KUALA LUMPUR, Nov 24 — Kepong MP Lim Lip Eng said several investors in Malaysia are taking legal action after being misled for years by a fraudulent “Gold Painting Art” scam operated by Serena Chiam, who promised high returns and a buyback guarantee for the artworks but failed to deliver, causing losses exceeding RM38 million.
He said over 13 police reports have been made by the investors over the past two weeks, with some filing civil suits against Chiam for failing to appear in court.
“The police reports have been lodged against Chiam, as well as the civil suits as she failed to show up to the court to address the complaints.
“The total amount involved is estimated to be RM38 million, although the actual figure could be higher,” he told reporters in a press conference here today.
He also said that Chiam is accused of not paying her employees and owes money to various suppliers, investors, and even artists involved in her gallery, Oureo Gallery in Bangsar, which was shut down in June 2022.
Kepong MP Lim Lip Eng (centre) with victims of the gold art painting scam after a press conference in Kepong November 24, 2024. — Picture by Yusof Mat Isa
Victims owed millions
A victim to the fraud, Robert Ong, said he was initially drawn to the investment opportunity in 2018 after being introduced to the art scene by Chiam and her agents due to the buyback guarantee that was promised.
However, he said as the years passed, the buyback guarantee never materialised and he had no choice but to take legal action by filing police reports and civil suits to protect his legal rights.
“Chiam claimed to promote art in Malaysia and offered a platform to help us resell the artwork at a later date. They assured us that the artwork’s value would increase significantly over time. When I joined the investment around mid-2018, I was optimistic about this promise.
“However, things came to a halt, and the promised buyback never happened. Despite repeated attempts, there was no progress or fulfilment of their promises,” he said.
The purchaser investor said that he has been trying to resolve this issue for six years and making all reasonable attempts to contact Chiam and seeking an amicable solution but she has avoided all communication.
Another victim, Kevin Lee, who is an agent to Korean artist Kim Ill-tae said he also faced similar issues where Chiam had marketed the investment as a secure and profitable option, promising returns of up to 30 per cent within six months.
However, Lee revealed that even after several years, many investors had yet to receive any compensation.
“She promised different levels of returns based on the time of investment. For example, those who invested in 2018 were offered lower rates, while later investors in 2019 and 2020 were promised escalating returns.
“She marketed this as a short-term investment, claiming that returns could be seen in as little as three to six months. However, these promises turned out to be baseless. Each time I sought updates, I was met with vague reassurances,” he said.
Broken promises
The Korean national, active since 2014, explained that Chiam had claimed she would promote and sell the artworks in Malaysia through exhibitions and events held in Kuala Lumpur and other countries.
To build trust and maintain credibility, the agent said he made payments over the years, but Chiam began delaying payments to the agent, offering numerous excuses, including issues with the artist and her dealings with investors.
“In 2019, Chiam introduced the involvement of an American investor who owned several listed companies, including one named US Artbank.
“She claimed this entity would invest in art, further supporting the buyback guarantee but this connection ultimately led nowhere.
“This situation has become a complete mess, with investors losing trust and confidence. After years of delays, excuses, and failed commitments, it is clear that legal action is the only remaining option,” Lee said.
Lee also said Chiam owes him US$6.5 million (RM30.5 million) for over 220 pieces of art, though it is unclear how many she has sold.
He explained that after the termination of the contract with Chiam on December 14, 2022, she was prohibited from using the artist’s name and portraits, but it was recently discovered that she continued selling the artwork through other networks in an attempt to find new victims.
