitant taxes on the car. We’re paying non-subsidised fuel for a net exporting country, our insurance structure is almost as expensive with similiar insurance structures as western countries. Almost every km of KL roads is being charged with toll with no toll-free alternatives, and don’t even get me started with the maintenance of the roads. So tell me now, what justifies the exhorbitant car taxes?

    Well-loved. Like or Dislike: Thumb up 113 Thumb down 7
    • Abu Sayur on Apr 24, 2015 at 2:13 pm

      One word: Proton

      Like or Dislike: Thumb up 43 Thumb down 16
    • Well said. Its the government that is raking in millions by robbing the people in broad day light with their high taxes because of safe guarding Proton.
      Well said on the tolls and the condition of the roads too. cant agree more.

      Like or Dislike: Thumb up 1 Thumb down 1
  • Abu Sayur on Apr 24, 2015 at 1:33 pm

    Seize and crush the cars. And also fine the perpetrators the losses in tax and send them to jail.

    Like or Dislike: Thumb up 14 Thumb down 19
  • Obviously (Member) on Apr 24, 2015 at 2:17 pm

    The troubling thing would be the cloned cars that were considered total losses. These usually mean cars that were involved in serious accidents or have some other sort of damage. Who knows in what condition are the car’s running gear underneath since they can sell the car so cheaply? The reconditioning of the car might not have been done to ensure safety. These cloned cars should be inspected and, if it’s beyond saving, scrapped.

    I don’t know what to say about the illegal Singaporean cars, though. We need a lawyer to provide us with details on this.

    Like or Dislike: Thumb up 11 Thumb down 1
    • These vehicles were previously ‘declared’ to be total losses to bypass taxes. It does not mean the vehicles are actually certified to be total losses.

      Like or Dislike: Thumb up 23 Thumb down 1
      • Obviously (Member) on Apr 24, 2015 at 3:56 pm

        I did suggest that they be inspected, didn’t I?

        Like or Dislike: Thumb up 1 Thumb down 2
      • Obviously (Member) on Apr 24, 2015 at 4:12 pm

        Now that I’ve reread it, the JPJ director-general’s wording for that quote is kind of ambiguous. From his statement, I got the notion that they have done their homework of ascertaining the confiscated cars’ original identity and found that they were, indeed, write-offs. And I think you misunderstand the part about the unpaid taxes. It’s saying that the unpaid taxes were the result of the cars being sold for so low since it’s only taxed at the point of purchase now…

        Now, some common sense:
        How else would they be able to price these cars so low without making a big loss? That would be very charitable crime syndicate, wouldn’t it? Even if these were originally cars stolen from other countries and then smuggled in, pricing an original this low would still attract suspicion (I think this was how JPJ busted these fellas) and they would also be losing possible profit.

        My speculation:
        I suspect that write-off cars were bought off auction (written-off car wrecks are usually auctioned off to workshops to be stripped of their parts and scrap metal), restored only as much as aesthetically and repaired so that it could be in a working condition or restored using parts scavenged from other stolen/write-off cars.

        Like or Dislike: Thumb up 3 Thumb down 2
        • bro do u not know how to read ? these are perfectly fine A-ok cars, which have not been in major accident, but which are only old. in Singapore old cars are literally worthless because they can no longer be driven, but cross into Malaysia and we still value these old but drivable cars.

          Like or Dislike: Thumb up 1 Thumb down 1
  • poodah on Apr 24, 2015 at 2:17 pm

    why? ap king cannot eat already ka?

    Like or Dislike: Thumb up 31 Thumb down 1
  • Lposti on Apr 24, 2015 at 2:21 pm

    Dont blame the gov, blame the real bastard culprits & real bastard buyers who aware about the car status.

    Like or Dislike: Thumb up 13 Thumb down 13
  • Can SG cars be exported to Thailand then come to MY declare as come from Thai?

    Like or Dislike: Thumb up 0 Thumb down 2
    • Ultra2Disk on Apr 24, 2015 at 2:52 pm

      That sounded good but the sellers sure not making profit much.

