A group of investors in Singapore, many of whom are elderly retirees, have found themselves entangled in a gemstone investment scheme that they now believe mirrors the structure of a multi-level marketing programme.
Despite their attempts to recover their funds, these investors have been met with silence and frustration for years.
The investment involved amber gemstones, with participants awarded points that could be exchanged for cryptocurrency tokens, promising lucrative returns.
However, the profits never materialised.
On August 23, tensions boiled over when about 10 investors gathered at the Ubi Techpark office in Singapore to demand answers.
The meeting escalated into shouting and table-thumping, forcing the police to intervene and restore order. Investigations into the complaints are currently ongoing.
Among the investors are many retirees, including Ms. Shonna Seow, a 42-year-old business owner, who showed up with her parents in their 80s.
Her parents invested $35,000 each in 2017 with a company called Global GC.
Speaking to The Straits Times, her mother expressed their dismay, saying in Mandarin:
“We didn’t earn any profits, not even one cent. We only got a few hundred dollars from introducing new members. They said those were profits, but it was actually only commission.”
Ms. Seow's elderly parents were told to pay an additional amount to have a chance at recovering their $70,000 investment.
Ms. Seow shared her frustration, explaining that her parents had used part of the proceeds from the sale of their three-room flat for the investment, intending to secure their retirement,
“They wanted to keep the money for their retirement. But they were swayed by their friend’s words to invest.”
When they tried to withdraw their funds, they were told they had to pay a sum of money.
Ms. Seow also pointed out the complexity of the cryptocurrency aspect, noting,
“These old people don’t even know how to use computers, how do you expect them to understand cryptocurrency?”
Retiree Dennis Tan, 56, also fell victim to the scheme. He invested over US$20,000 (S$25,800) in 2015 with USFIA Singapore.
Tan explained that the company offered a 10% commission for every new member an investor brought in, but the promised profits never came through.
Like others, he has filed a police report in hopes of getting his money back.
Both Global GC and USFIA Singapore are listed on the Monetary Authority of Singapore’s (MAS) investor alert list, warning the public about dealing with these entities.
Checks revealed that USFIA Singapore was registered in 2014 and struck off in 2020.
Its director, Mr. Wong Yet Loong, who is also known as Lionel Wong, registered Global GC in 2015, and this firm was struck off in 2023.
The Ubi Techpark office, where investors congregated in frustration, is currently registered under two companies — Amtop Holding and Universal Mall.
These entities were established in 2018 and 2017, respectively.
Amtop Holding operates as a holding company, while Universal Mall is involved in software development and wholesale trade.
Mr. Wong, the figure at the center of investor complaints, was at the Ubi Techpark office during the August 23 confrontation.
Mr. Wong Yet Loong (in blue shirt and a mask), also known as Lionel Wong, addressed investors at an office located in Ubi Techpark on August 23.
Despite his involvement, business records show that Wong is not officially listed as an appointment holder of Amtop Holding or Universal Mall.
Instead, he shares a residential address with Ms. Lim Ai Lan, director of Universal Mall, and Ms. Wong Ji Hui Joyvina, director of Amtop Holding.
When questioned, Wong and his staff claimed the investors' funds were handled by MaxiTrading Invest OU, an Estonian-registered company.
However, this company was dissolved as of September 15, 2024, leaving investors in deeper uncertainty.
The web of connections doesn’t end in Singapore.
USFIA Singapore has ties to USFIA Inc, a Los Angeles-based company led by Steve Chen, a US citizen.
Steve Chen
In 2015, the US Securities and Exchange Commission (SEC) labelled USFIA Inc a pyramid scheme, accusing Chen of making false promises and misleading investors.
He claimed his company owned amber mines in the Dominican Republic and Argentina, all of which turned out to be lies.
Chen was sentenced to 10 years in prison in January 2021 after defrauding over 70,000 investors globally, raising about US$197 million.
A significant portion of these funds were used to support his extravagant lifestyle. Investigators found financial links between USFIA Singapore and Chen’s operations in the US.
Despite these connections, Mr. Wong has continually distanced himself from USFIA Inc, stating on August 23 that the situation in the US had “a lot of problems” and there were things that “could not be done” in Singapore.
He offered no further explanation.
Investors’ frustrations are further compounded by the legal complexities of the situation.
Mr. Daniel Soo, a commercial lawyer specialising in insolvency and restructuring, explained that if investors were misled into believing they would make a profit, they might have grounds for a civil claim for fraud.
He also pointed out that even though the companies involved have been struck off, directors could still be held personally liable under certain conditions.
Silvester Legal’s managing director, Mr. Walter Silvester, highlighted the importance of written documentation in such cases.
He advised that investors should always ask company directors to provide written evidence of the promises made about potential profits.
Without such documentation, it can be challenging to prove fraud. He also noted the fine line between fraud and a failed business venture, saying,
“It could very well be that (the director) actually had this whole idea and genuinely wanted to get this amber and (cryptocurrency) thing going, and it just didn’t work out.”
For now, the fate of these investors remains uncertain.
Some continue to hope for legal recourse, while others, like Ms. Seow’s parents and Dennis Tan, have little faith they will ever recover their funds.
Meanwhile, MAS has reiterated its warning to the public to thoroughly vet any financial products or services before making an investment, particularly those offered by unregulated entities.
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