Corporate Fraud Case in Singapore

In a shocking case of corporate fraud, a Singaporean man, Alvin Yap Chin Chye, has been sentenced to one year and seven weeks in jail for cheating his employer out of more than $170,000 and for bribing a co-director nearly $40,500. The verdict was handed down on January 23, marking the end of a scandal that shook the logistics industry.

Details of the Fraud

Yap, aged 50, pleaded guilty to multiple charges, including a graft offense and three counts of cheating. His fraudulent schemes netted him over $60,000 in what were described as “secret profits,” although he has since made full restitution. At the time of his deceitful acts, Yap held the position of sales director at Geekplus SG, a subsidiary of Hong Kong-based Geekplus International Company, which specializes in automated logistics solutions.

The Bribery Scheme

Court documents reveal that Yap bribed Lee Mui Sim (also known as Ashelyn), 54, a co-director and co-shareholder of ECT Asia, a consultancy firm. Lee was also serving as the logistics director at Henatenn Holdings, a company involved in the beauty and fragrance industry. Complicating the matter, her husband, Alex Quek Chin Hock, was implicated as a co-director at ECT Asia and allegedly played a role in some of the fraudulent activities.

How It All Started

The scheme began in March 2021 when Lee was instructed by Henatenn’s managing director to find vendors for automating a warehouse. Through her connection to Quek, she learned about Yap and Geekplus SG. It was during negotiations that Quek proposed a corrupt payment disguised as a commission, which was to be shared between him, Yap, and Lee. Unbeknownst to them, the "commission" aligned closely with corrupt practices aimed at favoring Geekplus SG for contract procurement.

Contract Implications

The court heard that Lee subsequently recommended Geekplus SG for a lucrative contract exceeding US$2 million (around S$2.7 million). This contract was signed off on December 31, 2021, with funds routed from Geekplus International’s account under suspicious circumstances. Between April and September 2022, Quek submitted false invoices totaling over $101,000 for non-existent consultancy services, which were approved and paid by Geekplus, creating an elaborate web of financial deceit.

Withdrawal of Funds

On January 4, 2023, Lee facilitated the withdrawal of over $20,000 to share the proceeds of their shady deals with Yap. In another dubious incident, the trio conspired to inflate the price of robots that Geekplus SG was selling, pocketing extra cash once again.

Fictitious Invoices

Adding to the complexity, when Geekplus SG needed storage space for equipment in late 2021, Yap exploited the situation by generating fictitious invoices from ECT Asia to charge Geekplus SG for the space, which was actually provided free of charge by a business associate of Yap. This act of greed resulted in an additional fraudulent payment of $3,000 to ECT Asia.

Ongoing Investigations

As the legal proceedings continue, with Lee and Quek under investigation, Yap has been placed on bail pending the start of his sentence on February 13, 2024. Legal experts say this case highlights the ongoing issues of integrity and corruption within corporate sectors, urging stricter regulations to deter such criminal activities.

Conclusion

Will this trial serve as a wake-up call for businesses everywhere? Only time will tell!