SG is financial loss/fraud/scam hub. Huat ah!

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Stop Scams Podcast: How an American business owner lost $275k in a cryptocurrency scam​

(From left) ST crime correspondent David Sun, Global Anti Scam Organization's COO Brian Bruce (joining virtually) , ST reporter Jessie Lim and deputy news editor Andre Yeo. ST PHOTO: SOH YU QIANG

Jessie Lim


NOV 18, 2022

SINGAPORE – In September 2021, Mr Brian Bruce received an invitation from a man to connect on online professional network LinkedIn, which eventually led to him losing US$200,000 (S$275,000) in a cryptocurrency scam.
The 46-year-old American business owner accepted the invitation, as the man who contacted him claimed he worked for a Fortune 500 company and that they had mutual friends.
Mr Bruce, who lives in Chicago, said: “He looked very legitimate, started talking business with me, knew the company I work at. He had a friend who went to the same university as me years ago, and so we really connected that way.”
After chatting with him for two weeks, the man introduced Mr Bruce to cryptocurrency trading platform Zebpayex.vip to trade Tether, a cryptocurrency stablecoin pegged to the US dollar.
He even created fake financial charts to show Mr Bruce his investments had a 15 per cent return.
Convinced the platform was legitimate, Mr Bruce gradually increased his investment to $200,000 over two weeks.
When he tried to withdraw his earnings but was unable to do so, he was told he had to pay a 33 per cent tax on his investment sum.

Mr Bruce said: “I (realised) I pay taxes to my government and not to a crypto investment platform. That’s when I found out it was a scam.”
While trying to find online resources for scam victims, he discovered the Global Anti-Scam Organisation (Gaso), a volunteer-run group that supports victims of online scams.
He began volunteering with Gaso as he wanted to prevent others from falling prey to such scams.

Mr Bruce, who is now Gaso’s chief of operations, spoke to The Straits Times on the eighth episode of the Stop Scams podcast, which will be broadcast on Friday.
The Stop Scams podcast is a series by ST to raise greater public awareness of the modern scourge of scams.
In Singapore, more than $1 billion has been lost by scam victims since 2016.
During the episode, Mr Bruce warned about “pig butchering scams”, which combine tactics from love and investment scams.
He said: “These scammers tell you to invest for the future together. They build dreams with you, for example by talking about islands you are going to travel to. They are manipulating you any way they can. And at the end, they cut the victim. It’s called “pig butchering” because they fatten you up, raise you up through flattering words, and then they butcher you.”
Mr Bruce also discussed how Gaso works with government agencies in South-east Asia to secure the release of human trafficking victims who were duped into working for scam syndicates in Myanmar and Cambodia.
Providing tips for scam victims seeking to recover from their losses, Mr Bruce said: “At first, I thought, how am I going to get past this? Now, I think of the loss as just another house payment, an expensive car payment I’m going to have to make for 30 years. Trying to get back into the routine of everyday life and knowing I can still pay my bills, that’s how I psychologically cope to get past this.”

 

[worcer]

Govt this biggest scammer... u say leh...

 

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Crypto scam spoofing former Singapore-based exchange cheats 5 US investors of $13.8m​

Crypto scams had increased by 335 per cent in the first half of 2022 from the same period in 2021. PHOTO: REUTERS

Jessie Lim

Nov 22, 2022

SINGAPORE - Five victims in the United States have lost more than US$10 million (S$13.8 million) in a cryptocurrency scam that involved spoofed domains of the former Singapore International Monetary Exchange (Simex).
On Monday, the US Department of Justice (DOJ) said that between May and August, scammers lured the victims into participating in a cryptocurrency scam where they invested in fraudulent platforms, only for their funds to be siphoned away into private wallets.
To convince the victims that they were investing in a legitimate cryptocurrency opportunity, the scammers created seven fake domains of the former Simex, which was merged with two other companies in 1999 to form the Singapore Exchange (SGX).
In response to queries from The Straits Times, an SGX spokesman said that since the merger, Simex has not operated under its name.
The spokesman added: “SGX Group does not operate any investment platform, including a platform for individuals to trade crypto-products or any other investment product.
“Investors can access SGX-listed products only via a licensed broker which will have its own investment platform. As such, SGX also does not directly accept monies for the purpose of investment and so will not ask for such funds.”
A court in the US state of Virginia has authorised the seizure of these domains, the DOJ said.

Fraudsters or hackers use these domains to create websites that appear to belong to a trusted company when they in fact link the user to a fake website controlled by cyber criminals.
The DOJ said the victims would first encounter the scammers on dating applications or social media websites. Sometimes, the scammers would introduce themselves after sending a text message that they claimed to have sent to the wrong number.
“Scammers initiate relationships and slowly gain their trust, eventually introducing the idea of making a business investment using cryptocurrency,” the DOJ added.
“Victims are then... persuaded to invest money. Once the money is sent to the fake investment app, the scammer vanishes, taking all the money... often resulting in significant losses for the victim.”
To conceal the sources of the funds they have received, the scammers transfer them at once through multiple private wallets.
During the Global Anti Scam Summit earlier in November, Mr Camill Cebulla, the European sales director of Singapore-based cyber-security company Group-IB, said crypto scams had increased by 335 per cent worldwide in the first half of 2022 from the same period in 2021. In 2021, about US$55.3 billion was lost to all scams worldwide, according to a study by non-profit organisation Global Anti-Scam Alliance and data service provider ScamAdviser.
The DOJ advised victims of such scams to file a report with the US Secret Service.

 

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More than 5,000 phishing e-mails impersonating Case officers sent after cyber attack​

A total of 5,095 phishing e-mails were sent from two mailboxes. PHOTO: ST FILE


OCT 11, 2022

SINGAPORE - Cyber attackers hacked the mail server for Singapore's watchdog and impersonated its officers, sending out phishing e-mails to more than 5,000 consumers to tell them they had to make payment transactions to get monetary compensation.
The Consumer Association of Singapore (Case) said it started receiving reports of these phishing e-mails last Saturday.
Two mailboxes, "[email protected]" and "[email protected]" were affected. The first is used by the association to communicate with consumers who lodge complaints on Case's website, and the second is used for those whose complaints are escalated to mediation.
A total of 5,095 phishing e-mails were sent from both mailboxes.
In those e-mails, consumers were asked to participate in a live chat, and approach bank partners to perform payment transactions relating to their complaints to receive monetary compensation. No other details were available.
"While these e-mails were sent from e-mail addresses that Case may have used to communicate with consumers, the latest notifications they received did not originate from Case," said the consumer watchdog.
"Case will not direct consumers through e-mail or live chat to visit another website to key in their bank details."

