Reformative training for young man whose firm’s bank account received nearly $2m in crime proceeds

SINGAPORE – A teenager who was promised up to $30,000 in profits agreed to a request by an acquaintance to set up a company whose bank account was later used to receive some US$1.5 million (S$1.99 million) in crime proceeds.

Ali Kuthubudeen, now 21, was ordered to undergo reformative training for at least a year on Aug 2 after he pleaded guilty to four charges, including failing to use reasonable diligence as a director at Deen’s Watches.

Young offenders sent for reformative training are detained in a centre to observe a strict regimen that can include foot drills and counselling.

In March, the company was

convicted of one count of dealing with the proceeds of criminal activities

and fined $50,000.

Ali got acquainted with the person who eventually asked him to start a company when they were in the Singapore Boys’ Home at an earlier time.

At an unspecified date, the acquaintance asked him to set up a watch company, promising between $20,000 and $30,000 in profits.

Ali, who believed him as he was wearing expensive jewellery complied, and Deen’s Watches was incorporated in January 2022.

Ali did so with help from this acquaintance and another person, known only as “Gibson”.

Deputy Public Prosecutor Tung Shou Pin told the court that Ali gave them his Singpass login credentials and a photocopy of his identity card.

After that, the pair opened bank accounts using Ali’s particulars.

The prosecutor said: “(Ali allowed the pair) to log into the corporate accounts using his Singpass. However, he changed the Singpass password a few hours later, as he was afraid of (them) using his Singpass for other purposes.”

As a director at Deen’s Watches, Ali knew that he had to take care of the company’s affairs. But he did not monitor its business activities or financial transactions.

DPP Tung added: “The accused claimed that he had asked (the acquaintance) for updates on Deen’s Watches’ business matters but did not pursue it further when (he) ignored his requests for updates.”

Meanwhile, a fraudster, who pretended to be from one Decheng Capital Global Life Sciences Fund, sent fraudulent instructions asking for US$4 million to be transferred from Decheng’s bank account to another account belonging to a company called Binary Luxe.

The US$4 million was transferred to Binary Luxe’s bank account. Deen’s Watches later received in its account nearly US$1.5 million from that amount in April 2022.

Most of the remaining cash was transferred to bank accounts in China.

In an unrelated case, Ali came across a text message advertisement for loan services in late June 2022. He decided to borrow $1,000 from a loan shark whom he addressed as “Brother”.

The latter first loaned Ali $400, asking for repayment of $500 within three days. Ali successfully did so.

Brother then loaned him $1,000, requiring the youth to repay $1,300 within a week. When Ali failed to do so, Brother harassed him, including calling his workplace to accuse him of drug trafficking.

Ali eventually repaid the $1,300 but Brother demanded a further $300.

The DPP said: “The accused could not pay Brother, who began harassing the accused at his girlfriend’s address, where he was staying at the time.

“Brother then offered to let the accused work his debt off by harassing debtors. The accused accepted.”

On July 15, 2022, Ali performed a harassment job involving a victim, who was one of Brother’s borrowers.

Among other things, Ali pasted debtor notes near the victim’s home and took a video of her 16-year-old son.

The victim later lodged a police report but Brother remains unidentified.