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Sunshine Empire Updates

Blogged By: Low Hang Wei @ October 21st, 2008 - 6:33 pm

It has been about a year since the day CAD started investigating the activities of Sunshine Empire. Till this day, not much news has been released on the outcome and the question most SE members have is what’s going to happen to their money. Do they have any chance to get any part of their money back? I am writing this post since I suddenly decided to find out what’s going on rather than assuming that all SE members cannot get their money back.

Before I go in depth into the discussion, I would first like to inform the public that these are simply my opinions. Please do not rely on any information here, since I may be wrong. Just take it as a person’s ranting or better still, treat everything as just a story.

For the background, this post came about after a presentation by my classmates about MLM and Sunshine Empire was included in their presentation. That got me started into digging up more information to determine if there is any way for SE members to recover their monies.

Even with my limited knowledge of law, I know that there exists a small claims tribunal and that was basically the only way to pursue the matter since going to court is expensive. I went through the checklist to determine if a case can be brought upon and I affirmed this possibility. Basically, there are several grounds for the case. Firstly, non delivery of goods or services as specified in the contract. Since their emall is no longer existent and their emcall was never set up for me, these two goods were never delivered. Secondly, on the basis of misrepresentation which I think is quite obvious.

Determined to have a chance rather than relying on fate, I was pretty certain that I can go ahead with lodging the claim for a cost of just $20. However, I decided to call CAD as well just to clarify certain matters, especially on whether SE funds were really freezed. According to the person I spoke to, SE funds was freezed by a court order and it can only be unfreezed if there is another court order to unfreeze it. Basically, that seems to mean that even if the referee in the small claims tribunal decide to award me the damages, I cannot exercise it for money.

At this point, I think that there is nothing much we can do unless someone with more experience in law tells us otherwise. Anyway, for your information, the case is supposedly investigated by AGC now instead of CAD. Regardless of how the case goes, I believe that getting back the full sum of money will truly be almost impossible. I say so because I don’t believe that a significant amount of money had been frozen, judging from their compensation plans from referring people.

Maybe someone else knows something more concrete, since I heard that some people were able to get back part of their money. I look forward to seeing solid comments on possible actions to take.

Blogged Under: Income Opportunities

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19 Responses to “Sunshine Empire Updates”

  1. 1
    Eugene Says:
    October 22nd, 2008 at 12:51 pm

    Now everyone is talking about the American economy and eclections, nice to read something different. Eugene

  2. 2
    red coloured stone Says:
    October 22nd, 2008 at 8:37 pm

    Hello, Hang Wei.

    Did you manage to recover your capital?

    Hang Wei says:
    No and I don’t foresee myself recovering back any significant part of it.

  3. 3
    Lucky Tan Says:
    October 24th, 2008 at 8:28 pm

    You will probably get more from those frozen accounts than what the banks are willing to compensate those poor Lehman Minibond holders.

    It was obvious the SE is a crappy unregulated entity with a shady scheme. You knew it when you bought it.

    The banks on the other hand sold those minibonds as “capital protected” products - protected but can still end up with nothing. I’m not sure who the bigger crooks are our banks or the masterminds of the SE scam.

    Hang Wei says:
    Firstly, I would not say that “It was obvious the SE is a crappy unregulated entity with a shady scheme.” Firstly, there is mis-selling involved and the mis-selling is no less than how the banks sell these capital protected products that can in fact cause you to lose all your capital. I believe that the person who referred me is not the only one who told these lies, maybe in part because he was lied to as well. Their misrepresentation includes how many businesses they have and how much revenue these businesses have been generating.

    Anyway, due diligence is the factor that causes most people to lose money. If I had checked up on SE businesses, I may have found that they are virtually non-existent, instead I believe the videos I saw and the words of a person I barely knew. If those minibond holders had read about the difference between capital protected and capital guaranteed, then they may have escaped as well.

    For the benefit of those who do not know, capital guaranteed is the only correct term to imply you can get back your principal, unless the bank you are investing with collapses. Capital protected is pretty shady, since it only implies that some action had been done or some structure in place to prevent investors from losing their money.

