A 52-year old man from Singapore has been found guilty of promoting the Multi-Level Marketing (MLM) scheme OneCoin, local news outlet Channel News Asia reported on 2 July.
According to the publication, the man named Fok Fook Seng was convicted and fined 100,000 Singapore dollars (around $72,000) on Wednesday, for promoting the OneCoin Ponzi scheme between January 2016 and June 2017. The Singapore Police Force first pressed charges against the man in April 2019, which made him the first person to be charged under the Multi-Level Marketing and Pyramid Selling (Prohibition) Act.
In order to get more buyers, the person in question used to advertise the Ponzi scheme at large-scale events, and also conduct online seminars on his Facebook page, “OneLife One World Team Singapore”, to promote OneCoin. Fok and his accomplices used an MLM scheme model, where they sold educational packages with free “promotional tokens”, which buyers could use for “mining” the OneCoin cryptocurrency.
In addition, the scheme had a referral program similar to pyramid schemes, where participants would receive commissions if people bought the package through their referral, and an additional commission if their referred participants brought in more people. Using this model, Fok and his team were able to sign up 1,180 people from Singapore and other countries in around one year of referring.
Though Fok has already been found guilty, the court proceedings for his partner as still ongoing. This is not the first time that people connected to OneCoin have been found guilty of conducting money laundering and fraud. Last year in October, OneCoin co-founder Konstantin Ignatov pleaded guilty to participation in the multi-billion dollar fraud. A month later, OneCoin’s lawyer, Mark Scott, was also found guilty, this time for laundering $400 million on behalf of Ruja Ignatova, the other co-founder of the Ponzi scheme.