33-year-old man charged with cheating in nickel investment fraud involving S$1 billion

SINGAPORE: The director of two corporations on the centre of huge funding fraud allegations was charged in court docket on Monday (Mar 22) with two counts every of dishonest and fraudulent buying and selling.

Ng Yu Zhi, 33, ran Envy Asset Administration (EAM) and Envy World Buying and selling (EGT), allegedly elevating cash from traders to buy nickel from Poseidon Nickel Restricted and tricking the traders to purchase in to a portion of receivables from EGT’s sale of nickel by means of ahead contracts with BNP Paribas.

In actuality, Ng’s corporations didn't buy any nickel and the ahead contracts didn't exist, prosecutors say.  

He's accused of dishonest fund supervisor Envysion Wealth Administration and its CEO Shim Wai Han of greater than S$48.9 million between September 2020 and January this 12 months, and working the 2 corporations “with intent to defraud”, cost sheets state.  

Ng’s corporations at present owe traders no less than S$1 billion, a court docket heard on Monday.

READ: Two corporations probed for alleged fraud over nickel funding scheme

The Financial Authority of Singapore (MAS) introduced Ng’s corporations to the eye of the Industrial Affairs Division (CAD) in November final 12 months, the police stated in a information launch.

Between October 2017 and February 2021, EAM and EGT are believed to have raised greater than S$1 billion from traders to “finance nickel trading activities”, the police stated. Traders had been promised various returns, averaging 15 per cent each three months.

About S$700 million was paid to traders and S$300 million was transferred to Ng’s private account, a court docket heard. One other S$200 million stays unaccounted for. The CAD has seized belongings, together with property and financial institution accounts, from Ng valued at S$100 million.

COMPANIES DID NOT REQUIRE LICENSE FROM MAS

EAM and EGT weren't required to be licensed by MAS as a result of the businesses handled bodily belongings and invested funds for a sure kind of investor, the authority stated in a media launch.

MAS had positioned the businesses on the Investor Alert Record in March final 12 months after it acquired suggestions that EAM had instructed prospects that it was within the strategy of making use of for a license from MAS. No such utility had been made, MAS stated.

When MAS acquired additional data on transactions carried out by EAM and EGT, it performed a deeper assessment and shared its findings with the CAD, triggering a police investigation. Ng was arrested on Feb 16 on suspicion of dishonest.

“Notwithstanding that EAM and EGT are not licensed by MAS, MAS is concerned with the scale of the alleged investment fraud scheme,” the authority stated.

“MAS, CAD and MoneySense have repeatedly advised investors to be aware of the risks of dealing with entities that are not regulated by MAS.”

MAS stated it's working carefully with the CAD to determine the variety of people and firms that will have suffered losses.

BAIL AMOUNT LIKELY HIGHEST IMPOSED SINCE E-TAGGING INTRODUCED

Ng is now out on bail, set at S$1.5 million. The court docket additionally ordered Ng to put on an digital tag, adjust to a curfew between 10pm and 6am and to report back to the investigating officer when directed.

This bail quantity with digital monitoring is more likely to be the best imposed to date after digital monitoring was launched as a situation of bail within the Felony Process Code.

Prosecutors had requested for bail to provided at S$3 million in money, pointing to Ng’s entry to belongings abroad and the truth that his household can also be abroad. Along with an organization registered within the British Virgin Islands with a London checking account, Ng has vital investments abroad in Hong Kong, London and Switzerland.

Ng’s associate has returned to China with their baby, the court docket heard. Prosecutors stated he gave his associate costly items and several other automobiles in Singapore.

Ng will subsequent seem in court docket on Could 17, the place additional fees could doubtless be tendered by the prosecution, the court docket heard.

Investigations and restoration efforts are ongoing, stated the police.

If convicted of dishonest, Ng faces as much as 10 years’ jail per cost and a superb. For every cost of fraudulent buying and selling, he might be jailed for as much as seven years and/or fined as much as $15,000.