KUALA LUMPUR, May 29 -- A US court has approved the forfeiture of approximately US$214 million (RM950 million) linked to an alleged "pump-and-dump" fraud scheme involving seven individuals, including five Malaysians.

According to a statement by the US Attorney's Office yesterday, the funds - seized during an investigation led by the Federal Bureau of Investigation (FBI) - will be returned to confirmed victims of the scheme.

"The large forfeiture order of more than $200 million should serve as a warning that federal law enforcement will aggressively pursue fraudulent profits from those who seek to prey upon investors by manipulating the US stock market," read the statement

"Despite the overwhelming manipulation as alleged in this case, ...