About six years ago, these investors had paid up to $3,800 each to become members of an Indonesian country club PT Magic Kingdom Island Resort Paradise.

Mr Phang's firm NOP (Number One Product) was the marketing agent for the club which was never built.

The resort was to have been developed on a 200-ha piece of land in Rempang, which is linked to Batam by bridge, boasting a hotel, chalets, a golf course and even a 1,000-sq-m shopping mall.

Some investors had paid the club membership fees via monthly instalments of $300.

The resort was set to open in July 2003 but the project was called off in May 2003.

It is believed that the investors never received any refund on their investments.

Mr Phang is adviser to Sunshine and founder of Empire Group Alliance, of which Sunshine is an associate.

Recently, Sunshine made headlines after it was placed on an investor alert list by authorities, both here and in Malaysia, as a result of concerns over its business practices.

In response to queries from The Straits Times, Mr Phang confirmed that NOP was marketing memberships of Magic Kingdom around 2001. He said NOP is now inactive.

Mr Phang said he knows many investors believe he is the 'dishonest businessman' behind the project. But he begged to differ.

Read the full report in Wednesday's edition of The Straits Times.