Lessons from Sunshine Empire Ponzi scheme in Singapore

  • Have you been Scammed?
    Follow this advisory from National Crime Prevention Council (NCPC) or call ScamShield Helpline 1799. More info

klarklar

Supremacy Member
Joined
Jan 8, 2012
Messages
9,287
Reaction score
647
http://www.straitstimes.com/singapo...90000-to-ponzi-scheme?login=true&xtor=CS11-86

Mr Choo alone lost about $90,000 of his savings.

He fell into the scheme in July 2007 when a friend and neighbour, Ms Stella Chau, persuaded him to join, emphasising high returns.

"She heard about the business from her colleague, who heard about it from a friend, who heard about it from someone else. It was like a whole chain of people signed up together," he told The Straits Times on Thursday (Dec 28).

"I didn't know it was a con. I don't know much about investments or trading, so I just followed Stella. We both trusted that it was real."

Mr Choo bought four Gold Prime packages costing between $9,600 and $12,000 each after attending a seminar run by a Sunshine associate.

A month later, he received returns of $14,000.

He used this to buy 10 more Gold Prime packages and one Silver Merchant package for $1,200.

Mr Joseph Kwok, president of the Financial Planning Association of Singapore, said the laws are comprehensive in protecting consumers and the punishment in Phang's case was stiff enough to deter potential offenders from defrauding consumers.

But he also said people needed to be responsible for their own choices: "No law is enough if one is willing to be 'cheated' by getting into get-rich-quick schemes."

Mr Kwok advised consumers to first ask if the investment scheme is registered with authorities here.

"If it is not, then consumers need to be alert and ask tough questions with regard to how the return is generated." he said.

"If the return sounds too attractive without requiring the consumers to do much, then one needs to be worried."


Mr Choo claimed he was no longer angry about falling prey to the scam: "The game is over, our money is lost and we cannot get it back.,"

But the experience has soured him on ever making more financial investments.

"It's just not possible anymore. I'll never invest again."
 

SBC

Arch-Supremacy Member
Joined
Mar 19, 2001
Messages
19,623
Reaction score
1,224
It is always real deals till proven otherwise.
 

Perisher

Greater Supremacy Member
Deluxe Member
Joined
Jan 5, 2015
Messages
84,167
Reaction score
10,089
I agree with one of the members, he learnt the wrong lessons.
One should be wise to pick the right investments. Not just looking at returns but also the risk. RRR. And of course, DYODD.
My advise to him will be to start from bonds/cc/savings account. It's the safer way to start investing. Then ETF etc...
 

ExtremeWays

Banned
Joined
Mar 17, 2017
Messages
7,399
Reaction score
1
Lesson to learn: Which scams last forever?

Anything that is fraud are fragile. Fragile things don't last.
 

edwinttt1978

Supremacy Member
Joined
May 13, 2013
Messages
7,078
Reaction score
31
When he invested, he was 68.

At 78 now, he is right that it is just not possible anymore that he should invest again.
Fixed deposits are the best for him.
 

Maeda_Toshiie

Supremacy Member
Joined
May 12, 2007
Messages
6,310
Reaction score
3
When he invested, he was 68.

At 78 now, he is right that it is just not possible anymore that he should invest again.
Fixed deposits are the best for him.

John Bogle, aged 88, still has an investment portfolio of stock and bond funds.
 

edwinttt1978

Supremacy Member
Joined
May 13, 2013
Messages
7,078
Reaction score
31
John Bogle, aged 88, still has an investment portfolio of stock and bond funds.

Mr John Bogle can lose all his investments and still be happy.
His money can last for generations.

Can Mr Choo, a retired electrician, stomach further losses?
 

Perisher

Greater Supremacy Member
Deluxe Member
Joined
Jan 5, 2015
Messages
84,167
Reaction score
10,089
When he invested, he was 68.

At 78 now, he is right that it is just not possible anymore that he should invest again.
Fixed deposits are the best for him.

Didn't noticed his age. You are right. No time to dabble in stocks. Still have some time for safer stuff like bonds though.
Better returns then FD.
 

Maeda_Toshiie

Supremacy Member
Joined
May 12, 2007
Messages
6,310
Reaction score
3
Mr John Bogle can lose all his investments and still be happy.
His money can last for generations.

Can Mr Choo, a retired electrician, stomach further losses?

Will you lose money if you invest in Singapore Government Securities? The ABF? The STI ETF?
 

edwinttt1978

Supremacy Member
Joined
May 13, 2013
Messages
7,078
Reaction score
31
I heard you the first time. You don't lose money with SG government bonds either. Which do you think is more likely to collapse, DBS or MAS?

Which one is more likely to collapse is irrelevant.

What is relevant is that at a ripe age of 78, fixed deposits which mature annually are the best for him.
 

Perisher

Greater Supremacy Member
Deluxe Member
Joined
Jan 5, 2015
Messages
84,167
Reaction score
10,089
Which one is more likely to collapse is irrelevant.

What is relevant is that at a ripe age of 78, fixed deposits which mature annually are the best for him.

I think the bonds are a better fit. SSB can be redeemed monthly pro-rated.
 
Important Forum Advisory Note
This forum is moderated by volunteer moderators who will react only to members' feedback on posts. Moderators are not employees or representatives of HWZ Forums. Forum members and moderators are responsible for their own posts. Please refer to our Community Guidelines and Standards and Terms and Conditions for more information.
Top