Envysion and its chief executive are among those alleged to have been cheated in a nickel trading scheme that raised at least S$1 billion ($742.12 million) from investors.
Ng Yu Zhi, director of Envy Asset Management and Envy Global Trading, was charged last week with two counts of cheating fund manager Envysion Wealth Management and its founder and CEO, Veronica Shim, of at least $48 million.
Investors were led to believe that the Envy companies had sold a significant quantity of nickel to French bank BNP Paribas and were promised returns averaging 15 percent, but the transactions never took place.
The 33-year-old director also faces two charges of operating his two firms, both of which were not MAS-licensed, for fraudulent purposes. He is expected to face additional charges next month.
Luxury Cars Seized
Of the S$1 billion invested in Envy Asset Management and Envy Global Trading between October 2017 and February 2021, about S$300 million was allegedly transferred to Ng’s personal bank accounts, «Reuters» reported.
Police have seized some S$100 million in luxury assets, including several rare supercars, from Ng, who also has significant investments in Hong Kong, London and Switzerland, «The Straits Times» reported on Thursday.
Envysion Under Review
As a result of the scandal, Envysion has stopped accepting new subscriptions to the fund invested in EGT, and sent out redemption instructions to EGT. Envysion is being reviewed by the Monetary Authority of Singapore (MAS) to determine if there have been governance or risk management failures by its board and senior management.
«MAS expects licensed fund managers to practice robust governance to safeguard the interest of their investors. This includes performing proper due diligence before undertaking investments and addressing concentration and other risks to investors,» the regulator said in an announcement last week.
An Envysion spokesperson told finews.asia the company is working alongside MAS in making sure investors’ interests are taken care of. «Envysion has engaged a legal team and is in discussion on the appropriate legal proceedings against EGT for the recovery of investment of our clients,» the spokesperson said.
Agreement Cancelled
In the meantime, Envysion and Geneva-based oil trading major Mercuria have agreed to mutually terminate a partnership agreement to jointly invest in mining and energy projects, which was signed only in January.
«Meanwhile we continue with our primary focus of expanding our scope of services and diversifying our clients’ portfolios across different asset classes. We have a healthy pipeline of business opportunities and will continue our growth in the region as planned,» the spokesperson said.
