Jail for man who agreed to be director of shell firms later used for million-dollar scam proceeds

SINGAPORE – Tempted by fast cash, a man agreed to be a “dummy director” of multiple companies, and one of them later processed US$1 million (S$1.3 million) in scam proceeds through its bank account.

Tan Yew Sin also tried to deposit a cashier’s order for over $7 million in scam proceeds for another company.

Both firms – Accord Technology and Huachang Trading – were shell companies with no legitimate businesses, the court heard.

On Nov 10, Tan, 24, a Singaporean, was sentenced to two years and three months’ jail after he pleaded guilty to offences including those linked to the benefits of criminal conduct.

Deputy Public Prosecutor Grace Teo told the court that Tan had earlier responded to a job advertisement on messaging platform Telegram in May 2021.

He was then directed to an unidentified person known only as “Lerex”, who offered him $5,000 to become a nominee director for “people from overseas who want to do business in Singapore”.

Without asking for more details, Tan accepted the offer and shared information such as his identity card number and full name with Lerex.

On Aug 30 that year, Tan was appointed as the sole local director of two firms, including Accord Technology. He then received $5,000 in total for agreeing to be their nominee director.

Tan also allowed Lerex, whom he had never met, to open two corporate bank accounts in his name on Accord Technology’s behalf.

The DPP said that Tan, who did not access these accounts, later passed Lerex the necessary log-in details linked to them.

She added: “He was concerned that Lerex may be using the accounts for illegal activities but accepted Lerex’s assurance that there was nothing illegal about it without conducting checks of his own.”

On Sept 24, 2021, a representative of a company called S&B Engineers and Constructors lodged a complaint in the United States with the country’s Federal Bureau of Investigation (FBI). The complaint alleged that the firm’s client, Bia Energy Operating Company, had fallen victim to a business e-mail compromise scam.

As a result, US$1 million was sent from its bank account in the US to one belonging to Accord Technology.

Four days later, the FBI alerted Singapore’s Commercial Affairs Department (CAD), which started its probe into Accord Technology.

Investigations revealed that the Accord Technology’s bank account received the US$1 million on Sept 23, 2021. That same day, most of the funds were transferred to bank accounts in China in nine transactions.

Three of the transactions were successfully recalled, and part of the outgoing funds were recovered.

Accord Technology’s bank account was seized with a balance of more than US$350,000 and over $700. Most of the money was later returned to Bia Energy Operating Company.

Separately, Lerex also offered Tan an additional $10,000 to help bank in a cheque for Huachang Trading.

DPP Teo said: “The accused suspected that Lerex may be using different companies and their bank accounts to facilitate criminal activity. However, he accepted the offer because he wanted quick cash.”

Lerex then said that Tan had to become the director of Huachang Trading to bank in the cheque. Court documents stated that Tan agreed as he was tempted by the $10,000 that was offered. He was then appointed as the sole local director of Huachang Trading on Sept 21, 2021.

He also shared with Lerex his personal information, and the company’s bank account was opened soon after in Tan’s name.

Tan later took instructions from Lerex on Oct 6 that year and collected from an unknown person a cashier’s order for a sum of over $7 million in another bank account belonging to Huachang Trading.

DPP Teo said: “When the accused saw how large the sum involved was, he felt scared and asked Lerex whether the money was ‘clean’.

“Lerex assured him that it was. The accused accepted Lerex’s assurance without further questions.”

Tan later tried but failed to bank in the cashier’s order at different bank branches. According to court documents, he claimed that he returned the order to an unknown person after his third failed attempt.

This unknown person later successfully deposited it into Huachang Trading’s bank account, which was linked to Tan.

On Oct 6, 2021, a man lodged a police report on behalf of The Bank of New York Mellon (BNYM), stating that it needed help recalling funds from a fraudulent wire transfer involving more than €5.2 million (S$7.8 million).

Investigations revealed that the wire transfer was initiated from BNYM’s account into one of Huachang Trading’s bank accounts as a result of an online impersonation scam involving BNYM’s client, the University of Illinois (UOI).

The DPP said: “An unknown person named ‘Bradley Bates’ had falsely presented himself as an employee of UOI to BNYM, and informed BNYM that he was seeking... services for UOI.

“Bradley Bates opened several bank accounts with BNYM in UOI’s name, withdrew from a credit facility under BNYM in UOI’s name, and made wire transfers to multiple overseas beneficiaries.”

On Oct 7, 2021, CAD started its investigation into Huachang Trading and instructed a bank to stop processing the cashier’s order.

Among other things, CAD later seized more than $7 million which was directly traceable to the order. The money was returned to BNYM, which suffered a loss of nearly US$620,000.

In the end, Tan did not receive the promised $10,000 and to date, the police have not been able to identify Lerex.

Tan was arrested on June 26, 2024.

His bail has been set at $40,000, and he is expected to begin serving his sentence on Nov 24.