It is learned the man had fraudulently obtained about 1,000ha of native land using the fake native certificate.
The suspect is believed to have bought land through a series of purchases in the Sandakan areas.
The man, in his 50s, had purportedly used a fake native certificate issued from Sabah's northern Kota Marudu.
"The man had admitted that he had obtained native land with the use of a fake certificate,'' sources close to the case said on condition of anonymity.
The latest development follows a crackdown by graft busters against a syndicate providing the native certificates for fraudulent purposes.
As of Thursday, a total of 13 people comprising four women and nine men have been arrested for possession of fake native certificates.
Four were arrested in Kota Kinabalu, five in Tawau, two in Keningau and two more in Semporna.
The sources said that they were now in the process of identifying the properties obtained by the non-bumiputras.
"A detailed investigation is underway and a decision will be made on the type of action to be taken against them,'' he said.
The sources said most of the detainees were unaware that they were using falsified certificates, and said some younger claimed they had obtained it from their parents.
"This is why a detailed investigation needs to be carried out,'' the source said.
MACC is also in discussion with the Sabah Lands and Survey Department about the status of the land bought by the non-natives.
Sabah stopped issuing the certificates in 1982.
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