His toothy grin, just minutes after being charged in court, reflects the larger-than-life appearance that some people associate with him.
Far from shying away from the intense media attention, he strode at leisure to a waiting entourage of men in black suits and a convoy of Mercedes-Benzes and BMWs.
It seemed like a scene from a movie. Not for nothing do they call James Phang Wah, 49, ‘Lao Da’ (big brother, or chief, in Mandarin).
The fleet of cars were waiting to whisk Phang away as soon as he emerged from the Subordinate Court last Tuesday, when he was charged with criminal breach of trust relating to dealings at Sunshine Empire.
His charges include failing to maintain proper accounts, falsifying accounts, and two for possessing obscene films.
Despite the collapse of the Sunshine Empire, Phang, its founder and chief, still seemed to command the respect and loyalty of his core followers.
This was the man who only last year in a media interview declared himself a legend, saying: ‘I’m very good - better than Warren Buffett’.
He also once said that he buys companies like people buy tofu.
Phang, according to those who know him, is charismatic, projects confidence, and thinks and lives big. Click to see larger image
Courtroom spectators will be waiting to see how he presents himself when he deals with the 20 charges he faces during the trial.
Phang, who is married with four children, also faces charges for possession of uncensored and pornographic material.
What’s behind that big smile? In public, he is extravagant in behaviour and lifestyle. In private, however, he is said to be reserved.
One of his neighbours told Lianhe Wanbao that he did not appear to be a friendly person. She claimed that he would not exchange any greetings when they met.
It was his wife who was more sociable and often smiled whenever they met, said the neighbour.
Phang’s wife, Neo Kuon Huay, 46, and another director of the Empire Investment Group, Yong Wai Hong, 27, have also been charged in relation to the case.
Home is a luxurious three-storey landed property in Jurong West, where a shiny black Mercedes-Benz sits in the driveway.
Sunshine Empire, which was launched in 2003, had raked in $189 million from investors here.
It is alleged that Sunshine Empire sold packages which offered returns in the form of cash rebates.
The returns were allegedly drawn from the proceeds of packages bought by later Sunshine participants.The success of his company before its fall is a far cry from Phang’s humble beginnings. He grew up on a Lim Chu Kang vegetable farm and left school after O levels.
He then worked in a shipyard and as a construction worker to pay for his A Level classes which he attended at night.
He showed a talent for sales at 19 when he sold products door-to-door, ranging from stainless steel cooking utensils to health products.
Graduating with a degree in economics and statistics from the National University of Singapore, he joined the Chinese evening paper, Shin Min Daily News, where he worked as a feature writer from 1984 to 1990.
More than a decade later, he founded the Empire Group Alliance, an intricate network of diversified businesses from property to telecommunications.
Perception was everything
As empires go, perception was everything. The company’s office at Toa Payoh Hub was lavishly furnished with gold trimmings and lush carpeting. Its lobby was about the size of a basketball court.
The company’s vaunted business plans also seemed big - its property arm boasted various developments and projects in Malaysia of grand scale.
But perception was not always backed by reality. Checks by The New Paper in Oct 2007 with Malaysian authorities revealed that some projects, such as an underwater theme park touted on the Sunshine’s website did not exist.
Similarly, its claim of ‘a seamless wireless broadband’ built by its telecommunications arm in Taichung, Taiwan. Taiwanese authorities verified that they had no such projects with the company.
Phang remained unshaken despite doubts raised by the media.
When news broke in Oct 2007 that the Commercial Affairs Department (CAD) was investigating Sunshine Empire’s dealings, Phang did not seem the least worried. He even gave an interview to The Straits Times announcing the success of Sunshine.
In the interview, he claimed to control more than US$300 million ($439m) in assets. He said: ‘We acquire companies like you go to market buying beancurd.’
His right-hand man, who helmed the empire as president, Jackie Hoo Choon Cheat, 29, wrote to the CAD welcoming their investigation and made a statement that the group would be found ‘clear of suspicion’.
Hoo also reassured Sunshine’s followers in a memo on the company’s website. He said ‘it is a positive thing that the ST (Straits Times) did not call Sunshine Empire a scam, or say it is illegal’.
Hoo is facing 10 charges related to Sunshine’s dealings.
The confidence of both the founder and the president in the face of the CAD probe was effective in boosting the morale of members of Sunshine who had parked their money with the company based on the prospects of super returns.
A former member of Sunshine Empire who wanted to be known only as Pamela, said the company tended to recruit people who were in their late teens to early thirties to join as members and invest with Sunshine.
They in turn were trained to recruit more members.
Pamela, 21, a tertiary student, said there was also a group of middle-aged people but they were trained separately from the majority.
‘The managers of the Empire always dressed smartly in black suits and they all carried Montblanc pens and wallets,’ she said.Despite being only in their early twenties, some even drove luxury sedans like Mercedes-Benzes and BMWs
‘They would take us out for supper after the training sessions because they said it would foster bonding. That’s when we would see the cars they drove,’ she said.
She noted that most of the managers or trainers were undergrads.
‘They like to recruit other young people. I think youngsters tend to be easily impressed by material wealth and the idea that you can get rich quickly, so they can be very driven and aggressive in recruiting even more members,’ she observed.
Pamela who had previously invested $66,000 with Sunshine Empire and was later told to transfer her account to a new company called Em Max based in Hong Kong, despairs at the thought of not getting her money back.
‘I can only wait and see if there is any possibility to get back at least a part of my money,’ she said.
