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AsiaOne
6 minutes ago
- AsiaOne
Liquidators score victory to recoup over $900m from alleged scammer Ng Yu Zhi's associates, Singapore News
SINGAPORE — The liquidators for three companies of Ng Yu Zhi, the alleged nickel-trading fraudster at the centre of a $1.5 billion nickel trading scam, scored a legal victory on July 29 to recover more than $900 million from nine former directors and employees for their role in Singapore's biggest Ponzi scheme. In 2021, the liquidators of Envy Asset Management (EAM), Envy Global Trading (EGT) and Envy Management Holdings (EMH) sued Ng, former directors Lee Si Ye and Ju Xiao, and former employee Cheong Ming Feng. Court documents state that Ng's three companies received about $1.09 billion, US$277.2 million (S$357 million) and €980,000 (S$1.4 million) in investor funds, supposedly for nickel trading. Of those sums, $593 million, US$192.2 million and €880,000 remain outstanding to investors. In a 180-page judgment issued on July 29, the liquidators, who are represented by lawyers David Chan, Daryl Fong and Lin Ruizi of Shook Lin & Bok, were awarded damages after Ms Lee, Mr Ju and Mr Cheong were found to have breached their duties. They also received damages for fraudulent trading by Mr Ju. The trio were also ordered to pay back about $27 million in commission payments, profit sharing, bonuses, CPF payments, directors' fees and dividends. The High Court, however, ruled that the July 29 judgment is "not binding" on Ng, who was made bankrupt in December 2022. Civil proceedings against the former managing director of EGT and EAM stopped as a result. Ng's criminal trial on 42 charges ended on July 7 after he opted not to take the stand. He had faced a total of 108 charges over offences including cheating, forgery, fraudulent trading, money laundering and criminal breach of trust. In awarding damages to the liquidators, High Court Judicial Commissioner Mohamed Faizal found that the nickel trading scheme did not exist and none of the investors' monies were used to buy nickel from Poseidon Nickel. This is the Australian firm that Ng claimed to have bought nickel from. Instead, the funds were transferred to Ng through Envy Asset Management Trading, paid as directors' fees to Ng and Ms Lee, and as commission payments, or profit sharing fees to the defendants and other employees. The funds were also used to pay referral fees or "profits" in excess of the invested principal to investors; and transferred or paid to other companies owned by Ng or his Envy companies, the judicial commissioner found. The High Court also found that the Envy companies were "hopelessly insolvent and unable to pay their debts. Neither EGT nor EMH had any legitimate, revenue-generating business, and there was no other meaningful business undertaken by the Envy companies". There was also "compelling evidence of the shocking level of ineptitude and nonchalance" on the part of Ms Lee, who allegedly helped Ng cover up details of fraudulent transfers of $416.5 million and US$17.7 million to his own bank accounts under false pretences, according to the ruling. She was found to be "grossly negligent" but "did not have actual knowledge" of the Ponzi scheme as she and her own family members and loved ones also invested in the scheme, the judicial commissioner pointed out. As for Mr Ju, the High Court found that he was in breach of his director's duties and liable for fraudulent trading, among other things. "That he was willing to forge documents, fraudulently change the paid-up capital sums for EGT and mislead investors... spoke to his entire approach to his role as a director and employee of the company. These actions also reflect his willingness to be complicit in whatever he was asked to do. This made a mockery of his duties as a director of EGT," the judge said. Mr Cheong, the former employee, knew that he was creating forgeries, and also became aware that these were being circulated to both internal employees and external investors, but the High Court found that he did not know that such actions were being done to prop up a sham scheme. For one thing, Mr Cheong was "not particularly sophisticated and possessed a rather rudimentary understanding of the business". His own investments "started even before he joined the Envy companies and he had assisted some of his friends to do the same, which suggests that he himself bought into the logic of the purported nickel trading", the judicial commissioner said. Regardless of whether Ms Lee, Mr Ju or Mr Cheong had knowledge of the Ponzi scheme, they were still ordered to return most of the monies they had received from the Envy companies. In a separate 62-page judgment released on July 29, the High Court ordered six other former employees of the Envy companies to cough up more than $42 million in fictitious profits, commission payments, profit sharing and referral fees paid to them. This award is subject to a deduction of income tax payments made by these six employees. Former employees Lau Lee Sheng, Benjamin Teo Wei Wen, Shen Xuhuai, Koh Hong Jie (Xu Hongjie), Guo Yujia and Jordan Chua Wei Jian were named defendants in this suit brought by the liquidators. The High Court allowed the liquidators to claw back monies paid to them after finding that the Envy companies "were never under any obligation to pay the commission payments and profit sharing payments to the defendants because the (companies) never made any actual profit". [[nid:720725]] This article was first published in The Straits Times . Permission required for reproduction.
