U.S. charges Telekom Malaysia executives in $20 million fraud scheme

Federal prosecutors in Manhattan have charged three senior Telekom Malaysia employees in an alleged fraud scheme that siphoned more than $20 million from the state-linked telecom through false statements, forged records and sham transactions. The case puts a foreign corporate group squarely in the reach of U.S. anti-fraud enforcement, with prosecutors saying the misconduct ran through Telekom Malaysia’s American subsidiary and touched U.S. counterparties, supervisors and auditors.

The Justice Department said the scheme involved four interconnected frauds and spanned years of activity. Investigators allege that Mohd Hafiz Lockman, Mohd Yuzaimi Yusof and Khanh Thuong Nguyen manipulated records, impersonated corporate and individual identities, and moved company money into accounts they controlled. The charges include wire fraud conspiracy, wire fraud and aggravated identity theft.

One central allegation involved a capacity sale that was pushed as an $54 million transaction for eight terabytes of service, even though only six terabytes had actually been purchased. Prosecutors say the excess capacity was then resold to others and the proceeds were routed through a sham entity. They also accuse the defendants of inflating cable-purchase costs and seeking reimbursement for fabricated expenses, while using fake payroll-style conduct and other fictitious transactions to shift money out of the company.

The arrests and surrenders came in rapid succession. Mohd Hafiz Lockman was arrested at San Francisco International Airport on April 20, 2026. Khanh Thuong Nguyen surrendered to authorities on April 22, and Mohd Yuzaimi Yusof followed on April 23. The case has been assigned to U.S. District Judge Dale E. Ho in Manhattan federal court.

Telekom Malaysia said it first opened an internal investigation in December 2025 after suspecting misconduct. The company terminated the three employees on February 14, 2026, then hired external legal counsel and forensic specialists before referring the matter to U.S. authorities in early April. Telekom Malaysia said the issue had not caused material disruption to its operations or TM USA’s business in the United States and was not expected to materially affect the group’s finances.

The company’s U.S. unit, Telekom Malaysia (USA) Inc., was incorporated in Delaware on May 26, 2000, to let the group provide international facilities-based and resale common-carrier services in the United States. That footprint helps explain why American prosecutors claimed jurisdiction over a case tied to a Malaysian telecom: the alleged fraud involved a U.S. subsidiary, U.S.-based conduct and money movements that crossed borders.

U.S. Attorney Jay Clayton said the charges came within weeks of the company’s self-report. For global investors, the case is a reminder that cross-border telecom operations can create both opportunity and exposure, and that U.S. prosecutors are willing to act when foreign corporate misconduct intersects with American markets and institutions.