Singaporean behind MLM firm Sunshine Empire dragged to Malaysian court a day after prison release
What rotten luck this man has — but maybe all Ponzi scheme masterminds deserve it. James Phang Wah, the Singaporean founder of scorned multi-level marketing firm Sunshine Empire has been charged in Malaysia a day after his release from prison here. Out of the frying pan, into the fire — with the frying pan available for cheap if you recruit your friends to get financial freedom with passive income!
Sentenced to nine years in jail (looks like he got out earlier) and fined S$6,000 in 2010 for running a fraudulent trading company and falsifying accounts, Phang faces two fresh charges in Malaysia today under the Banking and Financial Institutions Act 1989, Channel NewsAsia reported. The man is accused of accepting deposits without a valid license between 2006 and 2008 when he assisted the management of Sunshine Empire’s Malaysian affiliate.
According to his lawyer’s statement to the press, Phang was shocked about the charges as he believed that the case was over in Singapore, and that Malaysian authorities would not be pursuing him for alleged offences in Malaysia. Furthermore, Sunshine Empire’s Malaysian affiliate already pleaded guilty to two charges of the same offence, and was fined RM1 million (US$245,700) for each back in 2010.
Bail has been set at RM 1 million for each charge, and Phang will be required to hand over his travel documents and report to his nearest police station once a month. If convicted, he would face a maximum fine of RM10 million (US$2.46 million) and/or up to 10 years in jail.
Now defunct, Sunshine Empire faced intense scrutiny by the Monetary Authority of Singapore and was even placed on an alert list in September 2007, CNA reported. The company was raided by the Commercial Affairs Department two months later.
It had promised its recruited salespeople that they could accumulate profits without buying or selling products — a Ponzi-like pyramid scheme that only provided returns to older investors, paid for by new, naive investors.
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Phang’s role was the shadow director of Sunshine Empire, which had reportedly victimized more than 20,000 Singaporeans (mostly teenagers) and rewarded top scammers with luxury cars.
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Source : https://www.msn.com/en-sg/news/singapore/singaporean-behind-mlm-firm-sunshine-empire-dragged-to-malaysian-court-a-day-after-prison-release/ar-BBH6k7Z