Three arrested for promoting illegal MLM scheme

Three arrested for promoting illegal MLM scheme

handcuffs file photo
A man in handcuffs. (File photo: Reuters)

SINGAPORE: Two men and a woman were arrested on Monday (Jan 8) for promoting a multi-level marketing (MLM) scheme that's prohibited, said the police in a news release. 

The suspects, aged between 44 and 61, also did not have the required Capital Markets Services Licence issued by the Monetary Authority of Singapore in order to carry out business in a regulated activity. 

The licence regulates activities such as fund management, trading in futures contracts, securities financing and leveraged foreign exchange trading.

According to the police, the MLM scheme was offered by a company based outside the country. Between 2013 and 2015, investors in Singapore were promised monthly returns of about 6 to 8 per cent, purportedly derived from the company's trades in leveraged foreign exchange. 

Investors in the scheme would receive commissions for recruiting new investors, as well as from the recruitment efforts of those new investors. 

The suspects will be charged in court on Tuesday. 

If found guilty of promoting a prohibited MLM scheme, they could be fined up to S$200,000 and jailed up to five years. For not possessing the capital markets services licence as required, they could be fined up to S$150,000 and jailed up to three years. 

Source: CNA/ng