23-9-2024 (SINGAPORE) A controversial gemstone investment scheme in Singapore has left scores of investors, including elderly retirees, struggling to recoup their funds. The scheme, which bears hallmarks of a multi-level marketing programme, has been stonewalling investors for years, prompting some to take drastic measures.
On 23 August, tensions boiled over as approximately ten disgruntled investors descended upon an office in Ubi Techpark, venting their frustrations at staff members. The commotion necessitated police intervention to restore order. Authorities are now looking into the investors’ grievances.
The investment scheme, centred around amber gemstones, offered participants points redeemable for cryptocurrency tokens promising high returns. However, these promises have failed to materialise, leaving many in financial distress.
Among the affected is Shonna Seow, 42, whose octogenarian parents each invested $35,000 in 2017 with Global GC. “We’ve not seen a penny in profits,” Seow’s mother lamented. “The only money we received was a paltry sum for introducing new members, which they misleadingly called profits.”
Another victim, Dennis Tan, 56, invested over US$20,000 in 2015 with USFIA Singapore. Tan reports that the promised profits never materialised, despite the company offering a 10% commission for recommending new investors.
Both Global GC and USFIA Singapore are listed on the Monetary Authority of Singapore’s (MAS) investor alert list. USFIA Singapore, formed in 2014 and struck off in 2020, was linked to USFIA Inc in Los Angeles. The US Securities and Exchange Commission described USFIA Inc as a pyramid scheme, leading to its founder, Steve Chen, being sentenced to 10 years in prison in January 2021 for defrauding over 70,000 investors worldwide.
The current focal point of investor ire is Lionel Wong, also known as Wong Yet Loong, who was a director of USFIA Singapore and registered Global GC in 2015. While Wong is not officially associated with the current companies occupying the Ubi Techpark office – Amtop Holding and Universal Mall – he shares a residential address with their directors and was present during the recent confrontation.
Wong and his staff claim that investments were handled by Estonian-registered MaxiTrading Invest OU, which has since been liquidated. MAS has confirmed that MaxiTrading Invest OU, Amtop Holding, and Universal Mall are not licensed to provide financial services in Singapore.
Legal experts suggest that investors may have grounds for civil claims if they can prove fraud. Daniel Soo, a commercial lawyer, stated, “If investors were misled about potential profits and these representations were false, they could pursue a civil claim for fraud.” However, Walter Silvester of Silvester Legal cautioned that distinguishing between fraud and a failed business venture could be challenging.
The MAS has urged investors to conduct thorough checks before engaging with any entity offering financial products and services. They recommend using the Financial Institutions Directory, investor alert list, and register of representatives to verify the legitimacy of investment opportunities.
