THE flamboyant founder of Sunshine Empire, who amassed $180 million in 15 months, and his former director were jailed by a court on Friday for running a fraudulent scheme and for faking accounts.
James Phang Wah, 50, and former director Jackie Hoo Choon Cheat, 30, had enriched themselves by at least $8 million through Sunshine's multi-level marketing scheme.
Phang was sentenced to nine years jail and fined $60,000 while Hoo was jailed for seven years.
Phang's wife Neo Kuon Huay, 47, who was found guilty of falsifying payment vouchers together with Phang, was fined $60,000. They did this so that she could receive commissions amounting to nearly $1 million.
Some 20,000 people bought into the flashy scheme, which promised high returns on its lifestyle packages.
Sunshine sold these packages at its plush Toa Payoh Central office for over 15 months, before it was raided by officers from the Commercial Affairs Department (CAD) in November 2007. The packages ranged from $240 to $12,000 and offered attractive bonuses and incentives.
What was unique was its customer rebate points (CRP) system, which allowed participants to use the points to buy goods online. Phang and Hoo had assured participants that CRP was derived from the firm's turnover on its e-commerce platform.
Like other Ponzi-like schemes, rewards for participants came from fresh money secured from those joining later.
James Phang Wah, 50, and former director Jackie Hoo Choon Cheat, 30, had enriched themselves by at least $8 million through Sunshine's multi-level marketing scheme.
Phang was sentenced to nine years jail and fined $60,000 while Hoo was jailed for seven years.
Phang's wife Neo Kuon Huay, 47, who was found guilty of falsifying payment vouchers together with Phang, was fined $60,000. They did this so that she could receive commissions amounting to nearly $1 million.
Some 20,000 people bought into the flashy scheme, which promised high returns on its lifestyle packages.
Sunshine sold these packages at its plush Toa Payoh Central office for over 15 months, before it was raided by officers from the Commercial Affairs Department (CAD) in November 2007. The packages ranged from $240 to $12,000 and offered attractive bonuses and incentives.
What was unique was its customer rebate points (CRP) system, which allowed participants to use the points to buy goods online. Phang and Hoo had assured participants that CRP was derived from the firm's turnover on its e-commerce platform.
Like other Ponzi-like schemes, rewards for participants came from fresh money secured from those joining later.
