SINGAPORE - A business owner promised investors returns of up to 70 per cent each year if they put money into his food venture.

Alvin Goh Shu Min, 41, cheated nine investors aged between 40 and 69 of about $160,000, which he used for his personal expenses.

To pay them back, he lied to a remittance agent that he wanted to exchange foreign currency worth S$260,000 but instead ran off with the money when the agent was distracted by a phone call.

On Wednesday (Dec 22), Goh pleaded guilty to three charges that include misappropriating money and criminal breach of trust.

Another five charges that include similar offences were taken into consideration.

His sentencing was adjourned to February next year.

The court heard that between 2017 and 2018, Goh advertised online for investors willing to pump in at least $20,000 to open a franchised outlet of fArt tArtz cafe, Deputy Public Prosecutor Melina Chew told the court.

Goh told nine interested people that the start-up capital needed was up to $250,000 and the return on investment would be between 35 per cent to 70 per cent each year.

They each transferred around $20,000 to bank accounts linked to Goh and that added up to $160,000 by the end of 2018. Goh quickly withdrew each deposit, and the bank accounts were depleted by the year end.

DPP Chew said Goh admitted that the money was "dishonestly misappropriated" to cover the expenses of his other businesses and his own personal expenses.

"As such, the monies were never applied towards the business venture, and the business venture never came into fruition."

The investors demanded their money back when in December 2018, Goh asked them to make an urgent top-up for him to proceed with signing a lease agreement for the franchised cafe outlet.

He eventually stopped replying and several partners reported the matter to the police in January 2019. No restitution had been made, the court heard.

To pay off his creditors, Goh crafted a plan to steal about $260,000 in cash from a freelance remittance agent for AAA Money on Feb 3, 2019.

He told Mr Wong Ching Hai, 70, to meet him at a condominium unit he had rented with the money and claimed a contact, who wanted to buy a local restaurant, will exchange the corresponding amount in yuan.

Mr Wong agreed and turned up with two bags filled with $50 notes.

But when he was distracted by a phone call, Goh fled with the money with the help of a getaway driver he had arranged.

Mr Wong called the police, who arrested Goh at a hotel room the next day. DPP Chew said $224,550 was recovered.

Goh admitted that the arrangement he had told Mr Wong was a lie and he had done so only to steal the money and pay back his investors.

Seeking a jail term of 38 months, DPP Chew said: "The offence was highly premeditated. Goh concocted a plan to deceive others to give him money and pay off investors from another business venture who demanded the money."

Defence lawyer K. Mathialahan, who pleaded for a sentence of 28 months' jail, said Goh continued to accept money from the nine investors as he was led to believe a large investment from another partner was on its way.

The judge allowed the sentencing to be deferred and to allow Goh to settle his personal and business matters.