    Mis-selling can occur anywhere, so it makes even more sense to do our own due diligence and from honest sources. There are people who contacted me to ask if they should put their money in SE after seeing my blog and I adviced them not to, so they indeed did not. Their due diligence saved them, but they may not have been saved if I had been self-interested and adviced them against their own interests.

    To sum up, information is very useful nowadays, but we have to be careful where we get our information from.

  4. 4
    Victor Says:
    October 24th, 2008 at 11:44 pm

    How do you define mis-selling? Insurance agents claim that you can get a high yield of about 10% or more, but essentially targeted at a lower %. For instance Prudential yield is targeted at 4%, but was never made known to me. Is this considered mis-selling? I’ve no doubt that Prudential insurance is higher than other insurance policies, HOWEVER the non-guaranteed portion of the Prudential is higher than other companies similar policies. In other words the guaranteed portion of Prudential insurance policies is lower than that of other insurance policies. Btw I don’t work in insurance, and don’t represent any insurance companies

    Maybe your wife would like to address this?

    Hang Wei says:
    How do you know that my wife is an insurance agent? Anyway, it would be inconvenient for my wife to answer these questions, since she is an agent, but I will answer your questions, since I know quite a bit about the insurance industry as well. Firstly, you seem to be confused over different policies, so I will first explain that. For investment-linked policies, the projection of returns on paper is usually 5% and 9%, according to requirements. Most agents would probably say that there is possibility of higher as well as lower returns and there is usually no guaranteed portion for investment-linked policies.

    For endowment policies, there is usually a guaranteed portion, but it is almost impossible for the plan to reap a 10% return. If any agent claims that an endowment policy will make 10% for you on an annualized basis, he/she is probably misrepresenting something. Current projections are about 3% to 4% and these returns are not guaranteed, although certain portions may be guaranteed.

    Anyway, I would urge people not to trust these projections as they are made by actuarists and the calculations may be wrong. I spotted some major mistakes in the benefit illustrations of an insurance company and none of the agents actually knew about it. The actuarists only found out about the mistakes much later. Additionally, even if the figures are calculated correctly, they are based on projections and not supposed to be realized figures.

    I think that for policies, the guaranteed and non-guaranteed proportions for policies do not make much difference. Basically, when insurance companies impose higher guarantees, they have to invest more conservatively than necessary and may result in lower returns than may be achievable, especially when endowment plans typically have a longer time horizon. Typically, the investments for most endowment plans are already conservative enough if you ask me, but someone else may have differing opinions. It depends a lot on your personal preference, less guaranteed portion will almost always give you a higher expected return.

    Additionally, I do know that certain plans offer differing guaranteed portions although they are both endowment products, which means that you can speak to your agents if you intend to have higher or lower guaranteed proportions. Anyway, in your case, you seem to be mis-sold to by some agent and I just have to say that black sheeps exist everywhere. Not many agents know a lot in their field, since they are only interested in selling, but the agents who stay for a longer term are usually more clear of the products.

    For example, in recent markets, a lot of people have lost money and scolded their agents. My wife averted this potential disaster because I have been telling her since last year that investments are going to go down and advised her to avoid projecting just rosy scenarios. Sure, her sales in investment may not be as good as other advisors who paint the best possible scenarios, but at least she has peace of mind. If you just listen to which financial consultants paint the best picture, you may be in for a big surprise, especially like now. When it comes to a financial consultant, the most important factor to look out for is integrity and judging from your comment, your advisor clearly does not have that.

    You may want to switch a company or change an advisor. Each companies have their own strengths and the cheapest may not be the best. I do recommend buying from a few different companies. For example, NTUC’s policies are known to be cheaper, but I did not have positive experiences with their service standards. Prudential agents tend to be more willing to provide better service, since their commissions are higher and Prudential also has fast claims settlement and that is something you truly need in a crisis. The last thing you want is getting your money only a year later, when you need it now. My Aviva policy is a group insurance, so I can’t comment on that, since the comparison will be biased. Anyway, if there is any way for you to get group insurance, do note that it will probably be the most value for money insurance that you can get.

