Company manager cheated 3 banks out of over S$2.6m using fake invoices for buying vegetables

SINGAPORE: A company director was jailed on Monday (April 18) after being found guilty of defrauding three banks of more than S$2.6 million.

Tay Kim Yong had done so using fake invoices for alleged vegetable purchases from February to December 2019, police said in a statement.

According to court documents, Tay was sentenced to 30 months in prison on Monday.

The 52 year old man was the director of A Yong Private Limited, a fruit and vegetable wholesale company.

Police say Tay’s business was experiencing cash flow problems in early 2019. This prompted him to contact a man identified as Tan Teck Tiang for help.

Tan, 54, was the director of 100 Chiam Joo Seng and Chiam Joo Seng Towgay Growers & Suppliers.

Tay asked Tan to allow him to use fake Chiam Joo Seng invoices or 100 Chiam Joo Seng invoices for A Yong’s alleged purchases from the two companies.

Tay’s goal was to obtain loans through A Yong’s factoring agreement with banks whenever he needed funds, police said.

With Tan’s agreement, Tay had his employees create the invoices, which were similar to those issued by Chiam Joo Seng or 100 Chiam Joo Seng.

Between February and December 2019, Tay provided his staff with details of alleged vegetable purchases on 23 occasions, police said.

On each occasion, after receiving the printed invoices from his workers, Tay would ask Tan to sign them.

He would also sign the invoice to “falsely indicate receipt of the goods”, police added.

The invoice was then submitted to the banks along with the loan applications, which resulted in the banks disbursing the loan amount to Tan’s two companies.

After receiving the funds from the banks, Tan then made online transfers of the funds or issued a check for the amount in favor of A Yong. Tay would then use the funds received for the operations of his business and to pay his workers.

As a result of Tay’s actions, OCBC, Maybank and UOB had disbursed loans amounting to S$1,466,808.5, S$484,051.42 and S$727,735.57 respectively.

Police say Tay was charged in court on January 19 this year with 23 counts of conspiracy to cheat and aiding and abetting under the Penal Code.

On April 1, he was convicted of seven counts of conspiracy to cheat.

Information from the Accounting and Business Regulatory Authority (ACRA) portal showed on Monday that A Yong is currently in liquidation.