Investigations confirmed that the unauthorised access was limited to consumers' e-mail addresses and all other personal information remained secure, said Case.
It said that once it learnt its mail server had been hacked, it worked with its IT vendors to suspend the affected mailboxes and reconfigure its e-mail accounts to stop more phishing e-mails from being sent. It said it would also work with the vendors to strengthen its cyber security systems to avoid a further recurrence.
Case said it is carrying out further investigations, and has reported the incident to the police and the Personal Data Protection Commission (PDPC) to resolve it.
It advised consumers who have received those e-mail notifications not to click on the links and disclose personal and bank details. Those who have performed the payment transactions should lodge a report with the police, and the anti-scam hotline at 1800-722-6688 as soon as possible.

 

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Man who lost $149k after clicking on phishing e-mail among at least 10 victims in Case cyber attack​

The police told The Straits Times the total losses amounted to at least $225,000. PHOTO ILLUSTRATION: ST FILE

Nadine Chua


DEC 4, 2022

SINGAPORE – A man who filed a dispute over a faulty computer with the Consumers Association of Singapore (Case) lost $149,000 in a matter of minutes after he clicked on a live chat icon in an e-mail purportedly from the consumer watchdog.
Mike (not his real name), who is in his early 50s and works in the education industry, was one of at least 10 victims who fell prey to the phishing e-mails in October.
The police told The Straits Times the total losses amounted to at least $225,000. Case said in October that 5,095 phishing e-mails were sent to consumers after cyber attackers hacked its mail server.
Mike received an e-mail on Oct 9 stating that he had been assessed by “Case” to be “eligible for compensation” after filing a dispute.
“I thought the e-mail was real because I had approached Case for mediation in June 2021 after buying a Dell computer that was faulty. I dropped the complaint that same month when I got a refund from Dell,” he recalled.
When asked why he had believed the content in the e-mail despite the issue being resolved more than a year ago, Mike said: “It did raise some suspicion that the e-mail was not real, but it said ‘payment is guaranteed’. So I was just curious to see what the compensation was.”
When Mike clicked on the live chat icon included in the e-mail, he was led to “what looked like a legitimate DBS website”.

“Everything happened quickly after that. When the site disappeared after I clicked it, I tried again. I later pressed ‘authorise’ on a notification that popped up on my mobile phone, which I was told would allow Case to look into the matter. And just like that, my money was gone,” he said.
Mike, who lost most of his life savings, filed a police report that night. The police confirmed the report and said investigations are ongoing.
Case executive director Lee Siow Hwee, who confirmed the watchdog had received feedback from Mike, said: “As the matter is currently under investigation, we are unable to comment further.”

When asked how Case was addressing the issue, Ms Lee declined to comment.
A DBS Bank spokesman told ST its systems remain secure and said: “The data leak at Case was used by criminals to successfully convince the victim to give up his banking credentials and transfer funds by carrying out multiple authorisations through a spoofed website.
“This is why data breaches require quick and clear communication to victims in accordance with data protection laws and best practice, so that impacted persons can take proactive steps to prevent further harm.”
MORE ON THIS TOPIC
More than 5,000 phishing e-mails impersonating Case officers sent after cyber attack
Victims lose $237,000 in SingPost, Singtel phishing scams
DBS said the bank has processes in place to prevent its intellectual property from being abused, including resources to take down fraudulent websites as soon as possible.
“Our customers are reminded to be mindful of the URLs of websites they are using and, if in doubt, to verify via the bank’s official channels,” said the spokesman.
Mike, who is single, said: “It feels terrible. The money was a huge chunk of my life savings. I need it as my parents are in their late 80s and depend on me – there are medical fees and medicine to think about. I’m very concerned that I’ll be unable to support them.
“I’m not earning a lot and it is a large sum of money. I’m just desperate to somehow get my money back.”
He recently sought help from the Financial Industry Disputes Resolution Centre (Fidrec), which specialises in the resolution of consumer financial disputes.
It was reported last month that fraud and scams accounted for nearly a third of claims handled by Fidrec for the financial year spanning July 1, 2021, to June 30, 2022.

 

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72 complaints filed against S’pore shipping firm Tamilan Express Cargo for non-delivery of goods​

The complaints against Tamilan Express Cargo were lodged between January and December 2022. ST PHOTO: JESSIE LIM

Jessie Lim

DEC 12, 2022

SINGAPORE - Some 72 complaints have been lodged against Singapore-based shipping company Tamilan Express Cargo and Logistics for failing to deliver items from Singapore to India.
The complaints were lodged between January and December 2022 by consumers, most of whom said the items they sent via sea cargo delivery never reached their intended recipients, even after waiting for up to a full year.
In response to queries, the Consumers Association of Singapore (Case) said: “The value of the items, which include electronic goods, household products, foodstuff, clothing and personal items, ranged between $90 and $20,000.
“In addition, consumers reported that the company was unresponsive to their requests for assistance and refund.”
Under the Consumer Protection (Fair Trading) Act, it is an unfair practice for a supplier to accept payment for the supply of goods or services when it knows or ought to know it will not be able to do so within the period specified by the supplier.
Case said it has issued a warning letter to Tamilan Express Cargo and will engage it to enter a voluntary compliance agreement to cease its errant business practices and promptly resolve consumer complaints.
A search on the Accounting and Corporate Regulatory Authority website last week showed that Tamilan Express Cargo, which is located in Little India, was registered in July 2020.

When The Straits Times visited the firm’s premises last Wednesday, the shutters were down and there was a notice informing customers that it was relocating.
In the notice, Tamilan Express Cargo said 25 containers worth of items belonging to its customers would be delivered in India, but did not specify a timeline.
When contacted by ST, Tamilan Express Cargo did not respond to queries about why the items were undelivered and whether customers would be compensated.


The police confirmed that reports were lodged and they are looking into the matter.

The store front of Tamilan Express Cargo was shuttered and there was a notice informing customers that the store was relocating, when The Straits Times visited the shop last Wednesday. ST PHOTO: JESSIE LIM
Mr Santhanam Muthukarthikeyan, 41, paid $900 to ship five boxes of household items – including a $869 Samsung television set – from Singapore to his home town in Tamil Nadu, India.
The Singapore permanent resident said: “We had photo frames containing pictures taken when our family went on holiday in Bali and Dubai. I feel sad because these are memories we cannot get back.”
Since he engaged Tamilan Express Cargo’s services in May 2021, he has not received confirmation that his parcels have been delivered to his family in India.
Mr Muthukarthikeyan said: “For the first three months, they told me my items will reach in two weeks. When I kept asking, they said my items were stuck in Customs but they refused to give me more information about the port and parcel tracking number.”

