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| By Arul John HE HAD just been convicted of 15 criminal charges, but Sunshine Empire founder and head James Phang Wah was cool as a cucumber. Before he took the lift down to the ground floor at the Subordinate Courts yesterday, Phang, 50, declined to be interviewed. His wife, Neo Kuon Huay, 47, added with a scowl: "My husband's sister said that he looked ugly in a photograph that was published earlier. She said she never thought my husband could be so ugly." Phang was all smiles as he walked out of the court building in his dark suit and with his hair stylishly gelled. The couple and Jackie Hoo, 30, Sunshine's former director, were in court yesterday to hear the judgment on the charges against them over their operation of the company, a multi-million-dollar business selling lifestyle packages. Sunshine was reported to have sold packages which offered customers returns in the form of cash rebates privileges (CRP). Early customers would get their returns when new ones joined. Phang, Neo and Hoo were jointly tried for conspiring to "unjustly enrich themselves dishonestly" while running Sunshine. Neo was a director of Empire Emall, a company linked to Sunshine. During the trial, the court heard that out of the $180 million that Sunshine collected from its customers in 2007, $118 million was spent on rebates and incentives to attract new customers. Much of the rest was pocketed by Phang, Neo and Hoo. Tens of thousands of people reportedly bought packages. Phang and Hoo were each found guilty of one charge of fraudulent trading and eight charges of abetting in criminal breach of trust as an agent. Phang and Neowere found guilty of six charges each of falsifying Sunshine's accounts. All three will be sentenced on July 30. Phang was calm even when the trio walked up the stairs to the Subordinate Courts at 9.10am. As photographers clicked away, Phang smiled as his companions walked on calmly. As they headed to the courtroom, they waved to some people who were there to show their support. Before the proceedings, Phang and his lawyer, Mr Subhas Anandan, patted each other on the shoulders. While listening to District Judge Jasvender Kaur's remarks, Phang occasionally looked up at the ceiling while Hool ooked straight ahead. Judge Kaur found Phang and Hoo guilty of fraud. She said the monthly CRP from Sunshine's packages came from the continued sale of new products. Unreasonable returns The returns were also unsustainably high, she added. She said one of the packages, the Gold Prime package, offered a maximum CRP of 160 per cent of its cost, while the Silver Prime package offered a maximum CRP of 120 per cent of its cost. In view of this, she said "its structure needed an ever-increasing flow of money from participants to keep it going". Judge Kaur added the "abnormally high returns" were meant to "dazzle and attract participantswhohad no in-depth knowledge of the scheme" and "it would have been self-evident that the scheme...was destined to collapse and that the participants...would suffer a loss." On the CBT charges, Judge Kaur said the $1 million in commission payments to Neo were unlawful. She added that the commission was made arbitrarily and Neo had told the Commercial Affairs Department (CAD) that she had got the commission "because I am the president's wife and Mr Phang has given this to me willingly". She said the prosecution had established that Phang and Neo falsified Sunshine's accounts in order to reduce Neo's tax liability and cheat the tax authority. Those who bought packages from Sunshine Empire should check the CAD website (www.cad.gov.sg) to find out how they can get their money back. About the case Sunshine Empire had been operating for about 15 months when it was raided by the Commercial Affairs Department. For fraudulent trading, Phang and Hoo each can be fined $15,000 and jailed seven years. For abetting criminal breach of trust as an agent, they can each be jailed for life and fined. For each charge of falsifying accounts, Phang and Neo can be jailed seven years and fined. JAMES PHANG WAH, 50 - Founder and head of Sunshine Empire, set up in 2006. - Known as Lao Da (big brother or chief in Chinese). - Married to Neo Kuon Huay, 47. They have four children. - Lives in semi-detached house in Jurong West. - Grew up in Lim Chu Kang fish farm and left school after O levels. - Worked in shipyard and construction to pay for A-level night classes. - Graduated in economics and statistics from National University of Singapore. - Feature writer for Shin Min Daily News from 1984 to 1990. - Founded Empire Group Alliance around 2000. - Found guilty of one charge of fraudulent trading, eight charges of abetment to criminal breach of trust as an agent and six charges of falsification of accounts. NEO KUON HUAY, 47 - Wife of James Phang, 50. - Director of Empire Emall. - Found guilty of six charges of falsifying accounts. JACKIE HOO CHOON CHEAT, 30 - Former director of Sunshine Empire. - Found guilty of one charge of fraudulent trading and eight charges of abetment to criminal breach of trust as an agent. - Was commended by police in 2007 after he pursued and noted down the licence number of a car involved in a hit-and-run accident. - This helped police nab the driver. This article was first published in The New Paper.
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Tuesday, October 9, 2012
sunshine empire tipu-ing style grsbbed multi-million in Malaysia and Singapore......but only Singapolice charged the culpits....not in Malaysia----a very good study and investigating paper for all
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Originally Posted by BourneID 
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