I think this says so much about our youths today ...
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Undergrad may have lost $66,000 to MLM scam
SHE put $66,000 of her family's money into what she thought would give her quick and lucrative returns.
But a year on, the 20-year-old undergraduate could end up losing most of it because she has no idea what has happened to the controversial company in which she had invested - Sunshine Empire.
A check by The New Paper found that the company, which used to occupy a seventh-storey unit at the HDB Hub in Toa Payoh, is no longer there.
In its place is another company called Niu Lifestyle, which was registered on 20 Mar this year.
However, the corporate websites of Sunshine Empire, which is under investigation by the authorities, are still online, although details of its supposed property ventures have since been taken down.
The undergraduate, who wanted to be known only as Pamela, does not have the faintest clue how to recover the $66,000 she put into the multi-level marketing company.
Lured by the promise of cash rebates of up to $1,000 a month, Pamela bought a total of six packages called Gold Prime under the Sunshine Empire product line.
She paid $11,000 for each package, using money she borrowed from her parents.
She said: 'I don't know if I will ever see the money again. I was naive and foolish.
'I thought that was a smart way to earn money.'
She said her father was hospitalised some time in the middle of last year and she was in need of money. 'My friend told me about Sunshine Empire, and how I should make my money work for me,' she recalled, and started buying through her friend.
'At first, I thought it was too good to be true, but for the first two months, I got cash rebates of $4,000,' she said.
Convinced that the scheme worked, she borrowed another $44,000 from her parents to buy more packages.
She even persuaded two more of her friends to buy packages with her, as by selling the packages, she could earn 'bonus points', which could supposedly be converted into cash.
'I really thought it was easy money, and it wasn't wrong because I wasn't prostituting myself or cheating people.
'We went for motivational talks at the company, which sold us not only the packages promising good rebates, but also the idea of being able to change our lives and live our dreams.'
But in October and November last year, media reports were published about the Sunshine Empire's unsupported claims of grandiose investments in water theme parks in Malaysia and a wireless broadband project in Taiwan.
'My parents were worried and started to warn me and told me to take my money out, but I was stubborn and refused to heed their advice,' she said, her voice tinged with regret.
'My friends in Sunshine Empire said that any media publicity is good publicity and it only showed that our company was famous. I believed them.'
Only in November, when it was reported that the company was under investigation by the Commercial Affairs Department (CAD), did Pamela start to panic.
She called her 'upline' (the person who recruited her) asking to withdraw her cash, but was told that all accounts were frozen and there was no cash available.
Hounded by friends
Then, she was hounded by her two friends whom she had recruited.
'I feel very bad that I got them into the same situation as myself,' she said.
Then in March, she was told by her 'upline' that a new company called Niu Lifestyle had been set up at the former office of Sunshine Empire.
'I asked what was this company about, and I was told it was fengshui-related, but to find out more, I had to meet her there at the 'office',' she said.
'If it is a totally different company, why did my Sunshine Empire's upline tell me to meet at the same office, even when it is called Niu Lifestyle now?' she asked.
'I was sceptical by then, and it seemed that it was just a change in name.
'When I asked about Sunshine Empire, I was only told my money was stuck, but I could transfer my account to another new company called Em Max.'
Her 'upline' told her Em Max was a new start-up in Hong Kong.
'By then, I didn't believe anything I was told anymore. I was furious but I was desperate. So I made the account transfer. I don't think I will see my money again, but I am just trying anyway,' she said.
'I feel very stupid, and I felt I was brainwashed. The money I borrowed from my parents was hard-earned, and I feel guilty and that I let them down.
'My relationship with my parents have become strained because of this.
'There is no such thing as easy money,' she said ruefully.
When approached, the Monetary Association of Singapore declined to comment. It had put Sunshine Empire on its investor alert list on its website last year.
When contacted, the police said Sunshine Empire was still under investigation.
The Consumers Association of Singapore's executive director, Mr Seah Seng Choon, had earlier cautioned participants against transferring their money to Hong Kong, as it would put their investment outside Singapore's jurisdiction.
I suppose I should feel sorry for her ... but I think it says so much about the thinking of our youths today .....
everyone's looking for that one get rich quick scheme that'll let them earn millions and retire before 30 .... do they honestly think that money can simply drop like manna from heaven onto their laps without the hardwork ? .... and she's an undergraduate somemore ..... shouldn't she be expected to know better ? ..... or it's something our text-book crunching education system failed to prepared the young for ? .... book smart but street-stupid ? .....
something is wrong with many of the young of today I think .... they all want to wear shirt and ties, strut around looking important, and sit behind an aircon room all day ? ....
no wonder we're being shafted by foreign "talents" over and over .....
