Four people operating a pyramid investment scheme that promised clients lucrative returns received suspended jail sentences yesterday.
Wai Ping-luen, 34, Lam Kwok-hing, 39, Liu Chak-wing, 28, and Ng Lai-see, 36, pleaded guilty at Eastern Court to one count of promoting a pyramid selling scheme. They had also been jointly charged with conspiracy to defraud, but the prosecution dropped the second charge yesterday.
The four set up an investment company called 2.4 Million Inc Ltd in November 1998, promoting a pyramid scheme which they said promised clients profits of $2.4 million from an initial outlay of $240, the court heard.
Magistrate Colin Mackintosh handed down four-month prison sentences, suspended for two years, to Wai, Lam and Liu, the directors of the company. They were also fined $30,000 each. Ng received a two-month suspended jail sentence - also suspended for two years - and was fined $10,000.
The magistrate heard that for a $65 joining fee, participants would receive a plastic watch and a receipt bearing seven bank numbers, the court heard.
After depositing $25 into each account, participants would receive five cards bearing seven bank account numbers, with the last being their own account number.