SINGAPORE: Three company directors of a gold investment company who cheated more than 2,000 investors of about S$150 million will face charges of fraudulent trading, said the Singapore Police Force on Friday (Jan 25).
James Iseli Rudolf Maitland and Wong Kwan Sing were charged with fraudulent trading on Oct 24 last year.
AdvertisementThe third director, a woman, who was arrested in Malaysia on Friday, will be charged on Saturday.
The Gold Label (TGL), which sold physical gold bars under a buyback scheme, was investigated by the Commercial Affairs Department.
The bars were sold to investors at a mark-up of more than 20 per cent above prevailing gold prices. In turn, investors were promised returns as high as 24 per cent per annum.
Investors could also sell back the gold bars to the company at the same purchase price after a certain period.
AdvertisementAdvertisementMore than 2,000 investors were involved in the scheme, which recorded a turnover of close to S$150 million, said police.
However, the company was subsequently wound up by its creditors after it failed to honour its payment and buyback obligations.
"The trio is alleged to have sold TGL’s buyback schemes, when the company did not operate any substantive profit-generating business, and had no sustainable means of honouring its payment and buyback obligations," said police in the release.
If found guilty, the trio can be jailed up to seven years, and/or fined up to S$15,000.
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