MLM investment scheme allegedly defrauds over 2,000 investors, S$23 million involved

A Singapore-based company, Singliworld, allegedly operated a fraudulent multi-level marketing scheme disguised as a legitimate investment venture, defrauding over 2,000 investors and accumulating more than US$17 million (S$23.12 million) in liabilities over the course of a year.

The scheme was reportedly led by two Malaysians, Leong Koon Wah, 49, and Ng Kuan Chuan, 35, who are currently on trial. The prosecution, during the trial's opening on Monday (March 28), claimed that from March 2014 to May 2015, the two men enticed thousands of investors into a scheme called Singliforex. The scheme promised that a team of professional traders would use the invested funds to trade currency pairs on global forex markets.

Singliforex allegedly offered returns as high as 13% per month, with more conservative returns as low as 2%, making it appear both lucrative and plausible. However, the prosecutors stated that two foreign-registered companies, Triumph Global and Union Markets Limited, posed as legitimate trading brokerages but were actually part of the fraudulent operation. Triumph Global was incorporated in Hong Kong, while Union Markets was based in New Zealand.

Leong, a Singapore permanent resident, was the managing director of Singliworld since its establishment in December 2012 and served as a registered director of Triumph Global from December 9, 2014, to July 17, 2015. Ng was the registered director of Triumph

Global from January 21 to October 3, 2014, and held roles as a director and shareholder of Singliworld HK from September 2014. He was also involved in the management of Union Markets.

The duo jointly managed Singliforex, with Leong overseeing marketing and investor recruitment, while Ng managed the staff at Triumph Global and operated the trading software. In early 2014, Singliworld began soliciting investors for Singliforex, requiring them to fund accounts with Triumph Global or Union Markets. Investors were not allowed to trade themselves but were assured that professional traders would handle the transactions.

Prosecutors argued that these traders and trades were fictitious, and investors were provided with false statements indicating trading activities that never occurred.

Furthermore, Singliforex was revealed to be an illegal pyramid scheme. Investors were encouraged to recruit others, earning money through a rebate structure. This multi-level marketing model led to rapid growth, and by May 2015, over 2,000 investors had been defrauded, with Singliworld's liabilities surpassing US$17 million.
 

Source >> https://sg.finance.yahoo.com/news/mlm-investment-defrauds-2000-investors-23million-012952603.html