SINGAPORE - Ng Yu Zhi, the alleged perpetrator of a US$1.1 billion (S$1.5 billion) nickel trading scam, has been declared a bankrupt ahead of a hearing on his criminal case at the State Courts on Tuesday.
A bankruptcy order was made against the 35-year-old on Dec 22, 2022, according to the government gazette published last Friday.
This comes after a bankruptcy application was taken out against Ng shortly after the High Court in May 2022 cleared the way for liquidators to pursue hundreds of millions of dollars allegedly transferred wrongfully into Ng’s personal accounts.
KPMG partner Adrian Chan and Reliance Audit founder SK Lai were appointed bankruptcy trustees and have begun identifying Ng’s assets, a source close to the case said.
Ng and three others were sued in the High Court in November 2021 by the liquidators of Envy Global Trading (EGT), Envy Asset Management (EAM) and Envy Management Holdings in a bid to recover $416.5 million and US$17.7 million from his personal assets.
On top of the lawsuit, Ng, the former managing director of EGT and EAM, is facing 105 criminal charges for his alleged involvement in the scam.
The bankruptcy application was made against Ng probably because the liquidators of the Envy Global companies were unable to recover any meaningful claims from the companies and from him, said Kennedys Legal Solutions partner Robson Lee.
“Making Ng a bankrupt will subject him to the legal regime of the bankruptcy laws and enable the liquidators to go after any voidable personal asset dealings and financial payments that may have been made by him, in order to satisfy any judgment debt,” said Mr Lee.
A voidable personal asset dealing refers to a transaction that is not legally enforceable and can still be recovered by the liquidators, he added.
Court documents state that Ng’s three companies received about $1.09 billion, US$277.1 million and €980,000 (S$1.4 million) in investor funds, supposedly for nickel trading.
Of those sums, $578.4 million, US$192.5 million and €880,000 remain outstanding.
Mr David Chan, Shook Lin & Bok partner and the liquidators’ lawyer, told The Straits Times that a partial summary judgment issued in the High Court on May 20, 2022, gave the liquidators the green light to pursue $416.5 million and US$17.7 million of these amounts. A summary judgment is one entered by a court without a full trial.
In November 2022, the High Court ruled on how the creditors’ proof of debt is to be assessed on an interim basis, the source said.
About 1,000 investors, including business people, lawyers and financiers, sank their money into the scheme, which touted average quarterly gains of 15 per cent.