Shipping companies ST spoke to said it was unusual for parcels to spend many months in transit between Singapore and India.
Mr Hameed Sulthan Yousoof Ali, 44, owner of Star Cargo & Logistics, said: “For the last six months, we have been delivering our items within 30 days.
“There is no port congestion. After 14 days, if your items are still in the container, you have to pay the shipping line a fee every day.”
Mrs Priyanka Mistry, 33, said her personal items, including her late mother’s wedding sari, remain missing despite Tamilan Express Cargo assuring her last December they would deliver them to Pune, India, where she currently lives.
The Indian national had paid $240 in shipping fees to the company.
Mrs Mistry, who is a housewife, said: “These boxes contain all my memories. I’ve written to Case, I’ve tried calling Tamilan, but I’m not getting any outcome.
“I can’t even buy furniture for my new house because I’m still waiting and hoping I can get those items back.”

 

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Police warn of fake restaurant reservation scams during festive season​

At least five F&B operators here lost a total of at least $73,500 in July this year due to these scams. PHOTO: ST FILE
Yong Li Xuan


DEC 14, 2022

SINGAPORE - Food and beverage (F&B) operators that receive reservations this festive season that include bulk orders of expensive off-menu items may end up being scammed, the police warned on Tuesday.
They advised F&B operators to be alert to such scams and make checks before paying “suppliers” for the off-menu items. Scammers may make reservations and ask businesses to purchase off-menu items, such as expensive wine or seafood, in bulk from fake suppliers to defraud victims, the police said in an advisory.
At least five F&B operators here lost a total of at least $73,500 in July in such scams, the police said previously. The scammer, posing as a customer, would call an F&B operator to reserve many tables and ask for expensive off-menu items. The operator would then be given contact details of a fake supplier to buy these off-menu items.
The “customer” would inform the operator that a deposit or payment has been made to the latter’s bank account. In some instances, a forged screenshot showing funds being transferred to the bank account would be sent. After being directed to the fake supplier, the operator would order the items requested by the scammer and pay for them.
The operator would realise it has been scammed only when it discovers it has not received any funds, when the items are not delivered, or when the scammer becomes uncontactable.
The police advise F&B operators to be cautious and avoid making payments or deposits in advance when dealing with new suppliers. Instead, they should arrange to meet the suppliers and pay only after the goods have been delivered.
F&B operators should also search for online reviews of suppliers to check if they are legitimate before making a purchase, the police added.

 

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At least 130 people lost over $180k to parcel delivery phishing scams in two weeks​

The police advised the public not to click on URL links in unsolicited e-mails or text messages. PHOTO: ST FILE
Yong Li Xuan

Dec 15, 2022



SINGAPORE -At least 130 people have lost about $182,000 after falling for phishing scams involving the delivery of parcels in the last two weeks.
The police issued an advisory on Thursday warning the public of the re-emergence of such phishing scams during the festive season.
Victims would receive e-mails or text messages informing them that their parcels are awaiting delivery or that they have outstanding bills.
They would click on a URL link in the message to find out more about their parcel deliveries.
After clicking the link, they would be redirected to fraudulent websites that request their credit or debit card details and one-time passwords (OTPs).
They would realise they had been scammed only after discovering unauthorised transactions made to their credit or debit cards.
The police advised the public not to click on URL links in unsolicited e-mails or text messages.

People should always verify the authenticity of the information with official websites or sources, even if they are expecting parcels to be delivered, and check details of transactions before approving any, the police said.
Also, the public should never disclose personal or Internet banking details and OTPs to anyone.
Lastly, people should report any fraudulent credit or debit charges to their bank and cancel the card immediately, the police added.
The Straits Times reported on Aug 29 that $346.5 million was lost to all scams in the first half of this year. This is more than half of the $633.3 million lost in the whole of 2021.

 

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Former managing director jailed for crowdfunding for SMEs without licence​

Charmaine Ng

JUN 3, 2020

SINGAPORE - A former managing director of a company is the first person to be sent to jail for using crowdfunding to secure monies for small and medium-sized enterprises despite not having a licence to do so.
Nancy Tan Mee Khim of Noble Consulting Group was sentenced to eight months' jail on Wednesday (June 3).
Tan, who the prosecution described as the "directing mind" of the company, secured funding for four clients, raising a total of $15.4 million between July 2013 and December 2015.
In return, the company she was with received a commission of 15 per cent of the funds raised.
When two of the clients defaulted on interest and principal repayments in 2015, it led to around 100 investor-lenders losing a total of $9.5 million.
Tan was convicted on March 19 after a trial, making her the first person to be prosecuted under Section 82 of the Securities and Futures Act involving crowdfunding activity.
The court heard that the 41-year-old had set up the company under a different name, Angel Capital Consultancy in 2013, with Mr Steven Ling Hoe Khing.

The company was later renamed Noble Consulting Group in June the following year. Mr Ling resigned in July 2014.
Noble sourced for its clients through a loan broker and newspaper advertisements, and conducted general checks to see if the potential client companies were profitable.
The company also required the potential clients to provide financial statements for the previous two years, a list of their past, current and future projects, as well as documents showing payments they had received for past projects.

Between 2013 and 2014, Noble entered into consultancy agreements with four clients: Krish Chartered Bus Services, Glen Iris (International), Soilwood, and a group of companies comprising Adydas Marine Services, T S Marine Engineering Services and Scantech Marine.
Noble then solicited investments from the public for its clients through organised seminars advertised in The Straits Times, and created marketing materials such as brochures and flyers to disseminate to potential investors.
Noble also appointed around 10 to 13 agents as portfolio consultants to solicit lenders, and took part in investment exhibitions and fairs such as the Invest Fair at Suntec City in 2014 and the Smart Expo at Marina Bay Sands in 2015.
Tan gave instructions to the portfolio consultants and Mr Ling to encourage the public to invest in their clients as these companies had "good future prospects".
Investments or loans of between $25,000 and $200,000 were offered at various interest rates promising investor-lenders up to 7 per cent per quarter.
Tan and Mr Ling would then engage solicitors to prepare the investment or loan agreements between the client companies and the individual investor-lender.
The investor-lenders also received personal guarantees provided by the directors of the client companies for the loans.
As the managing director, Tan received at least $440,000 in income between 2013 and 2015.
However, in 2015, two of Noble's clients - Glen Iris and Soilwood - began to default on interest and principal repayments. Glen Iris eventually wound up and its director was bankrupted, while Soilwood's director became uncontactable.
As a result, about 100 investor-lenders lost a total of about $9.5 million.

