A COURT ruled yesterday that the three key players in the Sunshine Empire investment scheme have a case to answer after several days of testimony outlining their alleged multimillion-dollar scam.

The three - Sunshine Empire founder James Phang Wah, his wife Neo Kuon Huay, and former director Jackie Hoo Choon Cheat - are said to have pocketed millions from the scheme.

They told District Judge Jasvender Kaur yesterday that they intend to defend themselves when the hearing resumes on March 29.

They face a range of charges, including criminal breach of trust and failing to keep proper accounts, over the scheme that pulled in about $180 million.

The 2 1/2-week-long hearing started last October and resumed this week.

The case against the accused was completed yesterday, with Deputy Public Prosecutor Aedit Abdullah telling the court that about $118 million of the $180 million collected was spent on the rebates and incentives to push the purchase of more packages. But much of the rest went into the pockets of the trio.

It is alleged that between August 2006 and November 2007, Phang, 49, pocketed US$5 million (S$7 million) in consultancy fees and allowances.

Hoo, 29, is accused of collecting about $950,000 by abetting Phang in criminal breach of trust, while Neo, 46, is said to have falsified payment vouchers to receive nearly $1 million in commissions.

More than 10 people who invested in the scheme have testified that the firm hoodwinked them.

The court had earlier heard testimony from forensic accountant Luke Steadman, who described the scheme as 'unsustainable'.

Each customer of the multi-level marketing firm who bought a $12,000 product stood to receive $19,200 in rebates.

To afford such payouts, Sunshine Empire would have had to generate returns of 349 per cent a year, said Mr Steadman.

But it had no way of doing this except through the sale of even more lifestyle packages, he told the court.

The pyramid-selling scheme, which netted the company $180 million in just 15 months, convinced investors to part with cash in return for rebates. These could be used to buy products on the firm's website, ranging from bird's nest to cameras.

The three accused deny the charges and will argue that the scheme was profitable and sustainable.

They are also likely to contend that Sunshine failed only because the Commercial Affairs Department stepped in and ordered it to cease operations.

Their lawyer, Mr Subhas Anandan, told the court yesterday that he would call about 10 witnesses, including accountancy expert Wilfred Wu from Hong Kong, to show that Sunshine Empire's business operations were viable.

If convicted of cheating, Phang and Hoo could each be jailed for up to seven years and fined $15,000, while Neo faces jail for a similar period and a fine of up to $10,000 for falsifying documents.