Company director jailed 11 years for misappropriating more than S$5 million from sale of gold bars
File photo of gold bars. (Photo: iStock)
04 Mar 2022
SINGAPORE: A company director was on Friday (Mar 4) jailed 11 years for misappropriating more than S$5 million and cheating more than S$666,000 from multiple victims who ordered gold bars.
Nguyen Thi Thu Lan, 51, was the director of Hans Global and the “directing mind and will” of the company’s gold business, which involved supplying 1kg gold bars, stated court documents.
She was sentenced after pleading guilty to four counts of criminal breach of trust and one count of cheating and dishonestly inducing a delivery of property. Nine other charges were taken into consideration.
The Vietnamese national was uncooperative with police, and has not divulged the whereabouts of the gold bars and misappropriated money, according to the prosecution.
The court heard that Nguyen’s offences started in August 2018. YNK, a company dealing in gold, agreed to purchase 50 gold bars from her and transferred about S$2.5 million to Hans Global’s bank account for the purchase on Aug 30.
That same day, Nguyen dishonestly converted about S$960,000 of YNK’s payment to her own use. She drew on this sum to issue a cheque for S$980,000 to a man named Visvanathan Govindasamy.
Between September and December that year, she also used money paid by YNK for later and separate orders to fulfil the shortfall in gold bars that arose out of her misappropriation of the first payment.
In this way, she prevented YNK from discovering its payment had been misappropriated. The company received a refund of only S$7,000 in January 2019.
She committed similar offences against Singapore Island Resources. Around Sep 5, 2018, the company agreed to buy 53 gold bars from Nguyen and transferred more than S$2.6 million over the following days.
She used this money to purchase 50 gold bars, but these were never delivered to Singapore Island Resources.
When the company questioned her, Nguyen gave excuses, claiming that there was a delay as she needed to check each gold bar individually to ensure they were in good condition or that her supplier refused to release the gold bars as a minimum order quantity had not been met.
Singapore Island Resources was refunded only S$10,000 in January 2019.
NEW COMPANY, OLD RUSE
In August 2018, Nguyen ceased the gold business due to the disapproval of her husband, who is co-director of Hans Global. She incorporated a new company, SJC Joint Venture, to carry out gold trading instead.
Nguyen’s 26-year-old stepson served as the sole director of SJC Joint Venture, but he took instructions from her and she ran the day-to-day operations of the company.
She ran a similar ruse in this new company, misappropriating more than S$1.2 million from four victims who bought gold bars from her.
Among them was Singapore Island Resources, which in December 2018 again paid almost S$320,000 for six gold bars that it never received.
Nguyen used S$220,000 from the payment to buy three gold bars, but they were never delivered to Singapore Island Resources.
When chased by them, she gave more excuses, such as being busy and the supplier’s vault only opening on certain days. The company did not receive any refunds for this purchase.
Another victim was ORO Trading, which paid more than S$530,000 for 10 gold bars in December 2018.
Nguyen bought nine gold bars with this money, but they were never delivered to ORO Trading. The company received only S$10,000 in refunds in January 2019.
When asked about the delay, she again gave excuses, claiming that she was wrongly supplied with many “small 1gr bars” of gold.
FORGED CERTIFICATES
Nguyen also cheated the director of JAJ, a company dealing with gold, and the director’s husband of more than S$666,000.
In January 2019, Nguyen’s acquaintance conveyed to her a request from a manager of JAJ indicating that the company wanted to buy gold bars from SJC but wanted assurance they would be able to deliver the gold.
Over WhatsApp, she replied with images that purported to be a “World Renowned Mints and Refineries Certificate for Agent Distributor” and an “ABC Refinery Certificate of Ownership” for ownership of 20,000 gold bars.
These certificates were forgeries created by Nguyen.
Relying on the certificate of ownership, JAJ paid S$666,000 for 12 gold bars in January 2019. At Nguyen’s instruction, the money was deposited into a bank account belonging to another gold supplier. The deposit was reflected in Nguyen’s personal account with the supplier.
By then, Nguyen already owed more than S$4.8 million worth of gold bars to various customers and was being hounded by them.
She used the money deposited by JAJ to buy 11 gold bars from the gold supplier, which she distributed to Singapore Island Resources, YNK and ORO Trading.
She also attempted to mask her misappropriation of JAJ’s payment by writing the company cheques for the sum, which were dishonoured for lack of funds, and saying her company could not obtain registration for the gold bars.
BLAMED IT ON HER STEPSON
Nguyen was arrested on May 22, 2019.
She blamed her stepson for the misappropriations, making false claims such as that he threatened to kill Nguyen and her family in order to coerce her into handing over JAJ’s gold bars to other parties.
In sentencing, Deputy Public Prosecutor Gerald Tan noted that Nguyen was a “persistent and sustained offender” who claimed eight victims in 17 months and took a “startlingly large” sum of money from them.
The offences were premeditated, as demonstrated by the forgery of certificates required to cheat the director of JAJ, he said.
Nguyen also took several steps to evade detection, such as using payments for later orders to fulfil earlier shortfalls, and fabricating falsehoods, said Mr Tan.
In mitigation, defence lawyer David Marc Lee said Nguyen never intended to misappropriate the money but tried to fulfil every order possible until her arrest, and that it was “a case of terrible mismanagement” on her part.
The prosecution responded by saying that the victims suffered “staggering losses”, and questioned the extent to which Nguyen did try to fulfil the gold bar orders.
In sentencing, District Judge Ong Hian Sun said a deterrent sentence was necessary to send a message to the accused and other like-minded offenders.