The alleged mastermind behind Singapore’s biggest investment fraud is believed to have used swindled money to fund a lavish lifestyle of private jets, cash gifts and more.
Ng Yu Zhi was responsible for outflows of S$475 million ($352 million) from Envy Group and its subsidiaries, according to a report by court-appointed judicial managers seen by «Bloomberg».
Ng spent about S$2 million a month to fund his lavish lifestyle which involved butler and chauffeur services, alcohol, hotel accommodation, fine dining and more.
Ng also gave «significant monetary gifts to close associates».
Other Recipients
Other recipients of the funds include Envy business partner Lee Si Ye, other employees and some investors as referral fees, according to the report.
About S$119.7 million was attributed to investor withdrawals with S$64.5 million of outflows yet to be verified.
Envy Wealth Management
Personal loans worth S$7.5 million were also made to Envysion Wealth Management founder Veronica Shim with S$5.5 million set aside to be applied towards the firm’s capital and an option for Ng to convert it into a 50 percent stake in Envysion Holdings Pte.
The remaining amount would fund a shareholder’s loan in Shim’s name to Envysion, accruing 4 percent interest per annum, the report said.
Shim, an ex-private banker who was previously named by the police as an investor in Envy’s funds, said she and Envision were victims of Ng’s alleged fraud.
Retrieval Process
The team of judicial managers, led by KPMG’s Bob Yap, will look to retrieve other funds including referral fees to investors and investor withdrawals that exceeded their original investments. Claims have also been placed on Lee and Shim’s funds equivalent to the original sums received.
About S$53 million remain in Envy’s bank and brokerage accounts while Ng has had more than S$100 million of personal assets frozen by the police.
Ng faces 32 charges in what could potentially be Singapore’s biggest investment fraud in history where investors were led to believe that Envy companies sold a significant amount of nickel to BNP Paribas, though the transactions never occurred.
