Two Singaporeans Charged for Cheating Eight Banks

Source: Regulation Asia Editors, Regulation Asia 2020-06-16

Two former employees of a crude oil products supplier allegedly created fictitious sales contracts and invoices to obtain $340mn in financing from eight banks.

Two former Coastal Oil Singapore employees were charged in court on Friday (12 June) for allegedly cheating eight banks in Singapore and Hong Kong out of USD 340 million in loans, Business Times reported.

Both Singaporeans, 60-year-old Ong Ah Huat and 34-year-old Huang Peishi are said to have created fictitious sales contracts and invoices to obtain financing from the banks between July 2017 and December 2018.

Loans were then disbursed to Coastal Oil Singapore, a crude oil products supplier which filed for liquidation in December 2018.

The Hong Kong banks/branches named in court documents are DBS Bank, OCBC, BNP Paribas, Cooperative Rabobank UA, Bank of Communications, HSBC and Standard Chartered Bank.

The only Singapore branch named is China Merchants Bank.

Ong faces 58 charges, 44 of which are for forgery for the purpose of cheating, nine are for conspiracy, and five are for entering into an arrangement with Huang and two other individuals to “facilitate the retention of benefits from criminal conduct”.

During the months in question, cash totalling more than USD 20 million was allegedly transferred from Coastal Oil’s bank account in Singapore to other bank accounts in Hong Kong.

Huang faces 63 charges for similar offences, while investigations into the two other individuals are still ongoing.

Each offence carries a jail term of up to 10 years and a fine.

Ong and Huang were released on bail, and their cases adjourned to 10 July.

Two Singaporeans Charged for Cheating Eight Banks

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