Thread: The End of SunShine Empire
"Between August 2006 and November 2007, more than 2,000 packages were sold, bringing in about $180 million to Sunshine's coffers.
"In 2007, the Commercial Affairs Department moved in to investigate its dealings. Only $21 million was seized by the authorities.
Where are the rest??
Me thinks the CAD has severely failed in its duty in protecting investors in this SG company.
Perhaps these MLM schemes should be more closely regulated: e.g. requiring scrutiny of business plans, monthly reporting of accounts/ capital remaining etc that is also made quasi public like the reporting necessary for public listed companies in view of the risk of people being swindled by such Ponzi schemes.
Seems like almost 90% of the original paid up capital had disappeared by the time the CAD caught up with them and still the guy has the cheek to appeal- the prosecutor should prove his scheme to be a Ponzi one (not an accidentally bad business plan) and prosecute him as such for that. [Sunshine Empire founder seeks clarification from Court of Appeal]
Better still, Singapore law should allow the later investors of the ponzi scheme to sue the earlier (those who profited handsomely) for their losses since the entire scheme was in the first place ILLEGAL.
In fact, in the David Rasif case, didn't 2 goldsmiths lose almost 2 kg of gold to confiscation by the law society pending re-distribution to all victims of the runaway lawyer Rasif, simply because they had unknowingly bought gold from Rasif (/ his intermediaries) whose gold from UOB bank [Man jailed for selling rogue lawyer Rasif's gold bars] had in the first place been purchased using misappropriated client monies? [High Court to decide on who gets what]
Where may I ask is the first class political leadership and judiciary?
PS: I'm not a lawyer nor legally trained, but this is what I see.
01 Feb2012: The End of SunShine Empire
01 Feb2012: Sunshine Empire pair jailed 9 years / 7 years
01 Feb2012: Sunshine Empire trio guilty
01 Feb2012: [Legal]Compensate victims losses in Ponzi scheme from winner's profit, so nobody can possibly gain.