Three former employees linked to Telekom Malaysia (TM) and its US subsidiary have been charged by the US Department of Justice (DOJ) over a fraud scheme involving more than US$20 million (~RM80 million) in company funds. According to the DOJ, Mohd Hafiz Lockman, Mohd Yuzaimi Yusof, and Khanh Thuong Nguyen were indicted on charges of wire fraud conspiracy, wire fraud, and aggravated identity theft. The trio previously worked at Telekom Malaysia USA before being dismissed following an internal investigation.
US prosecutors say the defendants orchestrated a years-long scheme between July 2020 and February 2026 involving forged corporate records, fictitious transactions, false statements, and impersonation of both companies and individuals. The activities were intended to deceive suppliers, auditors, supervisors, and other counterparties.
Image: David Trinks, via UnsplashAmong the accusations highlighted in the indictment was the use of an AI-assisted impersonation tool to trick human resources personnel into processing salaries for non-existent employees and interns. The payroll scam was also part of a wider effort that involved inflating data capacity sales and cable procurement costs.
The DOJ said the Federal Bureau of Investigation (FBI) found that the fraud network successfully diverted millions of dollars into accounts controlled by the defendants, with at least US$2.9 million traced directly to them. The overall scheme consisted of four interconnected fraud operations that collectively misappropriated more than US$20 million from the company.
Mohd Hafiz was arrested at San Francisco International Airport on 20 April 2026, while Nguyen and Mohd Yuzaimi surrendered to authorities several days later. If convicted, the trio could face up to 20 years in prison for each wire fraud-related charge, while the aggravated identity theft charge carries an additional mandatory two-year prison sentence.
Following the allegations, Telekom Malaysia, via an official statement, said the individuals are no longer employed by the company and confirmed that it had initiated its own internal investigation after suspecting misconduct. It added that information uncovered during the probe was subsequently shared with the relevant authorities.
The company also said it will continue cooperating fully with the US Department of Justice and reiterated that it “upholds strict governance and compliance standards and does not tolerate any form of misconduct.” The DOJ noted that Telekom Malaysia itself will not face charges, citing its self-reporting, cooperation with investigators, restitution efforts, and remediation measures.
(Source: US DOJ [official website] / The Edge Malaysia)
