Nov 13, 2007
CAD begins probe into MLM firm Sunshine Empire
THE Commercial Affairs Department (CAD) has begun investigation
into the affairs of Sunshine Empire following reports of its
converversial business practices.
A police statement on Tuesday advised those who have placed money
with the company to wait for further updates by the CAD.
"More information will be released in due course and persons who
have placed money with the company may be requested to come forward
to assist the CAD in the investigation," said the statement.
On Oct 24, The Straits Times reported that the multi-level
marketing firm had come under scrutiny because it appeared to be
operating like a pure investment scheme, something it did not have
the licence to do.
The MAS placed Sunshine on its September's investor alert list,
which means the company is not allowed to conduct regulated
activities.
MAS has warned people against making investments with unregulated
firms and individuals.
And a new consumer alert has been issued to inform consumers about
get-rich schemes that sound too good to be true.
Based at Toa Payoh HDB Hub, Sunshine Empire has attracted 20,000
people here since it was set up last July.
The man behind Sunshine is Mr James Phang, 48, the founder,director
and international president of Empire Group Alliance, a group
spanning several Asian countries. Sunshine is part of the group,
but Mr Phang does not own it.
MLM firms, which are legal here, typically invite people to pay
cash for the right to market goods to other people. They also get
cash for recruiting other MLM marketers.
Under Sunshine's scheme, people usually put down $12,000 to become
a 'merchant', as it calls users of its online shopping platform
offering thousands of goods, including health supplements, lingerie
and electronics goods.
After signing up, they can buy Sunshine's online goods.
But they are also rewarded with potentially hefty cash rebates,
though these are not guaranteed. Merchants can build their own
sales force as well.
The scheme is structured in such a way that participants are not
required to use the rebates to buy Sunshine's goods.
The cash rebates are based on Sunshine's global turnover. The
option of converting the rebates into cash only makes Sunshine more
attractive than other MLM firms where people must maintain sales
quotas.
Sunshine also operates in Indonesia, Thailand, Hong Kong, Korea and
Taiwan, and has 50,000 merchants. It plans to expand to the United
States by next year.
According to its marketing brochure, Sunshine projects global
monthly turnover of US$100 million ($146 million) for
December.
By Lorna Tan
Hmmmm, i thought only one project that
got up, the rest still "on-going".
Wow, as bold as a lion, going after Uncle Sam Ass.
If CAD clears SE, oh my oh my oh my, better start going to Q at SE
for a Lower Priced GP, before it surged to 20k a
GP~"
off topics,
so far any "bad" news that posted by ST never get a slammed down?
