Venture Capitalist Taken in by Alleged $1.45 Billion Nickel Scam

In a dramatic turn of events in Singapore, renowned venture capitalist Finian Tan took the stand at the High Court on April 4, revealing that he had been 'sold' on the elaborate tale spun by alleged fraudster Ng Yu Zhi. The case centers around Ng, who has been accused of orchestrating a massive nickel-trading scam that allegedly defrauded investors out of a staggering $1.45 billion from 2016 to 2021.

Dr. Tan, founder and chairman of Vickers Venture Partners, expressed his shock at how he, a seasoned investor, fell for Ng’s deceitful narrative. "I have always prided myself on my ability to avoid being cheated," said Dr. Tan. However, he was initially convinced that the issues surrounding Ng's nickel-trading business were merely misunderstandings with the authorities.

As the investigation by the Commercial Affairs Department intensified, Dr. Tan began to suspect that the situation was far more serious than he had envisioned. “There was a serious stench of some fraud,” he admitted. Despite his efforts to offer help, he found Ng's responses to be unsatisfactory, prompting him to dig deeper.

During his testimony, Dr. Tan revealed that he had first met Ng in August 2020, when Ng sought to invest in Tan's firm, rather than discuss his nickel business. Driven by curiosity and Ng's persuasive skills, Dr. Tan later inquired about ways to invest in Ng's operations. He explained that he trusted Ng due to his charming demeanor and the staged 'amazing act' Ng displayed during their meetings, which included discussing nickel prices and sharing concerns over shipping logistics.

The prosecution alleges that Ng deceived Dr. Tan into believing that his company, Envy Global Trading (EGT), was engaged in profitable transactions involving nickel, convincing him to deliver nearly US$19.2 million over several months. The source of these funds mainly stemmed from Vickers Financial Group, where Tan is a majority owner, as well as a portion from Tan’s personal finances. Notably, Ng is also accused of defrauding other investors, including a company named FinComm, which funneled an additional US$14.1 million into the scheme.

Dr. Tan recalled how, at the time, the nickel investment seemed sound based on his own experience in commodities and feedback from other industry professionals. He noted that Ng presented a compelling story about securing nickel at discounted prices and needing partners to fund cargo shipments. “Why would someone running a Ponzi scheme lock up money for 12 years?” he pondered, reflecting on Ng’s alleged commitments to investment.

As the trial progresses, Dr. Tan's emotional testimony reveals the grave impact of the alleged fraud, not just on him but on countless individuals who invested their life savings into the scheme. “I now realize that lives have been destroyed,” he stated, grappling with the disconnect between the person he thought he knew and the allegations against Ng.

This case is a stark reminder of the risks involved in investing and the potential for even the most astute investors to be misled by sophisticated schemes. As the trial continues, observers are left to wonder how such a staggering fraud could have unfolded, and what it reveals about trust in the world of high-stakes investments. Stay tuned as we follow this unfolding story that has already captured international attention!