 

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Jail for man who raised millions for SME clients which later defaulted on the funds​

Samuel Devaraj

Dec 20, 2022


SINGAPORE - He was the executive director of a company that raised millions of dollars for three of its clients through crowdfunding, but the firm did not hold the required licence to do so.
The three clients later defaulted on the money raised.
On Tuesday, Steven Ling Hoe Khing, a 36-year-old Malaysian, was sentenced to 12 months’ and 10 weeks’ jail. He had pleaded guilty to 22 charges under the Securities and Futures Act, with 50 other charges taken into consideration during his sentencing.
Ling’s co-accused, Nancy Tan Mee Khim, a 46-year-old Singaporean, was sentenced to eight months’ jail after she was convicted in 2020 following a trial. An appeal against her conviction and sentence was dismissed in March 2021.
Deputy Public Prosecutor Yeo Zhen Xiong Ling said the pair set up Angel Capital Consultancy, which later became Noble Consulting Group, on March 12, 2013.
The firm was in the business of helping small and medium enterprises (SME) raise money by crowdfunding. Tan was its managing director and main decision maker, while Ling was its executive director.
Between July 2013 and July 2014, the firm was involved in the raising of funds for Krish Chartered Bus Services, Glen Iris (Int’l), and Soilwood.

Noble solicited investments from the public for its clients by organising seminars, taking part in investment exhibitions and fairs, created and disseminating marketing materials to potential investors, and appointed agents as portfolio consultants to solicit lenders.
After Noble raised $13,260,000 from the public for its client companies, Glen Iris subsequently began to default around February 2015 and was eventually wound up in mid-2015.
Soilwood began to default in August 2015 and its director could not be located. About $9.5 million ended up being defaulted.

DPP Yeo said that while law firms were engaged to prepare the underlying documents for the various projects, they did not advise Noble on whether any capital markets services licence was required.
The firm did not hold any capital markets services licence to carry on business in any regulated activity and was not exempt from the requirement to do so.
Ling resigned from Noble in July 2014 due to a disagreement with Tan in relation to the firm’s continued business relationship with one of its clients.


Following his departure, the director of Krish requested Ling to continue raising funds for his firm, and Ling incorporated Credo Investments (S) and became its director and sole shareholder.
Between August 2014 and August 2016, Credo, which also did not hold any capital markets services licence, raised $33,352,000 from the public for Krish and KBS JV - a company set up by Krish’s director at Ling’s suggestion.
Sometime in December 2017, Credo’s client companies started to default on payments, with two directors of Krish and KBS JV leaving Singapore in August 2016 without returning. Investigations against them remain ongoing. As at Oct 2017, $10.755 million remained outstanding.
Separately, Credo made offers to investor-lenders that were not made in or accompanied by a prospectus or profile statement, which is required by law.
DPP Yeo said Ling’s role in Credo and Noble meant that the breaches were committed with his consent.
Ling was arrested on Aug 18, 2016. After he was granted bail, he travelled to Malaysia with permission from the police in March 2018.
However, he did not return and by July 2018, and no longer responded to e-mails or calls from investigating officers. A warrant of arrest was issued on Nov 11, 2020, and he was arrested by Malaysian authorities on March 4, 2022.
He was handed over to Singapore authorities on March 17 and charged in court on March 19.

 

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4 ex-remisiers jailed over scheme involving largest number of shares rigged in Singapore's history​

Joyce Lim
Senior Business Correspondent


AUG 30, 2022

SINGAPORE - Four former remisiers were jailed on Tuesday (Aug 30) for orchestrating an extensive market rigging scheme that involved the largest number of share counters rigged in Singapore's history.
The highly successful scheme, which took place between March 2015 and April 2016, went undetected by the authorities for 13 months, and saw the scheme's members manipulate the price of 55 share counters on 85 separate occasions.
This enabled them to reap sizeable illicit financial gains of $1.2 million at the expense of the unsuspecting investing public, in violation of Section 197 of the Securities and Futures Act.
Alan Lee, 47, a former remisier at OCBC Securities, was sentenced to 24 weeks' imprisonment, while Chew Wei Zhan (Gavin Chew), 43, from DBS Vickers Securities and Lee Wei Kai (Gavin Lee), 44, from Phillip Securities, were each handed a jail term of 23 weeks. All three were fined $260,000.
Co-accused Lim Ming Yi (Warren), 43, from Maybank Kim Eng Securities, was jailed for 19 weeks and fined $190,000.
In May, the fifth accomplice, Lim Ming Chit (Edmund), 47, from Phillip Securities was sentenced to 12 weeks' imprisonment and fined $260,000.
The five accomplices had conspired to create a false appearance of active trading in certain share counters listed on the mainboard or Catalist board of the Singapore Exchange (SGX) through the execution of coordinated trades in a target share counter.

The increased trading volumes in the counter would create artificial market interest in that counter and induce investors in the open market to trade the shares, thereby driving the share price upwards.
Once the share prices had risen to a specific level, the accused would offload their shares for profit within three days.
The profits would be divided and handed over in cash whenever the accomplices met in person.


Court documents stated that the scheme was discovered after a member of the public wrote a letter of complaint to the SGX customer service department, alleging that a group of remisiers was manipulating the trading of shares in EMAS Offshore, an offshore services provider which has since ceased trading on the SGX.

Lim Ming Chit (left) was sentenced to 12 weeks in jail and fined $260,000 in May. Alan Lee was given a 24-week term and fined $260,000. PHOTOS: LIANHE ZAOBAO, KELVIN CHNG
SGX Securities Surveillance conducted a review of the accused persons' trading activity and uncovered the extent of the manipulation.
Thereafter, the Monetary Authority of Singapore commenced investigations.

In the deputy public prosecutors' (DPPs) submissions on sentence, the DPPs highlighted that the offences were committed as part of a "highly premeditated, long-running and complex scheme", and relied on the accused persons' knowledge and expertise as remisiers to target a large number of share counters and exploit the financial infrastructure and national securities market.
The DPPs also noted that securities offences have unique characteristics that distinguish them from other financial crimes.
"There is a strong public interest in the protection of the investing public, as well as the institutions which support the functioning of the securities market. To that end, it bears mentioning that the class of public investors protected include retail investors, who may be unsophisticated or vulnerable," said the DPPs.
"Protecting confidence in the securities market is paramount. The undercutting of confidence in the securities market occasioned by securities offences is itself a dangerous harm, quite apart from the financial losses that such offences may cause."
The DPPs noted that over the period of manipulation by the accused persons, some unsuspecting public investors, who were induced by the artificial market interest in the share counters and traded alongside the scheme members, must have suffered some loss.
The four men could have been jailed for up to seven years for each charge of false trading.

