The truth was, he bought the items from retailers here at high prices and was really incurring losses for himself.

He started out small to gain the confidence of those initial buyers and made a name for himself.

More clients sought him out via the Internet and existing clients began to order more.

Deputy Public Prosecutor Paul Chia said Ng knew all along that his 'business' must fail eventually, but he continued to gather more clients as the money transfers kept pouring in.

Ng had duped four overseas buyers from the United States and Britain into believing that he could deliver various parallel imports of electronic products. After they had transferred money into his bank account here, he never delivered the goods.

Between mid-2005 and August 2006 when he was arrested, he received 420 money transfers totalling about $5.7 million in his bank account.

Of this sum, he returned $1.3 million to the frustrated clients to stave off complaints and threats.

He spent $2.4 million to buy game machines locally and used about $8,356 to pay bank charges.

Then he pocketed almost $1.9 million, which remains unaccounted for.

DPP Chia said Ng used his criminal proceeds to buy three cars.

Yesterday, the 38-year-old University of Oregon information science graduate was jailed a total of six years. Ng admitted to 20 charges of cheating, forgery, failing to report change of address, furnishing false information to the Registrar of Companies and Businesses as well as converting criminal proceeds.

Another 111 charges were considered during his sentencing.

When the case was mentioned last month, DPP Chia told the court how Ng used his business, styled SG Gadgets, to cheat unsuspecting merchants from abroad.

He told them he could sell them electronic entertainment products and gaming consoles like the Apple iPod, Sony PlayStation Portable and Microsoft Xbox 360 at prices below market rates because he had a China-based parallel importer.

After his arrest by the Commercial Affairs Department, he lied to Inspector Vikram Rajendra that he was a victim of a scam by one 'Mr Chen' from Shen FC Zhongyutai in China.

He claimed that 'Mr Chen' was his supplier and had cheated him of goods.

He had rubber seals of Shen FC Zhongyutai made and then forged invoices purportedly showing his contracts with 'Mr Chen''.

Defence counsel Abraham Vergis said his client, jailed 18 months in 2002 for dealing in pirated VCDs, owed more than $1 million to one Chen Tze Ling, who owned the VCDs.

After his release, Mr Chen began harassing Ng for full payment. The Chinese national also sent hoodlums to threaten Ng and his family, the lawyer said.

Mr Vergis said Ng then started his legitimate trading business to earn money to pay back Mr Chen.

But DPP Chia, who pressed for a stiff sentence, said Mr Chen was a figment of Ng's imagination.

He pointed out that the offences were highly pre-meditated and that Ng had used the same modus operandi in the United States 10 years ago to deceive his victims. Ng was jailed a year in 1997 for wire fraud.

'He has not learnt his lesson. He has to be taught a lesson,' he added.

elena@sph.com.sg