THE former chief executive officer (CEO) and two former directors of a fund manager linked to one of Singapore’s largest nickel trading fraud case were slapped with various charges on Thursday (Mar 7).
The charges were for failing to put in place an appropriate risk management framework for management of funds, as well as failing to mitigate conflicts of interest related to loans and referral fees received by the company and its CEO.
Shim Wai Han, the former CEO of Envysion Wealth Management; Doo Chun Ki, Envysion’s former chief investment officer; and Tan Kay Siong, the company’s former chief operating officer and chief compliance officer were charged for various offences under the Securities and Futures Act and the Securities and Futures (Licensing and Conduct of Business) Regulations, said the Monetary Authority of Singapore (MAS).
Envysion, which is currently known as Hui Xun Asset Management, was a holder of a capital markets services licence for fund management and manager of the Envysion Global Investments VCC which established the Envysion Commodity Strategy Fund.
The fund was invested in Envy Global Trading, one of two companies involved in a nickel trading scheme. The director of both companies, Ng Yu Zhi, was at the centre of a US$1.1 billion scam deemed as one of Singapore’s largest investment fraud schemes.
Shim, Doo and Tan were charged with one count each of conniving in Envysion’s failure to put in place an appropriate risk management framework for the fund. They also face one count each for conniving in Envysion’s failure to mitigate conflicts of interest arising from the management of the assets in respect of the Fund.
If convicted, they face a fine of up to S$50,000 each for the first charge, and another fine of up to S$50,000 each for the second.
Shim, the former CEO, faces additional charges – one count for making false statements in connection with the provision of a financial advisory service under the Financial Advisers Act, and two counts under the Official Secrets Act for forwarding email correspondence between MAS and Envysion to Ng, the former director of Envy.
If Shim is found guilty of making false statements under the Financial Advisers Act, she faces jail time of up to a year or a fine of up to S$50,000 or both.
If convicted under the Official Secrets Act, she faces imprisonment of up to two years and a fine of up to S$2,000 for each charge.
