Vending machine dreams turn into $200,000 nightmare
The promise of easy earnings through vending machine rentals has turned into a bitter experience for a group of investors, who claimed they were scammed out of more than $200,000 by a company called CloudRetail.
One of the complainants, 52-year-old Wang Meiling, was enticed by an advertisement and signed a contract with CloudRetail last December. She believed she was investing in a scheme where the company would help her set up a company in Hong Kong, secure government grants for three vending machines, and then rent them out for profit.
“I made a $3,110 downpayment, and paid the remaining amount in six instalments of $1,315 each. I've made four payments so far," Ms Wang told Shin Min Daily News.
However, alarm bells started ringing when CloudRetail repeatedly delayed her grant application. By April, the company had ghosted her.
Ms Wang soon discovered she wasn’t alone.
"I went to the office on May 28 and realised it had closed down. I found other victims on social media and joined a WhatsApp group that has more than 22 people,” she shared. “We lost over $200,000 in total.”
Driven by frustration, Ms Wang scrawled the word "scammer" on CloudRetail’s office door.
“I warned the company that I did not get my money back, I would take further action,” she declared.
Another complainant, a 37-year-old woman surnamed Goh, revealed she lost $9,830. After experiencing similar delays and broken promises from CloudRetail, Ms Goh attempted to terminate her contract but was told she would receive a partial refund of $7,000.
When she threatened to take the matter to the Small Claims Tribunals, the company offered to transfer her contract to another unspecified party without clarifying the compensation she would receive.
Ms Goh told AsiaOne that the matter had not been resolved.
Adding to the growing list of allegations, a former CloudRetail employee claimed in the WhatsApp group that the company had defaulted on his CPF contributions since January. He discovered this only after he resigned. Another employee alleged that CloudRetail recently dismissed its local employees.
When Shin Min Daily News visited CloudRetail’s office at 111 Somerset, the unit was found sealed off by the building management, with a notice stating it had been seized. A lawyer’s letter, believed to be from the affected investors, lay discarded on the floor.
CloudRetail is listed as a live company on the Accounting and Corporate Regulatory Authority records, and it reportedly held an event in Malaysia recently to attract investors.
The police have confirmed that a report has been filed against CloudRetail and investigations are ongoing.
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