Overview of the Case

In a shocking tale of deceit that has left more than 2,000 investors reeling, Leong Koon Wah, the former managing director of Singliworld, was sentenced on January 3 to an eye-watering 10 years and six months in prison for orchestrating a fraudulent investment scheme.

This scheme, which promised investors astonishing monthly returns of up to 13%, resulted in over $13.7 million (US$10 million) in losses.

Actions of the Defendants

Leong, 51, attracted these unsuspecting investors by claiming that their funds would be utilized by so-called “professional traders” engaging in foreign exchange trading through companies like Triumph Global and Union Markets.

Investigations later revealed these companies lacked the proper licenses to conduct such operations, and no actual trading took place.

Instead, the scheme was nothing more than a façade, designed to lead investors to believe their money was being put to legitimate use.

Impact on Investors

The total amount collected from investors exceeded US$21 million, with numerous investors not only from Singapore but also from other countries falling victim to this elaborate ruse.

Among the unfortunate investors were individuals who fought to reclaim their savings, which they believed were secure thanks to the lofty promises made by Leong and his associate, Ng Kuan Chuan.

Sentencing of the Defendants

Ng, 38, who served as a director at both Triumph Global and Singliworld HK, also received a substantial sentence of seven years and six months in prison for his role in this fraudulent operation.

He was additionally ordered to pay a fine of $300,000, with an added six months in jail if he fails to settle the amount.

Details Uncovered During Trial

During the 88-day trial, it was revealed that Leong’s financial maneuvers had reaped him incredible profits despite his low initial investment of just $1,000—allegedly he accrued approximately $3.1 million through various multi-level marketing strategies.

Disturbingly, many of the accounts involved in this scheme were under the names of family members, including Leong’s wife, who had no direct involvement in investments.

Judicial Remarks and Observations

As the court proceedings unfolded, District Judge Soh Tze Bian pointed out the scheme's blatant fraudulent nature, stating that it was a "well-structured pyramid scheme" that preyed upon the trust of investors.

The judge condemned the duo's exploitation of trusting individuals and highlighted the combination of false promises, manipulation, and ultimately, the scheme's unsustainable financial practices.

Background of the Scheme

Leong and Ng’s activities dated back to March 2014, when they started aggressively marketing the Singliforex scheme, leading investors to open trading accounts exclusively with Triumph Global and later Union Markets.

This effectively locked them out of their accounts and denied any opportunity to engage in personal trading.

Conclusion and Warnings for Investors

Despite their claims, Judge Soh noted that the duo's operations had no legitimate foundation, revealing that they were operating without the necessary licenses required by the Monetary Authority of Singapore for leveraged foreign exchange trading.

Interestingly, in a devastating twist, Leong's network was incentivized to recruit new members, perpetuating the cycle of deceit as more people were drawn into the scheme.

With Leong now facing a hefty penalty in addition to his prison sentence, the fallout from this scandal serves as a harsh reminder for investors to remain vigilant and informed before committing their hard-earned money to investment opportunities.

As for Ng, he plans to appeal his conviction and maintain his innocence, but in the eyes of the law, both men stand as stark warnings against the dangers of investment fraud.

Witnessing the aftermath of financial disasters like Singliforex reminds us all to question the allure of seemingly guaranteed returns and to always conduct thorough research when it comes to our finances.