Originally posted by ^tamago^:
[b]MLM man linked to
abandoned Indonesian club project
1,000 people lost $2m in the project that was called off just
before it opened[/b]
Straits Times, The
(Singapore)
Prime News
November 7, 2007
Author: Lorna Tan, Finance Correspondent
MR JAMES Phang, the man behind controversial multi-level marketing
(MLM) firm Sunshine Empire, is linked to a failed investment scheme
that resulted in 1,000 Singaporeans losing about $2 million in
total.
About six years ago, these investors had paid up to $3,800 each to
become members of an Indonesian country club, PT Magic Kingdom
Island Resort Paradise.
Mr Phang's firm NOP (Number One Product) was the marketing agent
for the club, which was never built.
The resort was to have been developed on a 200-ha piece of land in
Rempang, which is linked to Batam by bridge, and promised a hotel,
chalets, a golf course and even a 1,000-sq-m shopping mall.
Some investors had paid the club membership fees via monthly
instalments of $300.
The resort was set to open in July 2003, but the project was called
off in May 2003.
It is believed that the investors never received any refund on
their investments.
Mr Phang is adviser to Sunshine and founder of Empire Group
Alliance, of which Sunshine is an associate.
Recently, Sunshine made headlines after it was placed on an
investor alert list by authorities, both here and in Malaysia, as a
result of concerns over its business practices.
In response to queries from The Straits Times, Mr Phang confirmed
that NOP was marketing memberships of Magic Kingdom around 2001. He
said NOP is now inactive.
Mr Phang said he knows many investors believe he is the 'dishonest
businessman' behind the project. But he begged to differ.
'I'm a victim of the failed project too. I was the one who reported
to the police when the project was abandoned...I collected over $1
million from investors but I lost more than $6 million. I was in
debt because of this project but I've paid up almost all of the
debt.'
He said the debt included paying off NOP's tax and banks' credit
facilities.
Mr Phang said that his younger brother was the chief executive of
the project, but declined to elaborate.
He said he never hid the information that he owns NOP. 'I'm not in
the wrong and I'm not scared. I stand upright.'
In a letter in 2004 to the 1,000 investors, PT Magic Kingdom blamed
the Sept 11, 2001 terror attacks on the United States, the Bali
bombings in 2002, the Iraq war and Sars for the project's
failure.
Only $16,931 was left in its coffers, it stated.
When contacted, the Consumers Association of Singapore (Case) said
it had received seven complaints on the failed project. In January
2004, Case met NOP representatives, who said they could not refund
investors as it had suffered big losses in the project.
Investors were advised by Case to file their claims in Indonesia,
where Magic Kingdom was incorporated. Some investors also filed
complaints with the Commercial Affairs Department (CAD). The police
were unable to respond to queries on its probe into PT Magic
Kingdom by press time.
On Oct 24, The Straits Times cited sources as saying that Sunshine
was being investigated by the CAD.
Sunshine has attracted the attention of the authorities as its
activities appear to be like a pure investment scheme - but it is
not licensed for such operations.
Incidentally, Mr Phang has recently claimed that Empire Group
Alliance's property arm is involved in building a marine theme
park, called The Magic Kingdom, in Malaysia.
[email protected]
--------------------------------------------------
'I LOST MONEY TOO'
'I'm not in the wrong and I'm not scared. I stand upright.' MR
JAMES PHANG, whose firm NOP (Number One Product) marketed a failed
investment scheme that led to 1,000 Singaporeans losing about $2
million in total. He said he lost over $6 million himself because
of the project and never hid the information that he owns
NOP.[/b]
Now we know why he needs to restort to such trick to make money
... 