 

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Penny stock crash mastermind John Soh gets 36 years’ jail, Quah Su-Ling sentenced to 20 years​

John Soh and Quah Su-Ling masterminded Singapore’s biggest case of stock market manipulation that wiped out nearly $8 billion in market value in October 2013. PHOTO: ST FILE, GAVIN FOO

Grace Leong
Senior Business Correspondent

Dec 28, 2022

SINGAPORE - John Soh Chee Wen, the mastermind of Singapore’s biggest case of stock market manipulation that wiped out nearly $8 billion in market value in October 2013, on Wednesday was sentenced to 36 years in jail, while his co-conspirator Quah Su-Ling was handed 20 years.
Both are appealing their sentences.
The court case spanned a record 349 successful charges in some 200 days of trial over nearly four years.
Prosecutors had sought a jail sentence of 40 years for Soh, and 19½ years’ for his co-conspirator Quah.
The pair were found to have manipulated the share prices of Blumont Group, Asiasons Capital and LionGold Corp – known collectively as BAL – between August 2012 and October 2013, through 187 trading accounts held with 20 financial institutions in the names of 58 individuals and companies.
In issuing the sentences on Wednesday, High Court judge Hoo Sheau Peng said: “In terms of the large number of controlled accounts and intermediaries and financial institutions involved, and the substantial volume of BAL trades and high percentage of whole market’s trading volume, ... the accused are to be held responsible for most of the trades.”
In deciding Quah’s sentence, Judge Hoo said: “ In my view, there is no dispute that Quah is less culpable, and she is less involved in terms of the scheme’s conceptualisation and execution. ... As a starting point for the false trading and price manipulation charges, I will impose on Quah two-thirds of the sentence imposed on Soh.”

Judge Hoo added: “The accused perpertrated the scheme on a substantial scale ....They were armed with a good understanding of financial markets and exploited the system for a prolonged period of 14 months. They did so for financial gain. By the time of the market crash and even after their scheme failed, they continued to subvert justice.
“It is necessary and of utmost importance for the global sentences to be imposed on the accused to capture the gravity of their wrongdoing.”
Soh, 63, has been in remand since November 2016, while Quah, 58, the former chief executive of Ipco (now renamed Renaissance United), is out on bail of $4 million.

Of the 180 charges on which Soh was convicted, prosecutors sought consecutive sentences for 11 charges (three of false trading, three deception charges, two cheating charges and three tampering charges) and an aggregate sentence of 40 years’ jail.
For Quah, who was convicted on 169 charges, the prosecution sought consecutive sentences for six charges (two false trading charges, three deception charges and one cheating charge), and an aggregate sentence of 19½ years’ jail.
Deputy Public Prosecutor Nicholas Tan in a November hearing likened the near $8 billion loss in market capitalisation resulting from the penny stock crash to “the equivalent of wiping out the market capitalisation of 33 Pan-Electric Industries (Pan-El)”.
The collapse of Pan-El in 1985, which had a market cap of $230 million, resulted in the closure of the Singapore and Malaysian stock exchanges for three days in order to contain the fallout on heavily leveraged stockbroking firms.
But Soh’s defence lawyer, Senior Counsel N. Sreenivasan, had argued that in the aftermath of the penny stock crash, “the market was not closed... and no financial institution went down”.

He said that Soh and Quah were not the only persons involved in the scheme.
Mr Sreenivasan had said that for the purposes of sentencing, a significant part of the BAL trade volume carried out by prosecution witnesses Leroy Lau, Ken Tai, Henry Tjoa and Gabriel Gan should not be attributed to Soh and Quah.
“Their sentences cannot be such that they are the scapegoats for the wrongs of others,” he said.
In asking for a sentence of between seven and 13 years for Soh, Mr Sreenivasan had said: “In the final analysis, the present case is no Pan-El or Barings/Nick Leeson, and the sentence cannot be anything close to the 40 years that is being sought.”

 

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At least 877 people duped by fake buyers on Carousell since December​

At least 975 victims have been duped by this phishing scam variant between January and November. PHOTO: ST FILE
Aqil Hamzah

DEC 28, 2022

SINGAPORE - At least 877 victims have fallen prey to scams involving fake buyers on online marketplace Carousell since the start of December, with losses totalling at least $836,000.
This is a sharp increase from the previous month, when there were at least 352 such victims, the police said.
At least 975 victims have been duped by this phishing scam variant between January and November, with at least $938,000 lost.
The police said on Wednesday that they observed an uptick in activity involving the scam in December.
Scammers posing as buyers would ask sellers for contact details so that they can send a link to a website to facilitate payment for or delivery of the items on sale.
The scammers would then send the victims either an e-mail, SMS or WhatsApp message with dubious URL links, such as cutt.Iy/31uXCDu or carousell.quick-funds.in/266780736.
Alternatively, the scammer would send a QR code for victims to scan.

After doing so, victims would be redirected to a spoofed website to provide information such as their Internet banking login credentials, bank card details or one-time password (OTP).
They would only realise they have been scammed when they notice unauthorised transactions made from their bank accounts or cards, said the police.
The police advise sellers to verify a buyer’s identity by checking his Carousell account’s verification status, creation date, reviews and ratings.

The police said they observed an uptick in activity involving the scam in December. PHOTO: SINGAPORE POLICE FORCE
Sellers should also verify URLs. Only domains that end with carousell.com or carousell.sg are Carousell domains, while other URLs such as carousellpay.com, carousell.xxx.com, carousell-pay.com, carousell.pay-sg.com are not domains from the platform.
“Carousell does not send links via SMS, and would only send OTPs via SMS. This OTP should only be keyed into the Carousell application or webpage,” the police said.

A spoofed Carousell Protection phishing website (left) and a phishing website (right). PHOTO: SINGAPORE POLICE FORCE
They added that Carousell does not ask for payment, order confirmation or card details via external sites or e-mail and stressed the need to be cautious when dealing with buyers who asked for personal information.
Users could also check out the platform’s help centre for information on how to differentiate between Carousell’s legitimate websites and its phishing counterparts.

 

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More than $500,000 lost to vehicle-related scams since December 2022​

Fraudsters would send text messages purportedly from LTA to victims to notify them of unpaid bills or fines. PHOTO: ST FILE
Chin Hui Shan

Jan 10, 2023

SINGAPORE - At least 317 victims have lost about $557,000 since December 2022 to phishing scams involving unpaid vehicle-related bills or fines, the police said on Tuesday.
Fraudsters would send text messages purportedly from the Land Transport Authority (LTA) to victims to notify them of unpaid bills or fines, the police said.
The victims would then click on the URL link embedded in the messages to view information about the alleged bills or fines.
They would be directed to fraudulent websites, where they would be required to provide their credit/debit card details and One Time Passwords (OTPs).
The police said: “Victims realised that they had been scammed only after discovering unauthorised transactions made to their credit or debit cards.”
The police added that LTA does not notify road users of unpaid bills or fines via text messages or request for payments for offence notices, vehicle registration, and licensing matters via URL links embedded in text messages.
Instead, members of the public will be asked to check their outstanding fines and vehicle-related payments on the OneMotoring website.


The payments must then be done separately on LTA’s e-payment services, Internet banking or at AXS or SAM stations.

