James Phang Wah
James Phang Wah | |
|---|---|
| Born | Singapore |
| Alma mater | National University of Singapore[1] |
| Occupation(s) | Founded Empire Group Alliance which included Sunshine Empire (2003), and Number One Product (1990)[1] |
| Organization | Sunshine Empire |
| Criminal status | Released on 20 December 2017 (Singapore)[1][5] |
| Spouse | Neo Kuon Huay |
| Conviction(s) | July 2010[1] |
| Criminal charge | Eight (8) charges of Criminal Breach of Trust §409, six (6) charges of falsification of accounts §477A, and one (1) charge of fraudulent trading §340(5), Singapore;[2][3] two (2) charges of accepting deposits without licence §25(1) and §106(1) of the Banking and Financial Institution Act 1989, Malaysia[4] |
| Penalty | 9 years' imprisonment, and $60,000 fine (Singapore)[2] |
| Partner(s) | Jackie Hoo Choon Cheat and Neo Kuon Huay |
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James Phang Wah is a convicted felon who was released from prison on 20 December 2017[1] after serving a jail term. Before his arrest and conviction, he was the founder and "international president" of the now-defunct multi-level marketing firm, Sunshine Empire, an unlicensed 'investment' company that was in fact a Ponzi scheme. Sunshine Empire is part of a complex network of different businesses known as the Empire Group Alliance that Phang had set up in 2003.[1]
Under the ponzi scheme, 20,000 Singaporeans, including students and retirees, were lured into buying "lifestyle packages", that they believed could earn highly profitable cash payouts. A total of nearly S$190 million was swindled from the participants, of which only S$21 million was recovered by the Singapore Authorities.[1]
Commercial Affairs Department investigation[edit]
Phang was investigated by Commercial Affairs Department in November 2007, two months after the Monetary Authority of Singapore placed Sunshine Empire on the investor alert list.
On 2 February 2009, Phang, his wife and Hoo were arrested and were remanded overnight. They were subsequently released on bail of $600,000 each and their passports impounded. They were driven away in a convoy of Mercedes-Benzes and BMWs. He was addressed as 'Lao Da' ('chief' in Mandarin) as he got into his car.[6]
On 3 February 2009, Phang, with three others including Jackie Hoo Choon Cheat, a director of Sunshine Empire were charged with fraudulent trading, failure to maintain proper accounting records of Sunshine Empire and criminal breach of trust as an agent of Sunshine Empire.[7]
Phang faced six charges of falsification of Sunshine Empire’s accounts and one charge of false declaration of the share capital of Empire Communications Technology Pte Ltd. He also faced three charges for possession of uncensored and obscene films at his Westwood Avenue home.[8]
His wife, Neo Kuon Huay, a director of Empire Emall (S) Pte Ltd faced six charges of falsification of Sunshine Empire’s accounts under Section 477A of the Penal Code and one charge of false declaration of the share capital of Empire Emall (S) Pte Ltd.[7]
Phang, with three others, are claimed trial with Subhas Anandan representing all four.[8]
On 16 July 2010, Phang and Hoo were found guilty of perpetuating fraud and criminal breach of trust. Phang and his wife were also found guilty of falsifying accounts.[9] On 30 July 2010, Phang has been sentenced to nine years' jail and fined $60,000 while his wife was also fined $60,000.[10]
Release and criminal charges in Malaysia[edit]
Phang was released on 20 December 2017. However, a day after his release, he faced charges of fraud which he committed in Malaysia. He was currently on trial for the crimes he committed in Malaysia.[11] He was charged on 22 December 2017, for two counts of accepting deposits without a valid licence at Sunshine Empire's two premises in Kuala Lumpur, between 14 July 2006 and 17 October 2006, as well as between 18 October 2006 and 4 April 2008.[12][13]
Reimbursement[edit]
The Singapore Authorities confiscated S$21 million out of the S$190 million of swindled funds, but has yet to reimburse any of the victims.[14]
Controversial claims[edit]
During media interviews, Phang described himself as a legend and 'better than Warren Buffett'. However, his name has never appeared on the List of Singaporeans by net worth, which lists all the billionaires and millionaires in Singapore. It is also not known whether James Phang Wah has met Warren Buffett. In addition, Phang also claimed to have over one million students worldwide and to control more than US$300 million (S$439 million) in assets. Before his arrest and conviction, Phang emphasised that he 'would not harm anyone and my businesses are legal'. He also claimed that in his seminars, his loyal participants would also shout "Father, I love you!".[15] As Phang's name did not appear on Singapore's 40 Richest list from Forbes in 2007[16] and 2008, his claims to personal success and wealth is therefore highly improbable.[17]
Personal life[edit]
Phang is married to Neo Kuon Huay. He has four children.
References[edit]
- ^ a b c d e f g Hussain, Amir (18 May 2018). "Guilty As Charged: Sunshine Empire duped investors of millions with Singapore's biggest Ponzi scheme". The Straits Times.
- ^ a b "Phang Wah and others v Public Prosecutor [2011] SGHC 251". Singapore Courts.
- ^ "Freed from S'pore prison after 9 years, local king of Ponzi scheme faces M'sia jail time". Mothership. 21 December 2017.
- ^ "Ponzi scheme founder goes from Singapore jail to KL court". Malay News. 22 December 2017.
- ^ Lai, Linette (8 January 2018). "The rise and fall of Sunshine Empire". The Straits Times.
- ^ Tan, Lorna; Chong, Elena (4 February 2010). "Sunshine chief charged". The Straits Times. Retrieved 23 February 2010.
- ^ a b Commercial Affairs Department (CAD) (26 November 2009). "Sunshine Empire Pte Ltd FAQ". Singapore Government. Archived from the original on 21 February 2009. Retrieved 23 February 2010.
- ^ a b Chong, Elena (February 3, 2010). "4 Charged Over Scam". The Straits Times. Archived from the original on March 9, 2009. Retrieved February 23, 2010.
- ^ Tan, Lorna; Singh, Khushwant (16 July 2010). "Sunshine Empire trio guilty". The Straits Times. Retrieved 16 July 2010.
- ^ "Sunshine empire trio sentenced, ex-head gets 9 years' jail for fraud". Channel NewsAsia. 30 July 2010. Retrieved 30 July 2010.
- ^ "Freed from Singapore jail, Sunshine Empire founder James Phang claims trial in Malaysia to accepting illegal deposits". The Straits Times. 21 December 2017. Retrieved 29 May 2020.
- ^ "Singaporean claims trial to taking RM230 mil in illegal deposits". FMT Media Sdn Bhd. 21 December 2017.
- ^ "Sunshine Empire founder charged with illegal deposits taking". Sun Media Corporation Sdn. Bhd. 21 December 2017.
- ^ "Victims of Sunshine Empire scam yet to recover lost money, since S'pore authorities confiscated S$21mil funds over 13 years ago". Online Citizen. 21 March 2021.
- ^ 'I'm a legend - better than Warren Buffett'
- ^ Singapore's 40 Richest Forbes list 2007
- ^ Singapore's 40 Richest Forbes list 2008