s$1.5b-envy-global-fraud-case:-ex-director's-bail-raised-to-s$6-million-after-bankruptcy-reveals-more-assets

SINGAPORE: A businessman at the centre of an alleged US$1.1 billion (S$1.5 billion) nickel investment fraud case has had his bail amount increased from S$4 million to S$6 million.

It was also decided on Thursday (Jan 19) that the case involving Ng Yu Zhi, former managing director of Envy Global Trading, will be transferred to the High Court after a request by the prosecution.

This is because the potential jail terms that could come from the 105 charges he faces would exceed 20 years, the maximum sentencing jurisdiction of the State Courts.

The prosecution had made the request after a recent hearing revealed that Ng, who was declared bankrupt in September 2022, had another S$15.6 million in assets.

Most of these assets, which include an apartment and a vehicle, are located overseas and are owned or held by other individuals.

Ng, 35, was first charged in March 2021. He faces charges for offences like criminal breach of trust, cheating, fraudulent trading and forgery.

Ng ran Envy Global Trading and Envy Asset Management, raising money from investors to purchase nickel and allegedly tricking investors to buy into a portion of receivables from the sale through forward contracts.

Investors were promised varying returns, averaging 15 per cent every three months, but the companies did not purchase any nickel, the prosecution alleged.

Among Ng’s purported victims are a criminal laywer, a former president of the Law Society of Singapore and a general counsel at Temasek. 

ARGUMENTS BY PROSECUTION

Deputy Public Prosecutor Gordon Oh, who was flanked by a team of three other prosecutors, raised two points in support of his application for the bail to be increased by S$2 million.

First, the case will be transmitted to the High Court, which means higher potential sentences and therefore a higher potential flight risk.

Second, new information means that it is now known that Ng has access to additional funds overseas.

In a statement Ng made to the High Court as part of his bankruptcy proceedings, he had S$107 million in assets, mostly overseas.

This sum exceeds the amount known about by the prosecution in July 2022 by about S$15.6 million.

Access to funds overseas translates to potential flight risk, said Mr Oh.

DEFENCE’S REBUTTAL

Defence lawyer Navin Naidu, partner at Dentons Rodyk & Davidson and former deputy public prosecutor, rubbished the prosecution’s arguments and called the suggested increase in bail “crushing”.

He said the arguments, which were not supported by any affidavit from the Commercial Affairs Department, were “a blatant attempt to throw big numbers at the court” to get the court to feel an increase in bail was necessary.

He said the burden is on the prosecution to show a material change in circumstances warranting bail, and to have proof for the things they are alleging.

Mr Navin said there has been no increase in the number of charges faced by his client, and his client has not shown he is “going to run”.

There are also multiple existing bail conditions to ensure Ng’s attendance in court, such as his electronic tagging, curfew and his prohibition from going to certain places in Singapore, said the lawyer.

Ng has also been cooperating with authorities and giving information about his overseas assets.

The fact that Ng is now bankrupt means that the system is holding him accountable, said Mr Navin.

Ng’s bailor is his 72-year-old father, who is a retiree living on his Central Provident Fund payouts, said the lawyer.

Ng’s father “effectively liquidated all his savings and stock options” in July 2021 to raise the bail of S$4 million for his son, and Ng would not want to see his father face financial hardship by running away, said Mr Navin.

“He won’t do that to his own father,” he said. “(His father) is on the edge, with this application being made.”

JUDGE’S DECISION

District Judge Terence Tay said bail applications in instances where new circumstances suggest a heightened flight risk should be made and dealt with urgently.

The prosecution had gone to court on Tuesday over the bail application but it was adjourned to Thursday.

If there was such an urgency, the prosecution should have proceeded on Tuesday, but instead both sides agreed to adjourn the mention to Thursday.

“The prosecution loses the edge in that regard because factually, the accused is here,” said the judge.

However, he said that not all factors can be viewed in the same vein as far as flight risk is concerned.

It is clear that assets overseas are within Ng’s control based on his own affidavit in the High Court, said Judge Tay.

While the prosecution has not provided a clear account of how the assets are linked to the charges, this is not critical as the main concern is whether Ng can use his overseas assets to sustain his lifestyle if he absconds, he said.

The case will be heard thereafter in the High Court.

 

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