Business Times
6 minutes ago
- Business Times
Trump's trade deals come with few details to flesh out big numbers
[WASHINGTON] US President Donald Trump's flurry of trade deal announcements are so far proving light on detail, with key aspects still under negotiation, partners giving mixed signals about what they signed up for, and big numbers shrinking under scrutiny. Trump touted landmark agreements with Japan and the European Union in the past week, adding to pacts with a handful of smaller economies. An extension of the US-China tariff truce is also in the works. The administration is taking a victory lap, claiming vindication for Trump's bargaining style as he prepares a raft of import-tax hikes before an Aug 1 deadline. 'I think the trade deals are working out very well, hopefully for everybody, but for the United States, they are very, very good,' the president said on Tuesday (Jul 29) while flying home to Washington from Scotland. Yet while the scale of America's tariff wall is becoming clearer, other details remain fuzzy in the extreme – especially investment promised by counterparties, which on paper exceeds US$1 trillion for the EU and Japan deals alone. For Trump, these capital pledges are evidence that his protectionist agenda is on course to do what he promised it would: revive American manufacturing and create jobs. If actual investment falls short of the big numbers, tariffs could end up boosting revenue for the government, and costs for US consumers and companies, while failing to achieve those loftier goals. 'Signing bonus' Trump's deal with Japan includes a US$550 billion fund that the US called a 'foreign investment commitment', and the president said amounts to 'a sort of signing bonus'. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up But Japanese officials said only 1 per cent or 2 per cent of the total, a maximum US$11 billion, would be investment, with the rest essentially made up of loans. And they said that the 90 to 10 per cent profit split in America's favour, highlighted by Trump's team, only applies to that smaller investment portion. At a minimum, the two countries are describing the accord differently, raising the potential for future snags. 'It's not that US$550 billion in cash will be sent to the US,' Japan's top trade negotiator Ryosei Akazawa said. But Commerce Secretary Howard Lutnick put it this way, speaking last week to Fox News: 'This is literally the Japanese government giving Donald Trump US$550 billion.' Lutnick said that Trump would increase tariffs again if Japan reneged on the fund. As for the EU deal, he acknowledged on Tuesday that there's 'plenty of horse-trading left to do'. The EU pledged US$600 billion in new investments. European officials say the target is just an aggregate of promises by companies, and the bloc cannot commit to a binding target. Neither side has spelt out the contents. 'Basically they are going to build the factories,' Lutnick told Fox News on Monday. 'All the car companies committed they're going to build the factories. The pharmaceutical companies have gone out and said they're going to build these factories.' The EU also promised energy purchases from the US worth US$750 billion over the next three years – roughly triple the current pace. That target could strain the capacity of American exporters as well as European importers, some analysts say. Aside from the tariff rates, much of the recent deals consist of 'vague promises with large numbers attached that don't have any mechanisms for follow-through,' said Alex Jacquez, who served on the Biden administration's National Economic Council. 'Nobody seems to believe that these checks as written, are actually going to cash.' Russia wildcard There's more clarity around the tariff numbers, though they are still in flux too. Trump will raise duties on most imports from Japan and the EU to 15 per cent from the current 10 per cent. Those partners will get a partial waiver on certain industry-specific US tariffs that carry higher rates worldwide, such as for automobiles, but not on others, such as steel and aluminium, where talks on an exemption involving quotas continue. The revised auto tariffs on Japan and the EU are not yet finalised but are expected to take effect on Aug 1, according to a White House official. Trump says there are more of these sectoral tariffs to come, and some of his recent deals may cause confusion by preempting yet-to-be-announced numbers. For instance, he pledged 15 per cent tariffs for the EU on semiconductors and pharmaceuticals, two sectors where rates have not been finalised. A senior US official also said that Trump agreed to grant Japan whatever the lowest rate is for those two categories, but that commitment is not in the public US fact sheet. A White House official said that the lower 15 per cent rates for pharmaceuticals and chips would only kick in once the higher levies Trump has threatened under Section 232 of the Trade Expansion Act take effect. 