  5. 5
    qwerty Says:
    October 26th, 2008 at 5:26 am

    It is better to get basic health insurance (life if you are the bread winner) without all those investment link.

    Take the difference and invest in them yourself. You are better off not paying for those fees.

    The fact that insurnce agents get a cut from selling those products means there is a conflict of interest like the relationship managers involved in the mini bond issues.

    I never buy investments from banks and insurance companies because of the high fees and middle man cut. Even the legitimate ones are bad for the long term because of the high fees and cost structure.

    Hang Wei says:
    Yes, generally their fees are higher than if you were to buy mutual funds from online sources at 1.5% sales charge, compared to a sales charge of 3% for insurance and banks. Additionally, there is often an extra charge for guaranteed return of a minimum amount in the event of death, meaning that if investments drop from $5,000 to $1,000 and someone holding the investment pass away during this time, their family will still get back from $5,000 to $7,500, depending on the terms. It may be good if you are concerned about falling investment in the event of death, but I personally think that you should have other life insurance to cover this. Anyway, I believe banks have additional charges other than this, but cannot say for sure.

    However, it may be possible that sometimes buying an investment-linked policy is actually a better tradeoff than buying term and investing the rest. The reason being that investment-linked policies may have lower assurance charges than term policies due to single underwriting. Yes, insurance companies charge for underwriting, their underwriters don’t work for free. It’s not very clear cut which is better, since you have to measure the costs directly by applying some simple analysis which most agents won’t know how to do also.

    Lastly though, buying term and investing the rest does give you more choices as to where to invest your money, especially if you think that the funds of the company of your insurance is not up to standard.

  6. 6
    qwerty Says:
    November 1st, 2008 at 10:13 am

    Even with the higher assurance charges in term. If you do the math, you realize that it is still much cheaper to get a term and an index fund.

    Forget about normal mutual funds, I think they are too expensive.

    Index funds like vanguard VFINX only charge 0.15% as expenses and has no front load.

  7. 7
    natasilem Says:
    November 10th, 2008 at 12:23 am

    Hi,
    I would like to find out more about Sunshine Empire and its operations URGENTLY. May I have your email? Alternatively, you can contact me via my email. I believe you will be able to find it when i post this comment. Thanks in advance.

  8. 8
    C.H. Says:
    November 14th, 2008 at 3:09 pm

    I like post 3. Lucky Tan mentioned “… the banks on the other hand sold those minibonds as “capital protected” products - protected but can still end up with nothing. I’m not sure who the bigger crooks are - our banks or the masterminds of the SE scam?”

    While SE investors had never complained against SE because SE had never failed in giving returns (before the MAS-CAD-SE saga), MAS-CAD should NOW review their actions against SE now that MAS has thoughts about itself after the minibond saga.

    Why stop a returns-giving-promptly company last year when this year about 10000 investors had misgivings on registered entities? Why didn’t warn the public over the selling activities of involved banks in the minibond? Why never warn that those products are very complex?

    CAD/MAS should summon back James Phang NOW and get the latter to return money to investors, just like MAS said it wanted banks to act responsibly over the minibond saga.

  9. 9
    Singapore Merchant Says:
    November 25th, 2008 at 10:03 am

    Biggest Scam in Asia : NiuTrend Lifestyle & Emmax (Hong Kong )

    Sunshine Empire(James Phang) already closed down by Singapore, Thailand, Malaysia & Indonesia government . More than 90,000 victims have loss a lot of their hard earn money .

    Sunshine Empire changed their name to Emmax & NiuTrend Lifestyle

    Emmax & NiuTrend Lifestyle currently still scam at : Singapore,Malaysia, Thailand ,Dubai ,China ,Hong Kong , Macau ,Taiwan ,Japan ,Korea & India .

    James Phang & Colin Hoo currently
    wanted by Thailand Police ,Malaysia Police & Indonesia Police .

