A Deceptive Scheme Unveiled

In a shocking case emerging from Singapore, Ong Kai Min, a 42-year-old director of the Singapore Index Trading Institute (SITI), has admitted to orchestrating a massive fraud that has left multiple victims out of pocket to the tune of over $4.6 million. This gripping tale of deceit involves a faux AI-powered trading investment scheme that lured individuals with promises of guaranteed returns.

The Illusion of AI-Powered Returns

Ong's scheme, which unfolded between May 2019 and March 2021, boasted highly lucrative returns from automated trading managed by artificial intelligence programs—claims that turned out to be unfounded. Investors were seduced by promises of monthly returns between 2% and an audacious 10%, but in reality, no trading occurred at all with their funds.

Key Charges and Court Proceedings

In a recent court appearance, Ong pleaded guilty to eight counts of cheating involving eight distinct investors, amounting to approximately $537,000, in addition to a staggering $3.96 million. Pending his sentencing, he faces further scrutiny with sixteen additional charges related to remaining investors' losses.

The Operations of a Fraudulent Empire

Operating under several names—SITI, Bookhero, OKM Holdings, and a firm based in Vanuatu, C7 Traders Vanuatu—Ong spun a web of deception. Prospective investors were drawn into seminars where he touted SITI's AI trading programs, stating that trades would happen in their personal accounts through an independent broker, C7TVL. However, it was revealed that Ong controlled both SITI and C7TVL, leading to an intricate lie that benefited no one but himself.

Unraveling the Lies

Prosecutors have labeled Ong's promises as nothing more than smoke and mirrors. Allegations indicated that while he assured investors of high returns and provided letters of guarantee—claiming he would be personally liable for any losses—no actual trading took place. Instead, he diverted investors' money to cover operational costs and personal expenses.

The Aftermath and Next Steps

Following numerous reports of deception, authorities became involved. The Commercial Affairs Department received 30 fraud complaints against Ong between March 2021 and June 2022, prompting legal action in January 2025. Ong's sentencing is scheduled for September 19, where he could potentially face a decade behind bars for each count of fraud.

A Cautionary Tale for Future Investors

This case serves as a stark reminder of the risks associated with investment schemes that appear too good to be true. As the investigation continues, it raises critical questions about investor due diligence and the necessity of skepticism in the world of finance.