MLM firm offered hefty rebates
James Phang, who once claimed to be better than Warren Buffett, stands accused of running a Ponzi-like scheme involving millions of dollars raised from the public. -- ST PHOTO: LIM WUI LIANG
JAMES Phang was in the news back in October 2007 after his multilevel marketing firm Sunshine Empire was placed on alert lists by the authorities both here and in Malaysia.
By then, Sunshine had attracted more than 20,000 people here keen to make fast money. The business was launched in July 2006.
In an earlier interview with The Straits Times, Phang had claimed to be 'a legend' and 'better than Warren Buffett', the US billionaire investing guru.
Under Sunshine's scheme, people usually put down $12,000 to purchase its 'gold plan' which was said to involve the trading of online goods, such as health supplements and lingerie.
The plan offered non-guaranteed but hefty cash rebates.
The Commercial Affairs Department (CAD) launched a probe after concerns arose that participants were pocketing large rebates without ever trading goods and that Sunshine was acting purely as an investment fund without authority.
Monthly cash rebates to participants ceased after the CAD commenced formal investigations in November 2007.
Participants were then offered an option by their 'upline' - the person who recruited them to Sunshine - to cancel their accounts in Singapore and transfer them to a Hong Kong company, EmMax.
Those who did were told to expect monthly cash rebates to resume after six months. A check yesterday with some participants found that those who transferred their accounts have not received any cash rebates.
When The Straits Times visited Toa Payoh HDB Hub yesterday, the names of Sunshine and its affiliates were still on the seventh-floor lift entrance. However, the offices were vacant, except for two workmen, and the interior had been stripped almost bare.
Jackie Hoo, the other key figure in Sunshine, faces 10 charges includnig running a fraudulent business. -- ST PHOTO: LIM WUI LIANG
Neo Kuon Huay, Phang's wife, was charge with falsifying accounts. -- PHOTO: LIANHE ZAOBAO
Yong Wai Hong was accused of making false declarations. -- ST PHOTO: LUM WUI LIANG
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20,000 losers, they deserve it for being so freaking stupid
