Billion-dollar money laundering case: Third man jailed, bought luxury apartment with illegal proceeds

SINGAPORE: A third man linked to the S$3 billion (US$2.2 billion) money-laundering probe that led to the arrests of 10 people was sentenced to 13 months' jail on Tuesday (Apr 16).

Wang Baosen, a 32-year-old Chinese national, pleaded guilty to one charge each of possessing almost S$600,000 in illegal proceeds in his wife's bank account and for laundering another S$1.48 million to buy a luxury Park Nova apartment in Tomlinson Road.

Six other charges were considered in sentencing.

Wang was one of 10 people arrested in an islandwide police operation in August 2023 after about two years of the police working on tipoffs about the possible illicit activities by a group of foreign nationals.

More than S$8 million in assets belonging to Wang, in cash, vehicles, property and collectible items, have been seized. These include his assets under his wife's name.

Deputy Public Prosecutor Foo Shi Hao said there was reasonable basis to suspect that the assets came from illegal gambling activities overseas.

Wang has agreed to have 100 per cent of the seized assets forfeited.

The court heard that a sum of about S$600,000 entered Wang's wife's Hongkong and Shanghai Banking Corporation (HSBC) bank account around Jan 19 last year. Wang submitted a forged loan agreement to the bank in support of the transaction – a charge that was taken into consideration. 

Investigations by the Singapore Police Force's Commercial Affairs Department revealed that Wang was involved in illegal remote gambling activities abroad.

During investigations, he was unable to give details or to substantiate his employment history and did not have any known sources of legitimate income, the court heard.

Initially, Wang said the sum of S$600,000 was a repayment of loans. Later, he said it came from his father's sale of overseas property, but could not substantiate his claim.

Around June 2021, Wang's wife entered into an agreement with Shun Tak Cuscaden Residential (STCR) to purchase property.

Around Mar 30, 2022, Wang used S$1.48 million from Hornet Bee International Trading to pay STCR 10 per cent of the purchase price of a property on the 19th floor of Park Nova, a luxury apartment in Tomlinson Road.

Wang was again unable to provide a satisfactory explanation to investigators as to how he came by the money.

Initially, he denied the money came from him, but later claimed he obtained the sum from the purchase and sale of Bitcoin.

The prosecution sought 13 to 15 months' jail, while defence lawyer Favian Kang sought 13 months' jail.

Two other men in the probe were sentenced in early April: Su Wenqiang received 13 months' jail on Apr 2, while Su Haijin was sentenced to 14 months' jail.

The prosecutor, Mr Foo, compared the case with Su Haijin's, as there were more similarities with Wang's case than Su Wenqiang's.

Wang's proceeded offences are under section 55 of the Corruption, Drug Trafficking and Other Serious Crimes (Confiscation of Benefits) Act (CDSA), like Su Haijin's, explained Mr Foo. This is punishable with up to three years' jail and a fine of up to S$150,000.

Su Wenqiang's charges are under Section 54 of the CDSA, a more serious offence with a maximum jail term of up to 10 years.

SENTENCING ARGUMENTS

Mr Foo, who handled the case with fellow prosecutors Michelle Tay and Pavithra Ramkumar, said Su Haijin had more charges taken into consideration.

He also defrauded the Inland Revenue Authority of Singapore (IRAS), while Wang did not. Su Haijin agreed to forfeit only about 90 per cent of his assets, retaining about S$17 million, while Wang forfeited everything, the court heard.

Defence lawyer Mr Kang said his client looked forward to closing this chapter and serving his sentence so he can reunite with his two young daughters and his wife.

"In his mitigation plea, we have not offered his version of events," said the lawyer. "This is not an issue of nonchalance ... (but is) to signal his sincerity in proceedings."

He said Wang was "very unlikely" to reoffend. Mr Kang said the amount of assets seized in Su Haijin's case, about S$170 million, was about 20 times more than the amount seized in Wang's case.

Su Haijin also intentionally resisted lawful arrest.

In sentencing, District Judge James Elisha Lee noted that deterrence was needed to protect Singapore's reputation as a major financial centre.

He said the reasons that draw investors to Singapore are the same ones that draw criminals to launder their proceeds here, so it is incumbent on Singapore to take its anti-money-laundering responsibilities seriously.

He backdated Wang's sentence to his date of remand in mid-August 2023.

SEIZED ASSETS

After the sentencing, the prosecution applied for the seized assets to be forfeited to the state, following deductions in relevant costs.

The vehicles are to be sold and the proceeds forfeited. Other assets in the name of Wang's wife were also willingly surrendered to be forfeited.

The police said in a statement after the hearing that the court had ordered the forfeiture of 100 per cent - about S$6 million - of seized assets linked to Su Wenqiang. 

About 95 per cent of Su Haijin's assets - more than S$165 million - were also forfeited.

Along with Wang's assets, a total of about S$180 million in seized assets will be forfeited to the state.

In response to a CNA query on May 6, an ICA spokesperson said that Wang had been deported to Cambodia that day along with Su Wenqiang. Both men have also been barred from re-entering Singapore.