Members of the public received fraudulent text messages about an unpaid bill or unauthorised transaction made to their credit/debit card. PHOTOS: SINGAPORE POLICE FORCE
The police reminded the public to not click on URL links provided in these unsolicited text messages and to always verify the authenticity of the information with the official sources or website.
The public should also never disclose their personal or Internet banking details and OTP to anyone, the police said.
The police advised the public to report any fraudulent bank transactions and cancel their card immediately.
Those who have information relating to such scams can call 1800-255-000 or go to www.police.gov.sg/iwitness to submit a report.
For scam-related advice, the public can call 1800-722-6688 or visit www.scamalert.sg

 

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Retired reporter scammed out of $3 million, forced to sell properties to pay loan sharks​

The scammers got a "police officer" to hand Madam Poon Sing Wah documentation (above) of her “crimes”. PHOTO: LIANHE ZAOBAO

Jan 14, 2023

SINGAPORE - Scammed out of $3 million, a woman in Singapore had to sell two of her properties to pay off her ensuing debts with loan sharks.
Speaking to Lianhe Zaobao, retiree Poon Sing Wah, 74, said she was cheated of her hard-earned money in 2019 by people claiming to be Chinese officials.
Madam Poon, who is a former Zaobao reporter, said she received a call from a man posing as an employee from courier company DHL. He claimed Madam Poon had sent several forged passports to Beijing that were detained at Customs.
Later, a man who claimed to be an Interpol officer in China told Madam Poon she was being investigated for masterminding a money laundering scheme. As a result, the money in her bank account in China would be frozen for two years, he said.
Madam Poon was born in Shanghai and still maintained a bank account there.
Preying on her distress, the scammer offered to help her. They even got a female “police officer” to hand her documentation of her “crimes” as proof.
“Both times, the person would meet me at the carpark (at her condo in Singapore),” said Madam Poon, who was told repeatedly that the police were secretly helping her and that she must not tell anyone about the ongoing “investigation”.

She heeded every instruction from the scammers. These included logging on to a website “operated by Chinese police”, and more crucially, pressing the “OK” button on her bank’s digital token every three seconds to “verify her fingerprints”.
She later realised that each time she pressed the button, thousands of dollars were syphoned out of her account.
“I lost 50,000 yuan (S$9,840) every three seconds,” she said.

Madam Poon logged in to her China Zheshang Bank account a total of 266 times in 20 days, with the outflow of bank transfers amounting to a whopping 14.86 million yuan.
“That was the equivalent of $3.03 million then,” said Madam Poon, who was unaware her life savings were being emptied during those 20 days.
In addition to her savings, the scammers also instructed her to remit more money from Singapore to her Chinese bank account for various purposes – from needing to prove her financial strength to the Chinese authorities to paying for the burial fees of a victim who purportedly died because of her.
To raise the additional funds, Madam Poon borrowed money from friends and loan sharks.
She suspected it was a scam only when a friend raised doubts about the “investigation”.

By then, it was too late.
When she realised she could not log in to her China Zheshang Bank account, she called the bank and was told she had just 0.76 yuan left in it.
She flew to Shanghai and made a police report, but was told by the police there that it was out of their jurisdiction as the crime did not happen in China.
To clear her loan shark debt, Madam Poon was forced to sell two of her properties.
She told Zaobao she lost 10kg from the incident and had even thought of ending her life.
“Although I wouldn’t have to care about anything if my life ended, what about others whom I owed money to?”
She decided to share her experience to serve as a warning to others. “I would like to use this unfortunate incident to raise public awareness,” she said.
Madam Poon said she took legal action against China Zheshang Bank for its alleged lapses in security, but the court did not rule in her favour.
What did give her some comfort, though, was that her children did not get upset after finding out about the scam.
“I apologised and told them I was very sorry, as that sum of money was meant to have been theirs.”

 

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Scammers duped man who took PhD, claiming he had to pay additional taxes for degree​

The scammers had convinced the victim that legal action would be taken against him if he did not pay up. PHOTO ILLUSTRATION: ST FILE

David Sun
Correspondent

Jan 14, 2023

SINGAPORE - Having spent two years pursuing an online PhD from an American university, a man was told he would not get his degree if he did not pay additional taxes.
Wanting to be known only as Mike, the semi-retired executive said he had already paid about US$20,000 (S$26,500) in school fees to the university, which was a legitimate one.
But a person claiming to be from the Internal Revenue Service in the United States said he would have to pay another US$14,000 in “educational taxes” that would later be refunded, or the agency would withhold his degree and open an investigation against him.
Even though the calls and messages purportedly from the authorities in America came via WhatsApp, and not via official university channels, Mike, who is in his 60s, was afraid because of the threat of legal action.
He said: “I needed the PhD, which I worked hard for via online classes and had written a thesis for almost two years. I was afraid I would be detained when I travelled to the US for the convocation.
“My mind was really clouded, and I didn’t suspect it was a scam. They kept pressing me and so, in the end, I gave in.”
He had already been issued his transcript, but the scammers had convinced him legal action would be taken against him if he did not pay up.

But when he went to the bank in December 2022 to transfer the money, alert bank staff stopped him and had the bank’s compliance team investigate further and alert the police.
Assistant Superintendent of Police Lu Rui Jue, an anti-scam investigation officer, was alerted to the case and said he immediately sprang into action. ASP Lu said he quickly contacted Mike and went to meet him near his home.
Said ASP Lu: “The challenge with engaging scam victims, especially over the phone, is that they have already established misplaced trust with scammers and are ironically sceptical of real authorities.

“That’s why I assessed that it was important to meet him in person and assure him of my identity. Fortunately, I did so and convinced him not to make another transfer.”
ASP Lu met Mike at the void deck of the latter’s block within 20 minutes of hearing about the case, and explained to Mike that he was a victim of a government official impersonation scam.
While the degree was real and the school fees paid were legitimate, scammers had somehow been able to get his details and trick him into thinking he also needed to pay additional taxes.
ASP Lu told Mike that if the school or the authorities in America were going to take action against him, they would have contacted him via official channels and not through WhatsApp.

ASP Lu said the role of a police officer dealing with scam victims is complex. To prevent harm and further loss, it is essential to relate well with victims, to manage their emotions and gain their trust, he said.
“Once I convince them that they are victims and that I am here to help, we may then begin to bring perpetrators to justice and hopefully recover the victims’ losses.”
He spent about 45 minutes with Mike, finally convincing him that the additional taxes were a ruse and that he need not worry about his degree being rescinded.
Mike was able to get his money back because the transaction for the purported taxes had been blocked by the bank.
But he said that before that, he was confused and worried, questioning what was real and becoming sceptical of everything he came across online.
Keeping the situation to himself made things worse.
He said: “There was no one I could blame but myself. Who could I turn to?
“I didn’t want my loved ones to worry, because it was my mistake and I didn’t want others to suffer with me.”
Mike said he was grateful to the alert bank staff and the police for stepping in to prevent him from losing his hard-earned money.
He said: “I hope my story acts as a cautionary tale, because scammers are getting increasingly sophisticated and intelligent. It’s not a glamorous thing to share – falling for a scam. If I can help someone avoid making the same blunders, I’ll be happy. I don’t want anyone else to go through the trauma and agony that I’ve been through.”