      Like or Dislike: Thumb up 2 Thumb down 0
  • Kancil Hybrid on Apr 24, 2015 at 2:27 pm

    Why you want to bust this business when your policies foster this kind of business to grow at the first place?

    People want to own a good car, but pricing is ridiculous.

    Stop your nonsense excise duties on cars, and this business will disappear within minutes.

    Like or Dislike: Thumb up 45 Thumb down 1
  • Luxury on Apr 24, 2015 at 2:47 pm

    If its cheap, its too good to be true. What if the price of the car is too high… “TOO BAD, YOU CAN’T AFFORD ONE!”

    Like or Dislike: Thumb up 23 Thumb down 0
  • old dog on Apr 24, 2015 at 2:50 pm

    Not less than 20 years?
    then 1MDB fraud going to how many years?
    those killers and rapist for how many years?

    Like or Dislike: Thumb up 20 Thumb down 0
  • mr jem on Apr 24, 2015 at 3:12 pm

    I tot all the vehicles hav to go through JPJ before any sale transaction is goin to happen. How come u approved the deal and then declare it illegal? Shud check your own system perhaps?

    Like or Dislike: Thumb up 7 Thumb down 0
  • aiyoyo on Apr 24, 2015 at 3:31 pm

    “You have one? Ismail urged owners of such vehicles to surrender their vehicles either to the JPJ or MACC”

    Seriousy? I wonder which sane human being will surrender a (maybe pretty decent foreign) car they bought for at least 20k to the government to be auctioned to OTHER PEOPLE and get nothing in return? Use your brain think la government officersss.. aiyoyo

    Like or Dislike: Thumb up 12 Thumb down 2
  • gen pon on Apr 24, 2015 at 4:20 pm

    good info source lah paultan.
    mana mau dpt ini kereta?.. agent please wasap me, i need branded but cheap car urgently!

    Like or Dislike: Thumb up 10 Thumb down 0
  • Ill buy these cars and make it a track day car.. Of course have ti check whether its kereta potong etc.. Very Cheap .. Good bargain..

    Like or Dislike: Thumb up 7 Thumb down 0
  • Steinway on Apr 24, 2015 at 4:46 pm

    Berani buat, berani tanggung.

    Like or Dislike: Thumb up 1 Thumb down 0
  • i have an impreza at home…im gona sell the engine take all the bodyparts and give it to jpj haha go and put ur fortuner engine n sel it

    Like or Dislike: Thumb up 3 Thumb down 0
  • Joker on Apr 24, 2015 at 4:50 pm

    Maybe we should start supporting these syndicates as a form of protest to the unreasonably high price of automobile in malaysia. Since all the tax money collected never been correctly use on the rakyat but corruption. IM ONLY JOKING…. LOL….

    Like or Dislike: Thumb up 15 Thumb down 0
  • the perpetrators also inside guy..have any jpj being caught yet?

    Like or Dislike: Thumb up 9 Thumb down 0
  • cendol (Member) on Apr 24, 2015 at 5:44 pm

    I tell you a story.
    My friend bought a 10 year old Harrier from these kind of dealer for RM55k (normal price RM120k
    One man dealer, he accepts ‘cash’ downpayment RM10k, his buddy in Singapore drives the car to JB, the dealer drives the car to JPJ.
    Then JPJ will ‘try’ to legalise the car by copying a road tax with similar car from other place.
    Then using the JPJ road tax, the dealer will go to insurance company and get insurance cover for it.
    SO now the Harrier has JPJ road tax and legal insurance.
    From Singapore down to insurance, many layers of people are involved.
    This means this syndicate is wide spread and has substantial back-up from relevant authorities.
    Not easy to track down these kind of masterminds.
    Normally those who get caught are just the ‘ikan sardine, small fry’, the ‘big fish’ remains free.
    They are free to ‘restart’ the business after it cools down for few months

    Like or Dislike: Thumb up 30 Thumb down 0
    • Nelson moore. on Apr 24, 2015 at 10:04 pm

      Yes same thing with me. Down payment RM10K and now the car has legal paper and even the JPJ criminals did the grants, insurance and road tax for us for just 5Krm..lol.. All bunches of thieves and criminals! Enjoy my Benz c300! and no one can take it away from me because now I got all the car document through the help of an officer inside JPJ :p

      Like or Dislike: Thumb up 12 Thumb down 1
    • kikilala on Apr 24, 2015 at 10:14 pm

      i do agree what u saying is the truth ….

