On September 4th, the Ministry of Foreign Affairs and the Police Force of Singapore issued a joint statement. 52 Singaporeans were arrested and detained in Guangxi, China, allegedly involved in pyramid schemes and related crimes.
Singapore media reported that this is the largest number of Singaporeans arrested in a single incident abroad so far.
The statement indicates that the Ministry of Foreign Affairs and Trade of Singapore (MFA) was informed by Chinese authorities that 52 Singaporeans were arrested and detained in Guangxi, China. Previously, Chinese law enforcement agencies carried out an operation targeting individuals suspected of engaging in pyramid schemes and related illegal activities. Chinese authorities are still conducting investigations. The Singapore Police Force has contacted Chinese police to obtain more information. The MFA has been in contact with Chinese authorities through the Singapore Embassy in Beijing and the Consulate General of Singapore in Guangzhou.
The statement does not provide details about the specific circumstances of the case, including when these 52 people were arrested, their ages, and the gender ratio. Asian News Channel cited three sources saying that these individuals were detained in mid-July.
Singapore's Minister of Foreign Affairs and Second Minister of Home Affairs, Shen Ying, stated to the media this morning that the Singapore Embassy and the Consulate General in Guangzhou have visited all 52 detainees three times each to learn about their situations and provide consular assistance. The assistance includes conveying requests made by the detainees, passing information between them and their families, and helping with administrative matters. In Singapore, officials from the Ministry of Foreign Affairs have also been in contact with the relatives of the detainees. She herself has met with the families of most of the detainees.
Shen Ying emphasized that the Singapore government will not interfere with the judicial procedures and investigations of other countries. Just as our country also expects foreign governments to respect Singapore's laws and judicial procedures, the Singapore government will continue to pay close attention to this case.
She also reminded once again that Singaporeans should be cautious when considering participating in business or investment programs, whether the projects are overseas or local. Special caution should be taken regarding projects that involve recruiting participants, requiring upfront payments of large amounts of money, or promising unusually high returns.
On the afternoon of the 4th, Guo Jiakun, a spokesperson for the Chinese Ministry of Foreign Affairs, stated that China is investigating lawbreaking cases of foreign citizens in China in accordance with the law, and fully safeguarding the legitimate rights of the parties involved. For further information, it is recommended to consult the relevant Chinese authorities.
Asia News Channel (CNA) stated that the project involved in this case is related to the '1040 Sunshine Project'. This is a long-existing pyramid scheme, and Chinese authorities have repeatedly cracked down on it in the past.
Such organizations typically claim to the participants that the so-called projects are not ordinary private investments, but rather capital operations supported by the state, with government approval, or even as ‘secret pilots’. Participants must first invest a certain amount of money, with the most commonly mentioned amount being 69,800 yuan. After that, more members are recruited, and participants receive rebates based on their level of involvement. Organizers often claim that by continuously recruiting new members, the ultimate profit can reach 10.4 million yuan. The name ‘1040’ originates from this claim.
CNA reporter recently participated in such a gathering in the center of Singapore, acting as an undercover agent.
This two-hour event had approximately 10 participants. At the beginning, the topics of conversation were quite normal, mainly focusing on the participants' personal backgrounds, retirement plans, and hobbies. Some of them even met for the first time. When one participant mentioned his interest in investing in China, someone who was confirmed by CNA to be part of the project began to strongly promote the development potential of Guangxi, especially Nanning.
Their promotion is based on several claims, including: a large number of Singaporeans and Singaporean businesses are involved in the urban development of Nanning; the local government welcomes foreign investment; Nanning is developing rapidly; and this city has great potential for further growth in the future.
The current members of the project will exchange contact information with the guests, and suggest that they meet again in a ‘more appropriate occasion’ to gain a better understanding of the situation.
47-year-old Mr. Chen (Adrian Tan) was one of the people who went to Nanning. In 2018, he traveled there. He said that at the time he was in a difficult period during his career. During the four to five days' journey, he interspersed various dinners and meetings.
Earlier this year, Kim (a pseudonym) went to Nanning and said that at first, she thought she was just traveling with a friend.
Many respondents stated that most of their actual time was spent meeting with other Singaporeans who had already joined the project. These meetings sometimes took place in restaurants or cafes, and sometimes in private residences.
Jin recalled how he had said at a introduction meeting: "I was surprised to see so many Singaporeans there."
Benjamin (alias), when he went to Nanning in 2019, was told that the purpose of the visit was to explore opportunities for expanding his business into China. However, upon arriving there, he found that almost everyone he met were Singaporeans. This became the first sign that something was not right.
Benjamine said, “If you want me to expand the business into China, then you should first introduce me to local businessmen… not other Singaporeans.”
Most respondents said that their trips to Nanning always included at least two presentations, hosted by other Singaporeans, usually at private residences or offices.
Participants will be informed that there are different levels of membership, and each level requires a prepayment of a different amount of money.
Participants can pay approximately 30,000 or 50,000 New Thai dollars to join. Different levels mean that they can develop different numbers of “downlines”. Mr. Chen told CNA, “Your commission comes from the membership fees paid by your downlines. Essentially, you are transferring money from the lowest level up.” Although different respondents had varying opinions on the purpose of the funds claimed by the organizers, everyone agreed that whether they could gain profits depended on whether they could continuously recruit more people to join. Several respondents also said that they were required to open bank accounts in China in order to receive their commissions.
In 2016, Rachel (a pseudonym) went to Nanning and canceled her insurance, paying 45,000 New Taiwan Dollars. Later, when she introduced the project to a relative, this relative warned her that she had been deceived. After realizing this, Rachel requested a refund, and so far, she has received 20,000 New Taiwan Dollars in refunds. "Being able to get some of the money back makes me feel lucky. I really thought I was too naive at that time."
Mr. Chen ultimately did not invest any funds in the project, but after his trip to Nanning, he still decided to report the situation to the police.
Among the people interviewed by CNA, a total of 3 people reported to the police. In July this year, after a friend told him that more Singaporeans were being invited to Nanning, Mr. Chen decided to share his experiences in 2018 on LinkedIn.
After this post was published, many people took the initiative to contact him.
He said, “Many people came to me… Some of them had experiences that were even worse than mine.”
Ruiqiu then stated that she had also attempted to remind herself of people whom she met during her trip to Nanning and other potential investors who might be interested in this investment project.
She said, “I have called all my female friends... If someone asks you to go to Nanning, you must be vigilant.”
This entire experience is itself a very great lesson.
