Company director cheated 3 banks of more than S$2.6 million using fake invoices for vegetable purchases
SINGAPORE: A company director was jailed on Monday (Apr 18) after he was found guilty of cheating three banks of more than S$2.6 million.
Tay Kim Yong had done so using fake invoices for the purported purchases of vegetables from February to December 2019, said the police in a news release.
According to court documents, Tay was sentenced to 30 months' jail on Monday.
The 52-year-old was the director of A Yong Private Limited, a wholesale company of fruits and vegetables.
The police said that Tay's company was experiencing cash flow problems sometime in early 2019. This prompted him to approach a man identified as Tan Teck Tiang for assistance.
Tan, 54, was the director of 100 Chiam Joo Seng and Chiam Joo Seng Towgay Growers & Suppliers.
Tay requested that Tan allowed him to use fake Chiam Joo Seng or 100 Chiam Joo Seng invoices for A Yong's purported purchases from the two companies.
Tay's objective was to obtain loans via A Yong's factoring agreement with banks whenever he needed the funds, said the police.
With Tan's agreement, Tay directed his employees to create the invoices, which were similar to the ones issued by Chiam Joo Seng or 100 Chiam Joo Seng.
Between February and December 2019, Tay provided his staff members with the details of the purported vegetable purchases on 23 occasions, said the police.
On each occasion, after receiving the printed invoices from his workers, Tay would get Tan to endorse his signature on them.
He would also sign the invoice to "falsely indicate receipt of the goods", the police added.
The invoice was then submitted together with the loan applications to the banks, which resulted in the banks disbursing the loan amount to Tan's two companies.
Upon receiving the funds from the banks, Tan would then make online transfers of the funds or issue a cheque for the amount in favour of A Yong. Tay would then use the funds received for his company operations and to pay his workers.
As a result of Tay's actions, OCBC, Maybank and UOB had disbursed loans amounting to S$1,466,808.5, S$484,051.42 and S$727,735.57, respectively.
The police said Tay was charged in court on Jan 19 this year with 23 counts of engaging in a conspiracy to cheat and abetment under the Penal Code.
On Apr 1, he was convicted of seven counts of engaging in a conspiracy to cheat.
Information from the Accounting and Corporate Regulatory Authority (ACRA) portal on Monday showed that A Yong is currently in liquidation.