The case is the latest in a string of scandals involving trading firms in Singapore. Ng Yu Zhi, a 33-year-old director of Envy Global Trading Pte Ltd and Envy Asset Management Pte Ltd, was charged with two counts of cheating and two of fraudulent trading.
Fraudulent Trading - Prosecutors said they expect to bring more charges.A court granted Ng bail on Monday after the charges were read. Police have seized about S$100 million worth of his assets.Fraudulent trading can carry a prison term of up to seven years, while cheating is punishable with up to 10 years.
Ng is accused, according to chargesheets, of being involved in duping investors into lending money to buy nickel from Poseidon Nickel Ltd and to buy receivables from forward contracts with BNP Paribas, though there were no such deals.
S$1 Billion Scam - His companies are believed to have raised at least S$1 billion ($746 million) from investors to fund nickel trading activities between October 2017 and February 2021.Investors were promised varying returns, which averaged 15%, over an investment period of three months.
The prosecution told the court that some S$300 million was transferred into Ng’s personal account.It said investors were paid about S$700 million, but are still owed about S$1 billion, based on the face value of the outstanding contracts, as many had rolled over their contracts.A further S$200 million remained unaccounted for, according to the prosecution.
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