Director of vegetable supplier admits to cheating banks of more than $2.67million in loans
Tay Kim Yong was convicted of seven counts of cheating Maybank, UOB and OCBC.
ST PHOTO: KELVIN CHNG
Jean Iau
SINGAPORE - For about 10 months, a director of a food supplies business conspired with one of his trade partners to forge invoices and cheat banks into disbursing more than $2.67 million in business loans.
Tay Kim Yong did this as he needed cash for A Yong, the company where he is a director and shareholder, and to pay his workers.
The 52-year-old admitted to the crime, and on Friday (April 1), was convicted of seven counts of cheating Maybank, UOB and OCBC Bank.
Sixteen similar charges will be taken into account for his sentencing.
The court heard that in 2019, Tay approached one Tan Teck Tiang, 54.
Tan was the director of Chiam Joo Seng Towgay Growers & Suppliers and 100 Chiam Joo Seng at the time.
Tay said he wanted to use invoices from Tan's company to show that A Yong had purchased vegetables from it.
This would allow him to apply for a bank credit facility based on the amount reflected in the invoices.
The plan was for Tan to pass Tay the money once the loan was approved and after the bank disbursed the funds into Tan's companies accounts.
Tay assured Tan that he would pay the banks promptly and Tan agreed to help the accused as they were trade partners, said Deputy Public Prosecutor Selene Yap.
Whenever Tay needed cash, he would ask his admin and accounts officer, known only as Jenny, to create an invoice under Tan's companies.
Tay would write down the name and details of the company, the description of the supplies, quantity, unit of measurement, unit price and total amount, and the details of the recipient bank account, which would be one of Tan's company's bank accounts.
His staff would use an Excel sheet to create an invoice identical to the invoice issued by Tan's companies.
Tan would sign the invoices as the supplier and Tay would sign off as the receiver.
After Maybank, UOB, or OCBC disbursed the money in Tan's account, he transferred it to A Yong through an online transfer or a cheque.
A total of 23 fraudulent invoices were supplied to the banks, and Tan received 22 payouts.
The 23 comprised 13 invoices to OCBC, six invoices to UOB and four to Maybank.
OCBC disbursed about $1.46 million, and recovered $1.41 million, UOB disbursed a total of $727,735.57 and recovered $727,732.57, and Maybank disbursed about $484,000 and recovered about $151,300.
The crime came to light on Jan 13, 2020, when the chief operations officer of A Yong lodged a police report saying that Tay had been falsifying and forging suppliers' invoices to OCBC, Maybank and UOB to receive trade financing.
It was not mentioned in court if Mr Tan has been dealt with.
Tay is scheduled to be sentenced on April 18.
For each count of cheating, Tay can be jailed for up to 10 years, and fined.
Jean Iau
SINGAPORE - For about 10 months, a director of a food supplies business conspired with one of his trade partners to forge invoices and cheat banks into disbursing more than $2.67 million in business loans.
Tay Kim Yong did this as he needed cash for A Yong, the company where he is a director and shareholder, and to pay his workers.
The 52-year-old admitted to the crime, and on Friday (April 1), was convicted of seven counts of cheating Maybank, UOB and OCBC Bank.
Sixteen similar charges will be taken into account for his sentencing.
The court heard that in 2019, Tay approached one Tan Teck Tiang, 54.
Tan was the director of Chiam Joo Seng Towgay Growers & Suppliers and 100 Chiam Joo Seng at the time.
Tay said he wanted to use invoices from Tan's company to show that A Yong had purchased vegetables from it.
This would allow him to apply for a bank credit facility based on the amount reflected in the invoices.
The plan was for Tan to pass Tay the money once the loan was approved and after the bank disbursed the funds into Tan's companies accounts.
Tay assured Tan that he would pay the banks promptly and Tan agreed to help the accused as they were trade partners, said Deputy Public Prosecutor Selene Yap.
Whenever Tay needed cash, he would ask his admin and accounts officer, known only as Jenny, to create an invoice under Tan's companies.
Tay would write down the name and details of the company, the description of the supplies, quantity, unit of measurement, unit price and total amount, and the details of the recipient bank account, which would be one of Tan's company's bank accounts.
His staff would use an Excel sheet to create an invoice identical to the invoice issued by Tan's companies.
Tan would sign the invoices as the supplier and Tay would sign off as the receiver.
After Maybank, UOB, or OCBC disbursed the money in Tan's account, he transferred it to A Yong through an online transfer or a cheque.
A total of 23 fraudulent invoices were supplied to the banks, and Tan received 22 payouts.
The 23 comprised 13 invoices to OCBC, six invoices to UOB and four to Maybank.
OCBC disbursed about $1.46 million, and recovered $1.41 million, UOB disbursed a total of $727,735.57 and recovered $727,732.57, and Maybank disbursed about $484,000 and recovered about $151,300.
The crime came to light on Jan 13, 2020, when the chief operations officer of A Yong lodged a police report saying that Tay had been falsifying and forging suppliers' invoices to OCBC, Maybank and UOB to receive trade financing.
It was not mentioned in court if Mr Tan has been dealt with.
Tay is scheduled to be sentenced on April 18.
For each count of cheating, Tay can be jailed for up to 10 years, and fined.
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