      Like or Dislike: Thumb up 3 Thumb down 0
  • rotiboy hangit on Apr 24, 2015 at 5:44 pm

    haha ppl afford to buy this got cash man, 50k also no problem, but things like this is unfair. do u have that much man? haha

    Like or Dislike: Thumb up 0 Thumb down 0
    • kikilala on Apr 24, 2015 at 10:15 pm

      mostly bought by status malaysian citizen …. datum nenek status

      Like or Dislike: Thumb up 0 Thumb down 0
  • SoRight on Apr 24, 2015 at 7:42 pm

    YES, that is a good idea…PUNISH the greedy citizens…but please let the CRONIES thrive…
    I like this pledge. Shows how the country is managed.

    Like or Dislike: Thumb up 7 Thumb down 0
  • james lau on Apr 24, 2015 at 7:55 pm

    Lost 7 million taxes only, 1MDB lost 42,000 million (42billion) of malaysian’s money. Go and chase for that first!!

    Like or Dislike: Thumb up 20 Thumb down 0
  • Nelson moore. on Apr 24, 2015 at 10:00 pm

    LOL so funny, I should submit my car to JPJ..lol I don’t think that will be possible my dear govt. I paid 45Krm to dealer for BENZ C300 and I don’t care if the car has paper or not, Going to park the car in my compound for the main time and when am ready I will ship it str8 down to my country with the help of this so called corrupt JPJ criminals!

    Like or Dislike: Thumb up 1 Thumb down 0
  • karipap basah on Apr 24, 2015 at 11:16 pm

    The corrupted jpj taking about corrupted car syndicate.

    hahahaha!

    Like or Dislike: Thumb up 4 Thumb down 0
  • waterman on Apr 25, 2015 at 12:23 am

    the owner must be just back from overseas and thinking this price is more reasonable than our “overpriced” car.

    Like or Dislike: Thumb up 2 Thumb down 0
  • whysoexpensive on Apr 25, 2015 at 7:34 am

    before handed to jpj/macc, better dismantle part by part and sell it as spare part.

    Or u smash it, wreck it, and hammered it, nailed it and then, hand over it to them. So evweybody win.

    Like or Dislike: Thumb up 5 Thumb down 0
  • faizalmisman on Apr 28, 2015 at 8:21 am

    how bout >10years car in malaysia? why they dont want to scrap also? much better 5years car with good condition rather than 10years car with unknown condition.peoples money.up to them la..

    Like or Dislike: Thumb up 0 Thumb down 0
  • Siowmage on Apr 29, 2015 at 8:39 am

    If I understand correctly from the article above, Malaysia doesn’t allow cars to be imported from Singapore. But if the authority put the confiscated cars on auction, isn’t that legalizing the car imported from Singapore and break the first rule mentioned? If the car can be auction (re-sell) to another buyer. Why can’t let the current buyer pay the tax and/or fine and legalize the ownership? Instead of putting up as auction. Unless this auction is to favor somebody otherwise I think the authority only concern about the import tax, not concern on who is the owner, right?

    Like or Dislike: Thumb up 0 Thumb down 0
    • because the cars which are auctioned are only supposed to be used on track , or scrapped for parts. there is no possibility to be legalized for on-road use.

      Like or Dislike: Thumb up 0 Thumb down 1
    • dugongx on May 01, 2015 at 12:27 am

      They can do anything they want you know. You did call them the authorities. Welcome to bolehland

      Like or Dislike: Thumb up 0 Thumb down 0
  • james on Jan 12, 2016 at 9:48 am

    I own one of these cars..some Indian gang came, extort me and hijacked it from me.
    Learnt a lesson.. Next time fight for it and dont let them go. Get some friends to help you ehn you have a chance. Make sure you capture their picture or any evidence from them

    Like or Dislike: Thumb up 0 Thumb down 0
 

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