Investors file 13 police reports after claiming to have been defrauded in alleged ‘Gold Painting Art’ scam of RM38 million

KUALA LUMPUR, Nov 24 — Kepong MP Lim Lip Eng said several investors in Malaysia are taking legal action, alleging they were misled for years by the fraudulent “Gold Painting Art” scam, allegedly run by Serena Chiam, who promised high returns and a buyback guarantee for the artworks, but was not delivered, causing losses of more than RM38 million.

He said investors have filed more than 13 police reports in the past two weeks and some of them have filed civil lawsuits against Chiam for allegedly failing to appear in court.

“Police reports and civil lawsuits have been filed against Chiam because she failed to appear in court to respond to complaints.

“The total amount is estimated at RM38 million, although the actual figure may be higher,” he told reporters at a press conference today.

He also said Chiam is accused of not paying her employees and owes money to various suppliers, investors and even artists involved in her Oureo Gallery in Bangsar, which closed in June 2022.

Investors owe millions

Robert Ong says he was initially attracted to this investment opportunity in 2018, after he was introduced to the art scene by Chiam and her agents due to an allegedly promised buyout guarantee.

However, he claimed that as the years passed, the buyback guarantee never materialized and he had no choice but to take legal action, filing police reports and civil lawsuits to protect his rights.

“Chiam claimed to promote art in Malaysia and offered a platform that helped us resell the art later. They assured us that the value of the work of art would increase significantly over time. When I joined investing around mid-2018, I was optimistic about this promise.

“However, things came to a standstill and the promised buyout never materialized. Despite repeated attempts, no progress has been achieved and promises have not been fulfilled,” he said.

The buyer investor said he has been trying to resolve this issue for six years and has made every reasonable attempt to contact Chiam to find an amicable solution, but she is allegedly avoiding all communication.

Kevin Lee, the agent of Korean artist Kim Ill-tae, said he also faced similar problems when Chiam allegedly advertised the investment as a safe and profitable option, promising returns of up to 30 percent within six months.

However, Lee claimed that even after several years, many investors have yet to receive any compensation.

“She promised different levels of return depending on the duration of the investment. For example, investors who invested in 2018 were offered lower interest rates, while later investors in 2019 and 2020 were promised increasing returns.

“She advertised it as a short-term investment, saying the return would be visible in just three to six months. However, these promises turned out to be groundless. Every time I looked for updated information, I received vague assurances,” he said.

Broken promises

A Korean national, active since 2014, alleged that Chiam claimed she would promote and sell artworks in Malaysia through exhibitions and events held in Kuala Lumpur and other countries.

To build trust and maintain credibility, the agent claimed he had been making payments for years, but Chiam allegedly began delaying payments to the agent, citing numerous excuses, including problems with the artist and her dealings with investors.

“In 2019, Chiam introduced an American investor who owned several listed companies, including one called US Artbank.

“She claimed that this entity would invest in art, additionally supporting a buyback guarantee, but ultimately this link led nowhere.

“This situation has led to complete chaos and investors have lost confidence. After years of delays, excuses and unfulfilled commitments, it is clear that the only remaining option is legal action,” Lee said.

Lee also claimed that Chiam owed him US$6.5 million (RM30.5 million) for over 220 works of art, although it is unclear how much she sold.

He explained that following the termination of her contract with Chiam on December 14, 2022, she was banned from using the artist’s name and portraits, however, it was recently discovered that she allegedly continued to sell works through other networks in an attempt to find new investors.