Former CEO and directors of company linked to S$1.5b nickel investment fraud case charged

SINGAPORE: The former CEO and directors of a company linked to an alleged billion-dollar nickel investment fraud case were charged on Thursday (Mar 7), said the Monetary Authority of Singapore (MAS). 

Shim Wai Han, Doo Chun Ki and Tan Kay Siong held several top positions in Envysion Wealth Management, currently known as Hui Xun Asset Management.

Envysion was a holder of a capital markets services licence for fund management. The company was the manager of Envysion Global Investments VCC, which established the Envysion Commodity Strategy Fund. 

The fund was used to invest in Envy Global Trading, whose former managing director Ng Yu Zhi is at the centre of an alleged billion-dollar nickel investment fraud case.

Shim is the former CEO of Envysion Wealth, while Doo is the former chief investment officer and Tan is the former chief operating officer and chief compliance officer.

MAS’ investigations found that Shim, Doo and Tan had allegedly failed to put in place an appropriate risk management framework for the assets that were managed by the fund. They each face one charge.

They were also each charged with failing to mitigate conflicts of interest related to loans received by Shim and the referral fees received by Envysion for investing in Envy Global Trading through the fund. 

Shim also faces one charge of making false statements when providing a financial advisory service, and two charges of forwarding to Ng emails between MAS and Envysion.

If found guilty of failing to put in place an appropriate risk management framework for the fund, Shim, Doo and Tan may each face a fine of up to S$50,000 (US$37,400).

They may also each be fined up to S$50,000 for failing to mitigate conflicts of interest, if convicted.

Those who make false statements when providing a financial advisory service may be jailed for up to 12 months, fined up to S$50,000, or both.

If found guilty of forwarding to Ng emails between MAS and Envysion, Shim may be jailed for up to two years and fined up to S$2,000 per charge.

NICKEL INVESTMENT SCAM

Ng is at the centre of an alleged billion-dollar nickel investment fraud case.

He was first charged in March 2021 with cheating and fraudulent trading, and now faces 106 charges in total.

Among his charges, the 36-year-old is accused of cheating Envysion and Shim of more than S$48 million between September 2020 and January 2021.

As part of the scheme, he allegedly raised money from investors to purchase nickel, promising varying returns when the companies involved did not purchase any nickel.

The scheme allegedly cheated investors of about US$1.1 billion and has already landed other men in jail for their attempts to help Ng flee Singapore.