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Bank allowed to seize $38m assets SourceStraits TimesDate16 Mar 2012AuthorK.C. VijayanA FOREIGN bank can now seize assets worth up to US$30 million (S$38 million) from convicted swindler Chia Teck Leng after it obtained a High Court judgment order yesterday.
Bayerische Hypo-und Vereinsbank Aktiengesellschaft (HVB) was one of four banks from which he swindled $117.1 million between January 1999 and March 2003.
Chia, then a finance manager with Asia Pacific Breweries (APB), was convicted in 2004 of forgery and cheating and sentenced to 42 years' jail for what was seen as the largest case of commercial fraud.
Now 52, he is said to have lost more than half of what he siphoned off - $62 million - in casinos worldwide before he was nabbed.
The suit by German-based HVB against him follows its failed court bid against APB to be jointly liable for his misdeeds and help settle the US$30 million sought.
The Court of Appeal had rejected its move against APB in May last year, describing the case as 'a cautionary tale of how two foreign banks, in their eagerness to secure a banking relationship with APBS (Asia Pacific Breweries Singapore), a prominent local blue-chip company, failed to exercise due diligence and extended substantial credit facilities to APBS, relying merely (and almost entirely) on representations made by Chia'.
Lawyers from WongPartnership also succeeded yesterday in getting a freeze order of Chia's assets from Justice Andrew Ang.
This means Chia is barred from disposing of or reducing any asset until the US$30 million judgment is satisfied.
The High Court order would entitle the bank to seize two properties owned by him and worth about $2.5 million.
These comprise a condominium unit in Grange Tower sold as part of a collective sale in 2006 for which about $1.6 million was received, and an apartment in St Francis Lodge.
Chia's wife, Madam Mok Chuay Fun, defended by lawyer Edmond Pereira, is contesting HVB's claim to the entire proceeds. She wants her share of the money that was put into the purchase of the properties to be returned to her first.
A High Court pre-trial conference is due to be held on March 29 to provide directions for a hearing on this.
HVB's move against Chia, understood to be the biggest judgment order against a single offender, is not the end of the saga to retrieve as much of the money as possible.
Separately, the bank and the three others that he swindled - Skandinaviska Enskilda Banken, Mizuho Corporate Bank and Sumitomo Mitsui Banking Corporation - will be showing up for a disposal inquiry later this month in the High Court, for a decision on how the money recovered by police from banks here and abroad is to be distributed among interested parties.
The total of about $47.8 million recovered by the Commercial Affairs Department includes A$22,311,949 (S$29.6 million) and A$3.86 million from bank accounts in Australia once used by Chia.
Both sums were returned through court orders in Australia in 2003 and 2008 after interested parties there had lost in objections to the move.
At the inquiry, Chia's former girlfriend Li Jin is also expected to claim her stake in about $1.3 million seized from the accounts.
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Source: Straits Times