The Commercial Affairs Department investigated a scheme offered by a company based outside of Singapore to investors in Singapore between 2013 and 2015. The company promised investors monthly returns of about 6 to 8%, purportedly derived from the company’s trades in leveraged foreign exchange. Investors in the scheme could also receive referral commissions both from recruiting new investors to the scheme, and from the recruitment efforts of the new investors they brought in.
\Two men and one woman, aged between 44 and 61, were subsequently arrested on 8 January 2018. The three suspects will be charged in State Courts on 9 January 2018 with the offences under Section 3 of the Multi-Level Marketing and Pyramid Selling (Prohibition) Act (“MLM Act”) for promoting a prohibited MLM scheme and Section 82 of the Securities Futures Act for not possessing the requisite Capital Markets Services Licence issued by MAS for carrying on a business in a regulated activity. If found guilty under Section 3 of the Multi-Level Marketing and Pyramid Selling (Prohibition) Act (“MLM Act”) for promoting a prohibited MLM scheme, 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. If found guilty under Section 82 of the Securities Futures Act for not possessing the requisite Capital Markets Services Licence issued by MAS for carrying on a business in a regulated activity, 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 that it is unlawful to:
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Promote or participate in a multi-level marketing scheme or arrangement or a pyramid selling scheme or arrangement.[1]
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Carry out their business in any regulated activity without a Capital Markets Services Licence issued by MAS, unless otherwise exempted or excluded.
[1] The definition of pyramid selling scheme or arrangement (multi-level marketing scheme or arrangement) does not include schemes or arrangements that are excluded schemes and arrangements under the Multi-Level Marketing and Pyramid Selling (Excluded Schemes and Arrangements) Order.
SINGAPORE POLICE FORCE
08 January 2018 @ 8:40 PM