Company director convicted of conspiring to cheat three banks out of over S$2.6m

On April 1, 2022, 52 years old, Tay Kim Yong (“Tay”)the director of A Yong Private Limited (“A Yong”), was found guilty by a court of seven counts of participating in a conspiracy to defraud three banks of more than $2.6 million Singaporeans using fake invoices for purported vegetable purchases from Feb. 1 to Feb. 13. December 2019.

In early 2019, Tay’s business was having cash flow problems when he contacted Tan Teck Tiang (“Thomas”), 54, who is the director of Chiam Joo Seng Towgay Growers & Suppliers Private Limited (“CJS”) ) and 100 Chiam Joo Seng (“100 CJS”), for his help. Tay asked Thomas to allow him to use fake CJS invoices or 100 CJS for A Yong’s alleged purchases from CJC or 100 CJS for loans through A Yong’s factoring agreement with banks. , whenever he needed the funds.

With Thomas’ agreement, Tay had his staff create the invoices, identical to the invoices issued by CJC or 100 CJS. Between February and December 2019, Tay provided his staff with details of alleged vegetable purchases on 23 occasions. On each occasion, after receiving the printed invoices from his staff, Tay would ask Thomas to sign the invoice. Tay was also signing the invoice to falsely indicate receipt of goods. The invoice was then submitted with the loan application to the banks, which resulted in the bank disbursing the loan amount to CJS or 100 CJS bank accounts.

After receiving funds from the banks, Thomas would then make online transfers of the funds or issue a check for the amount in favor of A Yong. Tay would then use the funds received for the operations of his business and to pay his workers.

As a result of the defendant’s actions, OCBC, Maybank and UOB had disbursed loans amounting to $1,466,808.5, $484,051.42 and $727,735.57 respectively.

Tay was first charged in court on January 19, 2022 with 22 counts of conspiracy to cheat under Section 420, read with Section 109, of the Penal Code (Chapter 224, Edition revised 2008), punishable by imprisonment for up to 10 years and a fine. Tay was also charged with one count of conspiracy to cheat under Section 420, read with Section 116, of the same code, which carries a jail term of up to quarter of the longest duration foreseen for this offence. , with the fine provided for that offence, or both.