The Police will be charging six men, aged between 32 and 57, for their suspected involvement in a fraudulent and prohibited multi-level marketing and pyramid selling scheme.
The Commercial Affairs Department investigated a scheme offered by a Singapore company to investors in Singapore and Malaysia between 2014 and 2015. Investors received high returns, purportedly from the company’s trading of leveraged foreign exchange. Investors could also receive commissions based on the trading activities of those they directly recruited, as well as that of new investors recruited by those they brought in.
The six men will be charged in the court on 4 July 2018 with one or more of the following offences:
- Section 340 of the Companies Act for fraudulent trading. If found guilty of the offence, one shall be liable, on conviction, to a fine of up to $15,000, imprisonment for a term not exceeding 7 years, or to both.
- Section 3 of the Multi-Level Marketing and Pyramid Selling (Prohibition) Act (“MLM Act”) for promoting a prohibited MLM scheme. If found guilty of the offence, one shall be liable, on conviction, to a fine of up to $200,000, imprisonment for a term not exceeding 5 years, or to both.
- Section 82 of the Securities Futures Act for not possessing the requisite Capital Markets Services Licence issued by Monetary Authority of Singapore (“MAS”) for holding himself out as carrying on a business in a regulated activity, of leveraged foreign exchange. If found guilty of the offence, one shall be liable, on conviction, to a fine of up to $150,000, imprisonment for a term not exceeding 3 years, or to both.
Members of the public are advised not to deal with unregulated trading platforms. In addition, it is unlawful to:
- Promote or participate in a multi-level marketing scheme or arrangement or a pyramid selling scheme or arrangement.
- Carry on business in any regulated activity or hold out as carrying on such business without a Capital Markets Services Licence issued by MAS, unless otherwise exempted or excluded.
SINGAPORE POLICE FORCE
03 July 2018 @ 11:30 AM