Two Malaysians Sentenced for Running S$23M Pyramid Scheme in Singapore

Two Malaysian men have been sentenced in Singapore for orchestrating a S$23 million multi-level marketing (MLM) scheme that defrauded approximately 4,500 investors, including over 2,400 in Singapore. The scheme, which operated between 2014 and 2015, falsely promised returns from foreign exchange trading and resulted in combined losses exceeding US$13.7 million, with more than US$10 million remaining unrecovered.

The scheme was described by District Judge Soh Tze Bian as one of the most serious cases of fraudulent trading in the country. Leong Koon Wah, aged 51, was identified as the mastermind behind the operation. As the director of Singliworld, Leong promoted the forex trading scheme known as Singliforex, alongside two unlicensed brokerages, Triumph Global (Asia) and Union Markets, which he also ran.

Leong was heavily involved in the design and promotion of the scheme. After an 88-day trial, he pleaded guilty to multiple charges, including operating unlicensed forex trading businesses, promoting a pyramid scheme, and engaging in fraudulent trading. He received a 10-year and six-month prison sentence, along with a penalty of S$3.66 million. He indicated his inability to pay the penalty, which could extend his sentence by an additional 18 months.

Ng Kuan Chuan, aged 38, was a director of Triumph Global and a manager at Union Markets. He played a key role in sustaining the illusion of legitimate forex trading while facilitating the misappropriation of investors funds. Ng was convicted on charges of fraudulent trading and operating unlicensed brokerages. He received a seven-year and six-month prison sentence and a fine of S$300,000. He has since appealed his conviction and sentence.

The Singliforex scheme was marketed as a platform where professional traders would manage forex investments on behalf of clients, promising average monthly returns of 7.54% and allowing investors to retain 70% of the profits. However, no trades were ever conducted. Instead, fake trading statements were issued, and withdrawal requests were fulfilled using funds from other investors.

Judge Soh revealed that the MLM structure reached at least 55 levels of downlines, which amplified its destructive potential. Leong positioned himself and his wife at the top of the pyramid, reaping US$6.5 million in rebates. Significant funds were transferred to their personal accounts, including US$2.7 million to Leong‘s Hong Kong account and over S$500,000 to his wife’s Singapore account.

Ng also benefited financially, with gains estimated at a minimum of US$300,000. Evidence during the trial suggested that this amount could be higher. Additionally, a questionable transfer of nearly US$530,000 was made to a bank account linked to the African Development Funding Group without investors' consent.

Judge Soh highlighted the scheme‘s high level of sophistication and premeditation. This included the use of technical jargon, a complex corporate structure involving shell companies in New Zealand, and overseas bank accounts to mislead investors. He noted that Leong’s extensive experience in MLM schemes demonstrated a calculated awareness of the schemes harmful and illegal nature.

Both men exhibited dishonesty and lack of remorse during the trial. They attempted to shift blame and downplay their roles, which the judge cited as aggravating factors justifying harsher sentences.

Leongs sentence was deferred until January 31, following his request to celebrate Chinese New Year with his family. He remains on bail for S$300,000 and must report to authorities thrice a week. Ng, who is appealing his conviction, was granted a stay of execution. His bail was increased to S$300,000, and he must report biweekly to investigators.