The Commercial Affairs Department (CAD) is investigating Ju Sheng International Consultancy Services for possible breaches of licensing requirements under the Securities and Futures Act, and whether investors were defrauded.
The company provides consultancy services for derivative trading. Two investment schemes that it offered to members of the public involved providing leveraged foreign exchange trading services.
Leveraged foreign exchange trading is regulated by the Monetary Authority of Singapore and can only be conducted by those with a capital markets services licence, unless they are exempted. The firm is not exempted and does not hold the requisite licence, police said in a press statement yesterday.
Police also said the company had already defaulted on payments to some investors when the CAD started its investigations.
The CAD arrested the company's 49-year-old director last Friday to assist in the probe.
Police have advised anyone who invested monies with the company to lodge a report, and to bring along a copy of the documents showing transactions with the firm. These can include agreements signed, and papers on payments made to and received from the company.
THE BUSINESS TIMES