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SINGAPORE: The director of two companies at the massive investment fraud accusation center was indicted in court on Monday (March 22) with two counts each of cheating and fraudulent trading.
Ng Yu Zhi, 33, ran Envy Asset Management (EAM) and Envy Global Trading (EGT), allegedly raising money from investors to buy nickel from Poseidon Nickel Limited and tricking investors into buying a portion of the accounts for collect from EGT’s nickel sale. through forward contracts with BNP Paribas.
In reality, Ng’s companies did not buy nickel and forward contracts did not exist, prosecutors say.
He is accused of misleading the fund manager Envysion Wealth Management and its CEO Shim Wai Han out of more than S $ 48.9 million between September 2020 and January of this year, and running the two companies “with the intent to defraud” , according to the charge sheets.
Ng’s companies currently owe investors at least S $ 1 billion, according to a court heard on Monday.
READ: Two companies investigated for alleged fraud on the nickel investment scheme
The Monetary Authority of Singapore (MAS) brought Ng companies to the attention of the Department of Trade Affairs (CAD) in November last year, police said in a press release.
Between October 2017 and February 2021, EAM and EGT are believed to have raised more than S $ 1 billion from investors to “fund nickel trading activities,” police said. Investors were promised variable returns, averaging 15 percent every three months.
Around S $ 700 million was paid to investors and S $ 300 million was transferred to Ng’s personal account, according to a court. Another S $ 200 million remains unaccounted for. The CAD has seized assets, including property and bank accounts, from Ng valued at S $ 100 million.
COMPANIES DO NOT REQUIRE ANY MORE LICENSE
EAM and EGT were not supposed to be licensed by MAS because the companies dealt with physical assets and invested funds for a certain type of investor, the authority said in a press release.
MAS had included the companies on the Investor Alert List in March last year after receiving comments that EAM had told clients that it was in the process of applying for a MAS license. No such request had been made, MAS said.
When MAS received more information about the transactions carried out by EAM and EGT, it conducted a more in-depth review and shared its findings with the CAD, triggering a police investigation. Ng was arrested on February 16 on suspicion of cheating.
“Even though EAM and EGT are not licensed by MAS, MAS is concerned about the scale of the alleged investment fraud scheme,” the authority said.
“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 said it is working closely with CAD to determine the number of individuals and businesses that may have suffered losses.
PROBABLY HIGHEST DEPOSIT AMOUNT TAXED SINCE E-TAGGING WAS INTRODUCED
Ng is now out on bail, set at S $ 1.5 million. The court also ordered Ng to wear an electronic tag, comply with a curfew between 10 p.m. and 6 a.m., and report to the investigating officer when prompted.
This amount of bail with electronic monitoring is likely to be the highest imposed so far after electronic monitoring was introduced as a condition for bail in the Code of Criminal Procedure.
Prosecutors had asked to be offered a bail of S $ 3 million in cash, pointing to Ng’s access to assets abroad and the fact that his family is also abroad. In addition to a company registered in the British Virgin Islands with a bank account in London, Ng has significant overseas investments in Hong Kong, London and Switzerland.
Ng’s partner has returned to China with their son, the court heard. Prosecutors said he gave his partner expensive gifts and several cars in Singapore.
Ng will appear in court on May 17, where the prosecution is likely to press further charges, the court heard.
Investigations and recovery efforts are ongoing, police said.
If convicted of cheating, Ng faces up to 10 years in jail per charge and a fine. For each charge of fraudulent trading, you could be jailed for up to seven years and / or fined up to $ 15,000.