    Do not invest any of your money for the below mention illegal scam company .

    Black listed investment SCAM company in Asia:

    1) Sunshine Empire
    2) Emmax (Hong Kong)
    3) NiuTrend Lifestyle (NTI)
    4) Eazy Max
    5) Dynasty Club
    6) Empire Entertainment Dynasty (EED)
    7) Empire Property Venture (EPV)
    8) Em-Call
    9) SEA Net International (Dubai)
    10) Empire Group Alliance (EGA)

    Please forward this mail to all of your friends & relatives !!!

    Thank you .

  10. 10
    Inside Story Says:
    November 26th, 2008 at 9:06 am

    Bad news for Emmax ,

    Emmax lost USD2.7 Billion joined venture with Sands Macau 金沙娛樂場 for Empire Club/Dynasty Club. Sands (Macau) currently facing a very serious financial problem.

    Thanks to James Phang’s stupid brother Hillary Phang( Emmax’s Feng Shui Advisor).

    Of course , both idiot (James Phang & Hillary Phang ) wounldn’t feel the pain of losing USD2.7 Billion. It is not their own money . That is all member/merchant’s hard earn money.

    Hillary Phang (Founder and Chairman of NiuTrend Lifestyle) don’t know anything about Feng Shui .He caused Emmax lost money and now he pretend nothing is happening. Keep quiet like a stupid dirty rat.

    Hillary Phang’s so call Feng Shui is all bullshit and cheat people .Talk big to con people. Same as James Phang . Another scammer was born.

    http://singaporenewsalternative.blogspot.com/2008/11/las-vegas-sands-macau-unit-faces-risk.html

    http://www.chinalandscapearchitect.com/2008/11/13/sands-macau-finance-needed-and-possible-job-losses/

    http://www.lifeofguangzhou.com/node_10/node_37/node_83/2008/11/12/122645432054828.shtml

  11. 11
    Sam Mok (EmMax) Says:
    November 26th, 2008 at 4:47 pm

    IMPORTANT NOTICE 重要通告
    Dear Our Valued Distributors ,
    亲爱的会员，

    Emmax member who can complete their Fast Start 1-2-2-8 Program from October 1st to December 1st can qualify to attend the PSC course in December 2008.

    Mr. Colin Hoo and Mr. Jackie Hoo and their team Will be coming to Dubai to conduct the course free.

    “EmMax will be so powerful that no law can touch us”

    For any further inquiry you may contact Emmax Management :00852-2377-1777 or 00852-2199-7887.

    Regards,
    Sam Mok
    The EmMax Management Team
    帝无限管理层

  12. 12
    Anti EmMax Says:
    December 5th, 2008 at 9:50 am

    To All singapore,Malaysia,Indonesia & Thailand merchant (victims) ,

    Since we all wanted to know when Emmax can pay us our “refund Money , why not we email Emmax(Hong Kong) directly ?

    Try sent email to all address as below :

    ceo@em-max.com,service@em-max.com,,feedback@em-max.com,training@em-max.com,productfaq@em-max.com,technical@em-max.com,marketing@em-max.com,enquiries@icash-card.com

    We are very sure that Emmax will try to ignore your email by :

    1) no firm answer about the “Refund” date
    2) reply your by computer auto-genarate email

    If Emmax done that to you ,let us know in this blog .We all will proceed to another level .

  13. 13
    teuku Says:
    December 11th, 2008 at 8:07 am

    Sunshine empire is a monster. The victims of the monster need to be united to get their hard earned money back.

  14. 14
    Singapore Merchant Says:
    December 11th, 2008 at 10:14 am

    Everytime stupid James Phang change his name of company , members loss all their investment money .

    2001
    NOP(Number One Product):
    1) 1000 Singaporeans losing about $2 million in total.
    2) Scam Project
    3) Believed that the investors never received any refund on their investments.

    2003
    NTI (Niu Trend Lifestyle)
    1) James Phang invest in NTL to helped his brother Phang Song Hua who facing bankrucy.(All money is comes from members).
    2) All NTI member didn’t not earn money but loss all their money.