I do feel very sorry for her parents and the friends she's recruited though ...... $66000 !!! ... what was she thinking ? ..... if money can be made that easily, there'll be no poor people in Singapore by now ....
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Some people will never learn that 'If it sounds too good to be true, it's too good to be true."
Than again, sometimes greed clouds your better judgement... kinda like those Nigerian scams
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i rather throw 66K into my friend's farm
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It is really too good to be true....
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i feel for her parents. they dont deserve such an imbecile for a daughter
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Originally posted by thehappybunny:
i feel for her parents. they dont deserve such an imbecile for a daughter
It was a honest mistake.
Let's move on.
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Lessons to be learnt:
1. If it's too good to be true, then chances are that it is. If it smells fishy, then it probably isn't chicken.
2. Before you invest any money... make sure you know what you're investing in. If it has anything to do with magnetic bracelets or $2000 water filters or what not, stay well away.
3. Do some homework into the company that you're putting your money into. If it's on the MAS Investor Alert list (which SE is on), stay well away!
4. If you want to go into investments.... only use your own money. At least you only burn your own money and not other peoples' money.
In the first place..... no one really knows what the heck Sunshine Empire is doing to earn money, to begin with. I keep asking that question in the thread in the MLM forum, and all I get are long convoluted tangents and siam-ing.
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this would be a hard lesson to recover from ..... most people can't just write off $66000 just like that, especially not at this time ....
but of course .... there'll always be another batch of suckers coming up ..... you know what they say ... a fool and his(her !) money are soon parted .....
but seriously, I suppose greed was a big factor ... but are our youths generally street-wise enough to know a scam when they see one ? ....
haiz .... poor parents ... poor friends (but only just, cos they were suckers too)
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one word
STUPID -
Originally posted by FireIce:
one word
STUPIDstupid is investing the first 11k..farking stupid is putting more into it..
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Free things still the best
Things like ExamWorld are free for students
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parent's money obviously.
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it's generally understood but greed gets the better off man
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not the first and certainly won't be the last of such scams
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we are so smart academically...
when it comes to stuff outside the textbooks, we just cant think A1..
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kum lan.
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They should only allow MLM set ups after serious scrutiny... Look at the number of ppl cheated and the profits these assholes are making...
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Haiz...youth these days have low financial intelligence.
I think the garmen should advocate compulsory O levels accounting subject in secondary school.
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She said her father was hospitalised some time in the middle of last year and she was in need of money.
in need of $$, she still throw 66k to "invest"?! >.<
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Originally posted by Evangel:
Haiz...youth these days have low financial intelligence.
I think the garmen should advocate compulsory O levels accounting subject in secondary school.
accounting =X= financial intelligence...u simply can't teach common sense
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Originally posted by tare:
accounting =X= financial intelligence...u simply can't teach common sense
Very good point tare
But at least they will know what is income and expense, assets and liabilities.
Before investing, they will try to probe into the company's finances and not invest blindly.
Oh well...
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it's not about accounting, it's not about whatever..
where on this planet, apart from being a bloody Mini-star of the MIW, got such good kang-tau one?
throw money inside, then got returns of $1,000 per month?
what? $11,000 will get you $1,000 a month?
returns so good one? first year is 9.1% returns, and subsequent years is free $12,000 per year?
smells worse than a week-old dead rat... and so many people didn't even realise it??
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But thats how they sucker people la. Like those nigeria scam or what nots ones cellphone what u win what prize. Its all about someone falling for the easy money. Greed. The modus operandi are all the same. There will always be people to sucker off, the question is whether you are gonna be the one to give them that satisfaction or not.
Some company u invest in, it says buying stocks or investing in what mega projects, they are actually arms dealers and smugglers using the money to buy weapons sell off and return u some money to make u think its legit. I know of someone who does that.
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Originally posted by GHoST_18:
we are so smart academically...
when it comes to stuff outside the textbooks, we just cant think A1..
Many students nowadays actually want maximal results with minimal effort...
They are getting very lazy.... and many indeed believe that they can earn big bucks without studying because so many pple has done so... => a tibit I heard from a current sec sch teacher