Renovation company alleged to have cheated homeowners out of over RM 1million

KUALA LUMPUR: Five people alleged that a renovation company has cheated them out of more than RM1 million.

Nigel Ong, 37, a spokesman for the five victims, said the company seemed "professional and established" when they approached, but cut off communications when queried about the slow progress of work.

"We found out about the company through some online platforms and social media. And we came across their professionally designed website, with outstanding testimonials and picture of previous renovations, which made it seem believable.

"The company's boss was also very professional at the start, we even met face to face at the renovation site to discuss the designs. There was just so much professionalism and initiative from them that we did not see a scam was in motion.

"I was scammed out of more than RM100,000 and still couldn't believe that I was scammed. It was my hard-earned money. What was even outrageous was that the lady who liaised with me said the company's boss had died and then she blocked me (from contacting her) afterwards," he said, adding that he had lodged a police report but was not satisfied with the progress of investigations.

Ong was speaking at a press conference arranged by DAP vice-chairman and Seputeh member of parliament Teresa Kok.

He said he later found out that company's owner had been declared bankrupt and had used a fake name to set up a company.

Kok Cheng Soi, 45, and wife Tan Jo Lynn, 40, said they contacted the company to renovate their house and was asked to pay RM197,000 before work started.

"The company then called us to pay another 40 per cent (of the quoted amount) as they claimed to have completed half of the renovations. But when we went to the site, it was not even 50 per cent done.

"They said that they had bought raw materials for the renovation project, and even if renovations had only started, work was still considered done."

The couple said they were asked to pay the remaining amount for workers to continue renovations.

They refused to do so and asked the company owners to come the renovation site to clarify issues, but none turned up and could not be contacted, said Kok.

Another victim, Teo Kiat Hoo, 33, said he had paid 65 per cent of the quoted RM300,000 to an online platform.

He said work had started but it was slow and did not follow the timeline in the agreement.

"Only 15 per cent of the work had been completed and they breached the agreement by not following the timeline. Moreover, they also failed to follow my design," said Teo.

Ong said they had identified 60 victims of the company, and there were probably more who had yet to come foward.

He said a former worker of the company had informed him that the owner of the company had opened a new company and planned to continue the scam.

Seputeh MP Teresa Kok said people must be made aware that renovation scams like these were happening.

She hoped that police would take this issue seriously so that others did not become victims.

"I will write a letter to the inspector-general of police and the Commercial Crime Investigation Department (CID) to investigate and take action on this.

"The police need to take this matter seriously. This is really unfair to the victims to just ask them to go to the tribunal," said Kok.

© New Straits Times Press (M) Bhd

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How to avoid this type of renovator?
Can find in internet black listed companies and contractors?
How to know if safe or not to engage renovator?

Need to enforce a law whereby it's legal to kill scammers

Then only scam cases will drop

not sure if already has it, The gov should blacklist/barred those that have cases from ever opening/register a new company. surely there is a limit to it.

scammer can easily find one guy act as a puppet to register a new company then continue to scam

Doesn't work. People generally attracted to cheaper option. They can promise you sky high work offering with cheaper price. Then kena scam and then blame mother father.. who to blame? Partly themselves cause they don't check background.

My brother operates an ID firm with partnered contractor for long time. Prices are 10 to 20% higher regardless, he at times get rejected by client because got people offer cheaper. Found out that guy who offer cheaper doesn't even have a background, they lurk around new houses and ask for job, say got good indonworkers follow him. But they themselves don't appear after signed up the package. At times never appear in to monitor his indon worker.

thats y i least respect reno contractors
not only talk big, they reno without respecting neighbors' properties, do not have a blueprint plan, work ikut suka hati and cause daily disturbances

https://forum.lowyat.net/index.php?showtopic=5339351&hl=

i have yet to encounter one professional contractor

Why pay huge sum before renovation even started?

Renovation always need to pay deposits for the contractor to buy material/hire ppl to do the job.

pay by phase lah.

split into many phases.

find contrakor that willing todo this, those cant ask them go fly kite.

can somebody just kill you for fun
and later claim you scammed.

and you died, you cant defend your innocent.

Best reno contractors dont have to advertise. Spread by word of mouth

From the article, we also dunno what's the total cost for the renovation also from the 100k he pay.

This post has been edited by blah2blah: Dec 16 2022, 12:47 PM

It's ok , I become ghost and take revenge.

Ghost ridah!!!

shake-hand time if hand smooth smooth better avoid.

what company name?

If need to pay 100k upfront then get another contractor. A contractor like this is like no capital at all.

phase by phase doesn't mean they can't cheat you.

maybe 1st phase 10k, then 2nd phase 50k.

they gain your trust in 1st phase, then suddenly 2nd phase make excuses need 40k to buy materials, if not cannot continue job.

so if u pay, they buy some of the materials then they run away.

if u refuse to pay, they cut their losses and run away.

We don't know what's the total cost of the quoted renovation job also. Maybe is a half million renovation?

finding good contraktor is your first job.

second is find one that dont need full payment to buy materials, only pay as work being done by them. my contraktor layout his plan and he collect payment by very small phases, build living room, collect living room cost, build toilet collect toilet cost.
That way you reduce the risk

Scammers will drop the company the moment they sense it's queried. Then they open up another company. It's a repeating process. Like those money game fellas...

can share your contractor name?

Nowadays everywhere is scam , need to do alot of due diligence , definitely not for average people to smell out the scam.