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The lavish lifestyle of ‘Lau Da’
Hedy Khoo, The New Paper
10 February 2009
His toothy grin, just minutes after being charged in court, reflects the larger-than-life appearance that some people associate with him.
Far from shying away from the intense media attention, he strode at leisure to a waiting entourage of men in black suits and a convoy of Mercedes-Benzes and BMWs.
It seemed like a scene from a movie. Not for nothing do they call James Phang Wah, 49, ‘Lao Da’ (big brother, or chief, in Mandarin).
The fleet of cars were waiting to whisk Phang away as soon as he emerged from the Subordinate Court last Tuesday, when he was charged with criminal breach of trust relating to dealings at Sunshine Empire.
His charges include failing to maintain proper accounts, falsifying accounts, and two for possessing obscene films.
Despite the collapse of the Sunshine Empire, Phang, its founder and chief, still seemed to command the respect and loyalty of his core followers.
This was the man who only last year in a media interview declared himself a legend, saying: ‘I’m very good - better than Warren Buffett’.
He also once said that he buys companies like people buy tofu.
Phang, according to those who know him, is charismatic, projects confidence, and thinks and lives big.
Click to see larger image
Courtroom spectators will be waiting to see how he presents himself when he deals with the 20 charges he faces during the trial.
Phang, who is married with four children, also faces charges for possession of uncensored and pornographic material.
What’s behind that big smile? In public, he is extravagant in behaviour and lifestyle. In private, however, he is said to be reserved.
One of his neighbours told Lianhe Wanbao that he did not appear to be a friendly person. She claimed that he would not exchange any greetings when they met.
It was his wife who was more sociable and often smiled whenever they met, said the neighbour.
Phang’s wife, Neo Kuon Huay, 46, and another director of the Empire Investment Group, Yong Wai Hong, 27, have also been charged in relation to the case.
Home is a luxurious three-storey landed property in Jurong West, where a shiny black Mercedes-Benz sits in the driveway.
Sunshine Empire, which was launched in 2003, had raked in $189 million from investors here.
It is alleged that Sunshine Empire sold packages which offered returns in the form of cash rebates.
The returns were allegedly drawn from the proceeds of packages bought by later Sunshine participants.The success of his company before its fall is a far cry from Phang’s humble beginnings. He grew up on a Lim Chu Kang vegetable farm and left school after O levels.
He then worked in a shipyard and as a construction worker to pay for his A Level classes which he attended at night.
He showed a talent for sales at 19 when he sold products door-to-door, ranging from stainless steel cooking utensils to health products.
Graduating with a degree in economics and statistics from the National University of Singapore, he joined the Chinese evening paper, Shin Min Daily News, where he worked as a feature writer from 1984 to 1990.
More than a decade later, he founded the Empire Group Alliance, an intricate network of diversified businesses from property to telecommunications.
Perception was everything
As empires go, perception was everything. The company’s office at Toa Payoh Hub was lavishly furnished with gold trimmings and lush carpeting. Its lobby was about the size of a basketball court.
The company’s vaunted business plans also seemed big - its property arm boasted various developments and projects in Malaysia of grand scale.
But perception was not always backed by reality. Checks by The New Paper in Oct 2007 with Malaysian authorities revealed that some projects, such as an underwater theme park touted on the Sunshine’s website did not exist.
Similarly, its claim of ‘a seamless wireless broadband’ built by its telecommunications arm in Taichung, Taiwan. Taiwanese authorities verified that they had no such projects with the company.
Phang remained unshaken despite doubts raised by the media.
When news broke in Oct 2007 that the Commercial Affairs Department (CAD) was investigating Sunshine Empire’s dealings, Phang did not seem the least worried. He even gave an interview to The Straits Times announcing the success of Sunshine.
In the interview, he claimed to control more than US$300 million ($439m) in assets. He said: ‘We acquire companies like you go to market buying beancurd.’
His right-hand man, who helmed the empire as president, Jackie Hoo Choon Cheat, 29, wrote to the CAD welcoming their investigation and made a statement that the group would be found ‘clear of suspicion’.
Hoo also reassured Sunshine’s followers in a memo on the company’s website. He said ‘it is a positive thing that the ST (Straits Times) did not call Sunshine Empire a scam, or say it is illegal’.
Hoo is facing 10 charges related to Sunshine’s dealings.
The confidence of both the founder and the president in the face of the CAD probe was effective in boosting the morale of members of Sunshine who had parked their money with the company based on the prospects of super returns.
A former member of Sunshine Empire who wanted to be known only as Pamela, said the company tended to recruit people who were in their late teens to early thirties to join as members and invest with Sunshine.
They in turn were trained to recruit more members.
Pamela, 21, a tertiary student, said there was also a group of middle-aged people but they were trained separately from the majority.
‘The managers of the Empire always dressed smartly in black suits and they all carried Montblanc pens and wallets,’ she said.Despite being only in their early twenties, some even drove luxury sedans like Mercedes-Benzes and BMWs
‘They would take us out for supper after the training sessions because they said it would foster bonding. That’s when we would see the cars they drove,’ she said.
She noted that most of the managers or trainers were undergrads.
‘They like to recruit other young people. I think youngsters tend to be easily impressed by material wealth and the idea that you can get rich quickly, so they can be very driven and aggressive in recruiting even more members,’ she observed.
Pamela who had previously invested $66,000 with Sunshine Empire and was later told to transfer her account to a new company called Em Max based in Hong Kong, despairs at the thought of not getting her money back.
‘I can only wait and see if there is any possibility to get back at least a part of my money,’ she said.
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