Billion-dollar money laundering case: 14 months' jail for man who possessed car, S$777,000 from criminal proceeds
Su Baolin was afraid that if his employment pass was not renewed, the dependent passes of his four children and parents would not be renewed.
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SINGAPORE: Another of 10 suspects involved in a S$3 billion (US$2.2 billion) money laundering case was sentenced to 14 months' jail on Monday (Apr 29).
Su Baolin, a 42-year-old Cambodian, had pleaded guilty to three out of 13 charges.
One charge is for engaging in a conspiracy with a Wang Junjie to make false representations to the Inland Revenue of Singapore (IRAS) regarding the true and accurate values of Xinbao Investment Holdings' revenue, gross profits, and trade receivables for the company’s financial year 2021. Su was listed as the director and shareholder of the company.
Another charge is for possessing S$777,220.50 in cash, suspected to be benefits of criminal conduct, at 34A Nassim Road.
He also pleaded guilty to a charge stating that he possessed a car, a white Toyota Alphard Hybrid 2.5SR C-Package CVT purchased for S$332,281.26, suspected also to be benefits from criminal conduct.
The remaining charges were taken into consideration for his sentencing. These include a few counts of refusing to sign a statement and making a false declaration that his spouse, Ma Ning, would be employed as a sales and marketing director by a company which had no intention of employing her.
Su and nine others were arrested in an islandwide police operation against money-laundering offences in August 2023.
More than S$3 billion in assets have been seized or frozen in relation to his case, likely making it one of the largest money laundering operations in the world.
Since April, three men, Wang Baosen, Su Haijin and Su Wenqiang have pleaded guilty and been sentenced to jail terms of between 13 and 14 months.
Su is the fourth to be dealt with by the courts.
SU FORFEITED 90 PER CENT OF ASSETS
Around S$100 million worth of assets, consisting of cash, vehicles, properties, luxury items, and alcohol were seized from Su. After accounting for his liabilities, this amounted to around S$72 million worth of assets. These were believed to be derived from the proceeds of unlawful remote gambling activities overseas.
As part of the plea deal, Su has agreed to have around 90 per cent of his seized assets - amounting to around S$65 million - to be forfeited to the State.
On Aug 15, 2023, $777,220.50 in cash was seized from two safes in Su's residence. He was unable to properly account for them.
Investigations showed that Su punted on online gambling websites between 2020 and 2023. On Dec 2, 2022, he was added into a WhatsApp group chat where links to gambling websites were provided. The lottery was operated by private bookies abroad. Su directed the group to transfer winnings into his cryptocurrency wallet in the form of Tether (USDT), a cryptocurrency.
Su was also operating or supervising online gambling websites between 2019 and 2023 with other individuals overseas. He earned around USDT 4 million (valued at around S$5 million to S$6 million).
As for the car, Su told the authorities that he bought it with proceeds obtained from punting with the same WhatsApp group.
However, this explanation was unsatisfactory to the authorities, which found evidence to suggest that the money came from a cryptocurrency wallet linked to him operating or supervising online gambling websites.
Assets seized from Su Baolin
Bank, Portfolio, and/or Wealth Accounts worth around S$22,475,524
Cash of about S$778,231
Cash in foreign currencies amounting to S$99,000
S$3,094,000 in proceeds from sale of vehicles:
- Toyota Alphard 2.5 CVT Elegance S/R sold for S$105,000
- Ferrari 488 Spider sold for S$718,000
- Toyota Alphard 7-seater 2.5 SC CVT sold for S$215,000
- Rolls Royce Phantom EWB MY21 5-SEATER sold for S$1,550,000
- Bentley Flying Spur V8 4.0 A/T ABS 4WD S/R sold for S$250,000
- Toyota Alphard Hybrid 2.5SR C-PACKAGE CVT sold for S$256,000
Rental income amounting to S$126,018
Donations paid to the Accountant General’s Department of about S$147,800
Cryptocurrencies with an estimated value of S$2,460,939 as of August 2023
Jewellery worth about S$2,096,403
Luxury watches with an estimated value of S$2,130,978
Three bags with an estimated value of S$301,866
482 bottles of assorted liquor with an undetermined value
Country club memberships valued at S$758,300 comprising:
- Sentosa Golf Club at S$550,300
- Tanah Merah Country Club at S$235,000
Properties with a net of loan or mortgage worth S$30,330,400
WANTED PERMANENT RESIDENCY STATUS
Xinbao Investment Holdings was incorporated on Nov 23, 2017. When the company was first registered, its business activity was stated as "Other Holding Companies" and development of other software and programming activities. This was later changed to management consultancy services in 2021.
Between 2020 and 2022, Su conspired with Wang Junjie of LW Business Consultancy to grossly inflate Xinbao's financials to give the false impression that the firm was profitable.
In fact, Xinbao had no business operations in 2020.
Xinbao made investments into legitimate companies from 2021, however the financials submitted to IRAS were fictitious and inflated.
Su submitted the figures to increase his chances of obtaining Singapore permanent residency status. He and Wang Junjie applied for Su and his family to be permanent residents in Singapore on Aug 18, 2022. These applications were eventually not approved.
Su was also worried that if Xinbao did not appear to be profitable, the Ministry of Manpower would not renew his employment pass.
"As the dependent passes of his four children and parents were tied to his employment pass with Xinbao, the accused was also concerned that these dependent passes would not be renewed," said the prosecution.
SENTENCING ARGUMENTS
The prosecution argued for 14 to 16 months’ jail while Su's lawyer Sunil Sudheesan sought 12 months and three weeks' jail.
Similar to the earlier cases of accused persons dealt with before Su, the prosecution accounted for mitigating factors such as Su' early plea of guilt and his voluntary surrender of a majority of his assets in Singapore.
However they argued that general deterrence was still a key sentencing consideration, and cited aggravating factors such as the transnational nature of the offences, the large amounts involved, and Su's abuse of Singapore's financial and social infrastructure.
Mr Sudheesan told the court how his client moved to Singapore with his wife and four young children in 2017. His parents joined him later that year.
"Prior to relocating to Singapore, our client owned multiple businesses abroad. Through these businesses, our client accumulated considerable wealth. While our client dabbled in the gaming industry at certain points in time, our client’s earnings through the gaming industry were relatively minimal," said Mr Sudheesan.
The family had relocated to Singapore as one of the children has autism spectrum disorder, and they felt the child could receive ideal treatment and education here. Singapore's tropical climate and advanced medical treatment was also better for Su's heart condition - a congenital heart disease that results in less oxygen being pumped to the body.
Mr Sudheesan added that his client was assessed to be at high risk of gastric cancer.
"The authorities were aware from August 2023 of the accused person's cancer risk. Eight months and two weeks later, the cancer risk is still present," he said, adding that a biopsy was only done in April, with the results not yet out.
District Judge Ow Yong Tuck Leong said that the court needed to send a strong signal that such activities will not be tolerated in Singapore. He backdated the sentence to Su's date of arrest on Aug 15, 2023.
For possessing property suspected of being derived from criminal conduct, Su could have been jailed up to three years' jail, or a fined up to S$150,000, or both.
For making a false representation, Su could have been jailed for up to 20 years, or fined, or both.