'Always willing' Other already-announced deals have raised questions too, like the one with Vietnam earlier this month, which appears to have surprised officials in Hanoi with a tariff of 20 per cent, higher than they were said to have agreed to. US and Chinese negotiators, after two days of talks in Sweden this week, said that they are on track to extend the tariff truce between the two countries. A wildcard there is Trump's threat to impose new charges on countries that buy energy from Russia. China is the biggest buyer of Russian oil, followed by India, which is still embroiled in talks with the US. The fate of the two biggest US trade partners also seems to be headed down to the wire. Trump has downplayed the chance of a deal with Canada, though Canadian Prime Minister Mark Carney shrugged that off. Both Canada and Mexico face tariff hikes this week, but they will not apply across the board. Goods compliant with the USMCA trade pact are poised to maintain their current exemption, a major relief for both countries. Some critics say the administration's deal-by-deal approach to tariff rates risks ending up as a patchwork that lacks coherence. US auto companies, for example, objected to the Japan agreement, saying imported cars that do not have any US content are set to be taxed less than North American-built models that do. For all the unresolved questions, the administration is casting Aug 1 as something of a milestone in setting rates after months of threats. It's just not likely to be the final word in Trump's rolling dealmaking. Several more pacts are very close, and tariff rates will either be agreed or imposed by Aug 1, Kevin Hassett, head of the White House National Economic Council, said on Tuesday. But even after that, 'people can continue to negotiate,' he said. 'The president is always willing to negotiate.' BLOOMBERG
Straits Times
36 minutes ago
- Straits Times
Trump says India may pay 20-25% tariff but nothing finalised
Sign up now: Get ST's newsletters delivered to your inbox India has expressed willingness to offer zero tariffs on some goods such as auto components and pharmaceuticals. WASHINGTON – President Donald Trump said that India may be hit with a tariff rate of 20 per cent to 25 per cent but cautioned the final levy had still not been finalised as the two countries negotiate on a trade deal ahead of an Aug 1 deadline. 'I think so,' he told reporters on July 29 when asked if that was a possible tariff rate for New Delhi. His comments came before the start of the business day in India and there has been no official response yet from Prime Minister Narendra Modi's government. 'India has been a good friend, but India has charged basically more tariffs than almost any other country,' Mr Trump said aboard Air Force One as he returned to Washington from a five-day visit to Scotland. 'You just can't do that.' The president was commenting ahead of an Aug 1 deadline when a slew of so-called reciprocal tariffs are set to take effect on dozens of trading partners. Mr Trump announced higher levies in April, before pausing those tariffs at a reduced 10 per cent rate to allow time for negotiations. Despite an extended deadline, Mr Trump has only secured a handful of deals. India has conveyed to the Trump administration the red lines it won't breach in finalising an agreement, officials familiar with the matter said in July. New Delhi won't allow the US to export genetically modified crops to the country, and is unwilling to open widely its dairy and automobile sectors, the people said, asking not to be identified because the discussions are private. India has expressed willingness to offer zero tariffs on some goods such as auto components and pharmaceuticals. Top stories Swipe. Select. Stay informed. World Japan issues tsunami warning after 8.7-magnitude earthquake strikes off Russia Business MAS keeps Singapore dollar policy unchanged amid US tariff risks to economy Singapore Grace Fu apologises for Tanjong Katong sinkhole, says road may stay closed for a few more days Business No clarity yet on baseline or pharmaceutical tariffs with US: DPM Gan Opinion Nobel Prize? Maybe not, but give Asean credit for Cambodia-Thailand ceasefire Asia Fragile Cambodia-Thailand truce faces challenges on day one Business Cathay Cineplexes ropes in restructuring specialist as more payment demands pile up Singapore Facts and myths intersect at the National Museum's new glass rotunda installation Mr Modi's government has taken a more cautious stance as it faces pressure to protect India's politically sensitive farm sector. Millions depend on agriculture for their livelihoods and farmers form a key voting bloc for Mr Modi's party, which faces a crucial state election in the coming months. US Trade Representative Jamieson Greer said July 28 that the US needed more time for talks with India to gauge the country's willingness to open its market more to American exports. Reuters reported earlier on July 29 that New Delhi is bracing for higher tariffs likely between 20 per cent and 25 per cent. India and the US have already signed terms of reference for a bilateral trade deal and have been negotiating an interim agreement that New Delhi hoped would give it a reprieve from higher US import duties. Mr Trump has separately threatened to place 'secondary tariffs' on Russia, a move that would likely hit countries like India and China that buy its oil. Bloomberg
