S$1.5b Envy Global fraud case: Ex-director’s bail raised to S$6 million after bankruptcy reveals more assets

SINGAPORE: A businessman at the centre of an alleged billion-dollar nickel investment fraud case has had his bail amount increased from S$4 million to S$6 million, after the prosecution argued that he is a potential flight risk.

Ng Yu Zhi, former managing director of Envy Global Trading, is accused of being involved in a scheme that cheated investors of about US$1.1 billion (S$1.5 billion).

It was decided on Thursday (Jan 19) that his case will be transferred to the High Court as he faces the prospect of more than 20 years in jail, which is beyond the sentencing jurisdiction of the State Courts.

The prosecution made the case for higher bail after a recent bankruptcy hearing revealed that Ng had another S$15.6 million in assets. 

Most of these assets, which include an apartment and a vehicle, are located overseas and are owned or held by other individuals.

Ng, 35, was first charged in March 2021 with cheating and fraudulent trading. He now faces 105 charges for offences that include criminal breach of trust and forgery.

Ng ran Envy Global Trading and Envy Asset Management, raising money from investors to purchase nickel and allegedly tricking investors to buy into a portion of receivables from the sale through forward contracts.

Investors were promised varying returns, averaging 15 per cent every three months, but the companies did not purchase any nickel, the prosecution alleged.

Among Ng’s purported victims are a criminal laywer, a former president of the Law Society of Singapore and a general counsel at Temasek. 

ARGUMENTS BY PROSECUTION

Deputy Public Prosecutor Gordon Oh, who was flanked by a team of three other prosecutors, raised two points on Thursday in support of his application for the bail to be increased by S$2 million.

First, the case will be transferred to the High Court, which means the prospect of higher sentences and therefore a higher potential flight risk.

Second, it is now known that Ng has access to additional funds overseas.

In a statement Ng made to the High Court as part of his recent bankruptcy proceedings, he had S$107 million in assets, mostly overseas.

This sum exceeds the amount known by the prosecution in July 2022 by about S$15.6 million.

Access to funds overseas translates to potential flight risk, said Mr Oh.

Of the sum of S$1.46 billion received by Ng’s two companies involved in the fraudulent trading charges, Ng received a total of S$486 million. 

To date, a significant portion of this amount remains unrecovered, said Mr Oh.

DEFENCE’S REBUTTAL

Defence lawyer Navin Naidu, a partner at Dentons Rodyk & Davidson and former deputy public prosecutor, rubbished the prosecution’s arguments and called the suggested increase in bail “crushing”.

He said the arguments, which were not supported by any affidavit from the Commercial Affairs Department, were “a blatant attempt to throw big numbers at the court” to get it to feel an increase in bail was necessary.

He said the burden is on the prosecution to show a material change in circumstances warranting bail, and to have proof for the things they are alleging.

Mr Navin said there has been no increase in the number of charges faced by his client, and his client has not shown he is “going to run”.

There are also multiple existing bail conditions to ensure Ng’s attendance in court, such as his electronic tagging, curfew and his prohibition from going to certain places in Singapore, said the lawyer.

Ng has also been cooperating with authorities and giving information about his overseas assets.

The fact that Ng is now bankrupt means that the system is holding him accountable, said Mr Navin.

Ng’s bailor is his 72-year-old father, who is a retiree living on his Central Provident Fund payouts, said the lawyer.

Ng’s father “effectively liquidated all his savings and stock options” in July 2021 to raise the bail of S$4 million for his son, and Ng would not want to see his father face financial hardship by running away, said Mr Navin.

“He won’t do that to his own father,” he said. “(His father) is on the edge, with this application being made.”

JUDGE’S DECISION

District Judge Terence Tay said bail applications in instances where new circumstances suggest a heightened flight risk should be made and dealt with urgently.

The prosecution had gone to court on Tuesday over the bail application but it was adjourned to Thursday.

If there was such an urgency, the prosecution should have proceeded on Tuesday, but instead, both sides agreed to adjourn the mention to Thursday, the judge noted.

“The prosecution loses the edge in that regard because factually, the accused is here,” he added.

However, the judge said not all factors can be viewed in the same vein as far as flight risk is concerned.

It is clear that assets overseas are within Ng’s control based on his own affidavit in the High Court, said Judge Tay.

While the prosecution has not provided a clear account of how the assets are linked to the charges, this is not critical as the main concern is whether Ng can use his overseas assets to sustain his lifestyle if he absconds, he said.

The case will be heard thereafter in the High Court.