 

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The painful cost of scams: Suicide and self-harm​

The consequences of falling for a scam often spill over to the victim’s loved ones. PHOTO ILLUSTRATION: ST FILE

David Sun
Correspondent

Jan 14, 2023

SINGAPORE - Scams can kill, and have caused victims to take their own lives or engage in self-harm.
Deputy Assistant Commissioner Aileen Yap, assistant director of the Anti-Scam Command, said anti-scam investigators have come across several such incidents here in the past few years.
While the police were unable to provide figures on how many scam victims had committed suicide, several cases have stood out.
Said DAC Yap: “In the course of our investigation work, we have seen heart-breaking incidents where victims sink into bouts of depression, self-harm, with some even taking their own lives.”
She recalled a case here several years ago involving a man who had lost his life savings after falling for a tech support scam.
After realising he had been scammed of all his money, the man took his nine-year-old daughter to stay at his brother’s home for the night, and said he would be back the next day.
But he did not return.

When his brother and daughter went to his home to look for him, the door was ajar, and he was found with self-inflicted injuries.
He had a weak pulse and died in hospital several days later.
DAC Yap said: “The impact of scams is more dangerous than we think – it can cause young children to lose their parents, and people to lose their sons, daughters and loved ones.”

She recalled another case where a woman had fallen for a government official impersonation scam, and had handed over all her money to the scammers before she realised she was a victim and made a police report.
Officers went to her home to get her statement.
But no one answered when they knocked on her door.
The officers rang her, and heard the faint ringing of a mobile phone from inside the unit.
They kept knocking, and when the door finally creaked open, the woman inside admitted she had sealed up the entire unit and had attempted suicide because she had lost everything.
The officers rushed in and called the Singapore Civil Defence Force.

DAC Yap said the woman survived, but it was a very close call.
“To scammers, they may think they are only cheating victims of money. But in reality, they are taking away the lives of people’s daughters, sons, fathers and mothers,” she said.
“This is why we have to take scams seriously and work with the community and our stakeholders to stop these scam syndicates.”
Mr Kwek Boon Siang, principal psychologist at the crime, investigation and forensic psychology branch of the Home Team Behavioural Sciences Centre, said scam victims often feel violated after falling prey.
“There is a breach of trust, and their belief system is violated, and many no longer dare to believe in others,” he said.
“Their own identity has collapsed, taken over by shame, guilt and loss.”
He added that the consequences of falling for a scam often spill over to the victim’s loved ones.
He said: “The family members and loved ones of scam victims are often greatly affected. In some cases, victims do desperate things, like turning to suicide and hurting themselves, and their loved ones have to live with the consequences.”

Mr Kwek said when people find out their loved ones turned to self-harm because of scams, they can suffer what is known as survivor guilt.
“The family members can end up blaming themselves, asking why they did not spot the signs, care enough or do more,” he said.
“Hindsight is always perfect, and the ones affected may have to live with the whys and the grief. This guilt can be very intense.”
That is why he urges people to not just know about scams, but to also look out for and warn others.
Singapore takes a multi-pronged approach to tackling scams by getting the Government, private sector and community to work together.
A key aspect, however, requires the public to take active steps to protect themselves and their loved ones.
Mr Kwek said: “Guardianship is important, so we can help others avoid falling for scams. There are a lot of messages out there already, but when they come from a trusted friend or family member, people tend to listen and process better.”

 

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Ex-CFO jailed 20 years after duping financial institutions, causing losses of more than $631m​

Shaffiq Alkhatib
Court Correspondent

Jan 17, 2023

SINGAPORE - A commodity firm’s then chief financial officer (CFO) who duped 16 financial institutions worldwide and caused more than US$469 million (S$631 million according to court documents) in losses was sentenced to 20 years’ jail on Tuesday.
In earlier court proceedings, the prosecution said that this amount was “unprecedented and staggering” – almost as high as the $633.3 million victims in Singapore lost to all scams in 2021.
Lulu Lim Beng Kim, who was then working for Agritrade International, had duped the financial institutions into providing her company with millions of dollars in trade financing. The losses were incurred between January 2017 and November 2019.
They included major banks in Japan, South Korea, India and Taiwan.
Before handing down the sentence on Tuesday, District Judge Kow Keng Siong noted that according to defence lawyers Noor Mohamed Marican and Mohd Munir Marican, Lim was not the mastermind behind the offences and did not commit them for her personal gain.
In December 2022, Lim 63, pleaded guilty to 12 charges, including cheating and falsification of accounts. Twenty-four other charges were taken into consideration during sentencing.
While serving as Agritrade’s CFO, Lim instructed her subordinates to submit to the institutions financial statements which were unaudited and false.

These documents were required by the financial institutions to assess how much credit they would extend to Agritrade.
The financial institutions would then disburse these sums to Agritrade’s suppliers for the purchase and sale of goods and other purposes.
Agritrade or customers of its supplied goods were then expected to repay the financial institutions at a later date.

The 16 finance houses disbursed more than US$586 million in total to the suppliers, Agritrade International and its subsidiaries.
Police said in a statement on Tuesday that Agritrade later defaulted on these loans, and the total loss suffered by the financial institutions was US$469.1 million.
Investigations revealed that the commodity firm’s senior management had helped to incorporate these subsidiaries or sat on their board of directors.
In January 2020, Agritrade, whose business included palm oil and coal mining, came under financial strain due to the collapse of oil and coal prices.
It also faced fraud allegations directed at chief executive Ng Xinwei and his father, Mr Ng Say Pek, who founded the business.

On Jan 15, 2020, the Commercial Affairs Department (CAD) started investigating Agritrade.
Lim left Singapore for Britain the next day and did not respond to attempts by the police to contact her over the next year.
An Interpol red notice was then issued against her.
She was arrested in January 2021, after the police received information that she was in the United Arab Emirates.
In earlier proceedings, Mr Noor Mohamed Marican, who heads law firm Marican & Associates, told the court that Lim claimed she was manipulated by Mr Ng Say Pek.
Court documents did not disclose the outcome of the cases involving the father and son.
Following Lim’s sentencing on Tuesday, CAD director David Chew said: “CAD would like to thank Interpol and our foreign counterparts for their assistance to arrest and send Lulu Lim back to Singapore to face justice for one of Singapore’s largest cases of trade financing fraud.”
For each count of cheating, an offender can be jailed for up to 10 years and fined.