    2007 (November)
    Sunshine Empire,Singapore:
    1) Shut Down by Singapore Government (CAD)
    2) 30,000 Singaporeans losing millions of dollar.(Member’s Money)
    3) All Merchant never received any refund on their investment

    2008( Feb )
    Sunshine Empire,Malaysia :
    1) Shut Down by Malaysia Government
    2) 20,000 Malaysians been cheated by James Phang & losing millions of dollar.(Member’s money)
    3) EMall loss USD 1.8 million merchant’s money.
    4) All Malaysia Merchant never received any refund on their investment

    2008 ( April )
    Emmax Hong Kong :
    1) Emmax is Not Approved by Hong Kong SC
    2) Joint venture with Sands(Casino) . Loss USD2.7 Billion member’s money.

    James Phang just keep spending and loss the money .

    Member get all the suffering .

  15. 15
    innocent_74 Says:
    December 12th, 2008 at 6:56 am

    I am also the victim of this SE scam and I invested in it while residing in Texas, US based on the recommendation from my friend. Can someone suggest whether there is still some hope to retrieve my hard earned money?

  16. 16
    Singapore Merchant Says:
    December 15th, 2008 at 1:38 pm

    Hi innocent ,

    even Emmax don’t want to give explaination about this .

    We also don’t know how to give suggestion to you .

    You better go and make a police report about this .

  17. 17
    Chan Says:
    December 22nd, 2008 at 12:05 am

    Anyone else think Land Banking is also a Ponzi ripoff ? Just much longer between investing and knowing you lost.

  18. 18
    Confused Says:
    December 23rd, 2008 at 4:30 pm

    Why is Sam Mok broadcasting such news over here? Doesn’t EmMax has their own website?

    Secondly, there’s no explanation on where the money taken by Sunshine empire goes to? They simply say that the company is not responsible for any refund. What makes you think that members of sunshine empire, who lost their money with Sunshine Empire, will now invest in EmMax, which might potentially end up in the same situation? If collapse will the next line be “XXX will be so powerful GOD can’t destroy us”

    What the hell is going on? I seriously think the author of this website should stop broadcasting by EmMax. It doesn’t make any sense. Is as good as saying we should continue investing with Bernard Madoff. He’ll become stronger no Law can stop him.

  19. 19
    Singapore Merchant Says:
    January 6th, 2009 at 8:42 am

    Everytime stupid James Phang change his name of company , members loss all their investment money .

    2001
    NOP(Number One Product):
    1) 1000 Singaporeans losing about $2 million in total.
    2) Scam Project
    3) Believed that the investors never received any refund on their investments.

    2003
    NTI (Niu Trend Lifestyle)
    1) James Phang invest in NTL to helped his brother Phang Song Hua who facing bankrucy.(All money is comes from members).
    2) All NTI member didn’t not earn money but loss all their money.

    2007 (November)
    Sunshine Empire,Singapore:
    1) Shut Down by Singapore Government (CAD)
    2) 30,000 Singaporeans losing millions of dollar.(Member’s Money)
    3) All Merchant never received any refund on their investment

    2008( Feb )
    Sunshine Empire,Malaysia :
    1) Shut Down by Malaysia Government
    2) 20,000 Malaysians been cheated by James Phang & losing millions of dollar.(Member’s money)
    3) EMall loss USD 1.8 million merchant’s money.
    4) All Malaysia Merchant never received any refund on their investment

    2008 ( April )
    Emmax Hong Kong :
    1) Emmax is Not Approved by Hong Kong SC
    2) Joint venture with Sands(Casino) . Loss USD2.7 Billion member’s money.

    2009 ( January)
    Emmax Hong Kong
    1) Emmax still is not approved by the Hong Kong SC and Beneficence International investment (Group) Company limited
    2) Another New Scam : Online Gamble (Grand Elitia)
    3) Collecting Money from members to invest in online gambling .

    James Phang just keep spending and loss the money .

    Member get all the suffering .

    Emmax want member to suffer.

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