 

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Temasek-backed Zilingo, which fired CEO Ankiti Bose, to be liquidated: Sources​

Zilingo, a once high-flying company, pitched into a downward spiral after complaints of financial irregularities. PHOTO: ZILINGO

Jan 20, 2023

SINGAPORE – Singapore’s Zilingo is set to enter liquidation, capping a months-long crisis that shocked Asia’s technology and start-up industries.
The fashion-tech company’s board appointed EY Corporate Services as provisional liquidator, sources familiar with the matter said, asking not to be named as the matter is private. The board informed major shareholders and creditors of its decision, they said. The board declined to comment for this story.
The liquidation process spells an end to a start-up whose implosion and months-long battle for survival sent shock waves through South-east Asia and India’s tech industries. The once high-flying company pitched into a downward spiral after complaints of financial irregularities, culminating in the dismissal of high-profile co-founder and chief executive Ankiti Bose in May.
Ms Bose, 31, continued to deny any claims of wrongdoing throughout the crisis and argued she was being unfairly targeted.
As the clash between Ms Bose and the board escalated, she hired an attorney to fight back against what she described as a “witch hunt”.
Ms Bose argued that she was getting blamed for decisions and practices that were well known by senior managers and directors.
The liquidation comes after Zilingo creditors Varde Partners and Indies Capital Partners found a buyer for some of its assets, the sources said.

Those assets have been transferred to the new owner for an undisclosed purchase price, they said.
Zilingo had been one of the highest-profile start-ups to emerge from Singapore.
State investor Temasek expressed concern the meltdown was tainting its reputation and urged the company to fix the situation.
Other prominent investors included Sequoia Capital India, the regional arm of the Silicon Valley company that backed Apple and Google.
At the heart of the company’s breakdown was the soured relationship between Ms Bose, a celebrity CEO who criss-crossed the globe to speak at tech gatherings from Hong Kong to California, and her long-time supporter, Mr Shailendra Singh, head of Sequoia India.
Allies for years, they fell out as financial pressures mounted. Mr Singh lost faith in the management skills of the young founder he had championed, while Ms Bose believed Mr Singh betrayed her by pushing her out of her own company.
Zilingo was valued at close to US$1 billion (S$1.3 billion) in a 2019 funding round, when Ms Bose was 27. But the Covid-19 pandemic took a toll on its business, and the company was forced to cut jobs as revenue dwindled.
Chief financial officer Ramesh Bafna, a former chief financial officer of fashion e-commerce platform Myntra, left last May, a mere two months after joining the startup, and chief operating officer Aadi Vaidya departed soon afterwards.
In June, the board started weighing options, including liquidation and a management buyout, Bloomberg News reported at the time. That included a presentation from its financial adviser Deloitte LLP to sell off the company’s assets. Mr Dhruv Kapoor, who co-founded Zilingo with Ms Bose in 2015, made the pitch for a buyout.
Once operating in at least eight countries with hundreds of workers, Zilingo had most recently fewer than 100 staff in India, Indonesia, Sri Lanka and Bangladesh after a major downsizing amid the crisis. BLOOMBERG

 

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Scam victim’s $10,001 used to buy Bitcoin; High Court rules crypto seller gets the money​

The High Court found that there were two victims in the case - the scam victim and the man who sold his cryptocurrency. PHOTO ILLUSTRATION: REUTERS

Selina Lum
Senior Law Correspondent

JAN 30, 2023


SINGAPORE - A man who unknowingly sold his Bitcoin to a scammer was allowed to keep the money for now, even though the $10,001 used to transact the deal had come from the victim of a fraudulent bank transfer.
A High Court judge found that there were two victims in the case – the man whose stolen funds were used by the scammer to buy the Bitcoin, and the man who sold his cryptocurrency.
A court fight had ensued between the seller and the bank transfer victim after the money was seized in the course of police investigations. Each had claimed the money should be returned to him.
In a written judgment last Friday, Justice Aedit Abdullah ruled that both men had lawful possession of the money.
On the one hand, the money originated from the bank account of Mr Ling Kok Hua and was fraudulently transferred. On the other hand, Mr William Lim Tien Hou had received the money in a legitimate contractual transaction.
He ruled that the money should be returned to the individual it was seized from, which is Mr Lim.
The judge said: “I understand that both parties have been put to expense and time in dealing with the aftermath of a fraud that neither was implicated in, and which both were victims of.”

He noted that his decision was on the basis of provisions in the Criminal Procedure Code governing the return of seized property, and has no effect on a civil court if parties start a separate civil action to assert their rights.
“However, I would urge the parties to see if they can come to some sort of resolution between themselves that would avoid further time and expense for both.”
On Nov 10, 2018, a user named “haylieelan” on localbitcoins.com contacted Mr Lim – who had placed an advertisement to sell Bitcoin on the peer-to-peer trading platform – for a Bitcoin trade worth $10,000.


After Mr Lim asked “haylieelan” to provide a photograph and identity details, the user submitted a photo of Mr Ling holding his identity card and a note stating that he was buying Bitcoin from “cryptotil”, which was Mr Lim’s username.
Mr Lim received $10,000 in his bank account and released the Bitcoin to “haylieelan”. Later in the day, he received another $1 but had no idea what it was for.
On the same day, Mr Ling was duped into believing that he was communicating with his former supervisor on Facebook when, in fact, he was speaking with a scammer who had hacked the account.
Mr Ling agreed to help transfer funds to a Bitcoin trading account, which turned out to be Mr Lim’s.
Thinking that he was helping his former boss, Mr Ling provided his online banking credentials and allowed the scammer remote access to his bank account via the TeamViewer application.
Mr Ling first prepared a transfer of $1 to Mr Lim’s bank account.

At the same time, the scammer asked Mr Ling to provide a photograph showing his identity card details and a piece of paper stating that he was buying Bitcoin from “cryptotil”. Mr Ling complied.
Shortly after, the scammer asked Mr Ling to provide proof of address. He complied by taking a photograph of a letter which contained his address.
While Mr Ling was taking the two photographs, the scammer altered the sum of $1 to $10,000 and effected the transfer. Mr Ling realised this only after the transfer had gone through.
The scammer asked Mr Ling to make a further transfer of $1, and tried to alter the sum to $30,000, but Mr Ling corrected it back to $1 before effecting the transfer.
Mr Ling made a police report. Upon the conclusion of police investigations, Mr Lim and Mr Ling indicated that they would be laying competing claims on the seized money.

A disposal inquiry was held to determine how the money should be distributed.
In 2021, a district judge ruled that the sum should be returned to Mr Ling.
The district judge said Mr Lim appreciated the risks associated with Bitcoin trades, and that while he conducted due diligence checks, the money remained tainted by criminality.
Mr Lim then appealed to the High Court.
Justice Abdullah reversed the Lower Court’s decision, saying that it was immaterial whether the possession of the asset came through a risky transaction.