Ng Yu Zhi Explained

Ng Yu Zhi (born 1987),[1] also known as Ng You Zhi,[2] [3] is a Singaporean alleged con artist and fraudster. The former director of Envy Global Trading, he was charged in March 2021 with running the largest Ponzi scheme[1] in the history of Singapore, worth about S$1.5 billion.

Business career

Ng founded and directed Envy Asset Management and Envy Global Trading.[4] He was a major shareholder in several eateries, including Cicada in Clarke Quay and Nishikane and Sake Labo in Stanley Street.[5] He also invested in a range of other business, including an interior design firm and a veterinary clinic.[6] According to the Business Times, Ng was also an "increasingly visible figure in Singapore's philanthropic community" who had a "positive public image" until his arrest,[1] with the Yong Loo Lin School of Medicine at the National University of Singapore commending him in August 2020 for his philanthropy.[2]

Fraud allegations

Following a probe in November 2020 by the Commercial Affairs Department (CAD) into suspicious activities carried out by his two companies,[7] Ng was arrested on 16 February 2021.[8] On 22 March 2021, he was charged with cheating and "being a party to fraudulent trading". He posted S$1.5 million bail and remained under 24-hour monitoring.[9] The following month, he was charged with forging bank documents.[10] In July 2021, his bail was raised to S$4 million.[11]

According to the prosecution, as part of an alleged Ponzi scheme that stretched from October 2017 till February 2021,[12] Ng courted investors for funds to purchase nickel metal from a company called Poseidon Nickel at a discounted price. The nickel would be resold for a profit to BNP Paribas Commodity Futures or Raffemet; Ng allegedly guaranteed his investors three-month profits averaging 15 per cent.[8] However, independent investigators alleged that the nickel being traded was nonexistent,[8] and that between S$300 million and S$474 million was transferred to Ng's personal bank accounts.[1] [13] About S$1.5 billion was invested in the alleged scam, with S$731 million returned to investors,[14] and around S$1 billion owed to them.[15] Ng's alleged scam reportedly ensnared some 300 victims;[16] if convicted, Ng would have had executed the largest investment fraud in the history of Singapore.[9]

As a result of the fraud allegations, Ng's restaurant Cicada closed, and Nishikane and Sake Labo were put up for sale by liquidators. He was declared bankrupt in 2022.[17] During his trial, one witness testified that two investors in his alleged Ponzi scheme "had died directly or indirectly because of pressure from this case."[17]

Personal life

Ng is married to Fujian native Coco Cai (born 1991), with whom he has one son and one daughter.[1] He lived with his family in a rented three-storey bungalow in Bukit Timah and owned a penthouse in Orchard Road.[1] He reportedly had a vast collection of sports cars and other luxury goods worth around S$100 million—including the only Pagani Huayra in Singapore—which was seized by the Commercial Affairs Department (CAD) in 2021 as part of investigations into his alleged fraud.[18]

Notes and References

  1. News: Diamonds, nickel – and S$1.46b of failed promises. 16 July 2021. Angela. Tan. Business Times.
  2. News: Wunderkind’s alleged $970 million fraud jolts Singapore. 16 April 2021. The Sydney Morning Herald. Alfred. Cang. David. Ramli. Chanyaporn. Chanjaroen.
  3. News: Asiaone. HReasily Receives US$5 Million Investment from Envy Capital. 11 September 2019.
  4. News: Singapore Charges 33-Year-Old in Alleged $750 Million Fraud. Bloomberg News. 23 March 2021.
  5. News: Envy ex-director's eateries – one shut, two up for sale. 1 August 2021. Joyce. Lim. The Straits Times.
  6. News: Curtain falls on business empire of Ng Yu Zhi, who is behind billion-dollar Envy ‘nickel trading scheme’. Joyce. Lim. 4 August 2021. The Straits Times.
  7. News: Businessman charged with cheating and fraud involving S$1 billion in nickel trading scheme. 23 March 2021. Today.
  8. News: How Ng Yu Zhi allegedly perpetrated the billion-dollar Envy 'nickel trading scheme'. 20 July 2021. The Straits Times. Grace. Leong.
  9. News: Singapore businessman linked to alleged fraud of record $1 billion charged. The Straits Times. 22 March 2021. David. Sun.
  10. News: S'pore businessman Ng Yu Zhi, linked to alleged fraud of record $1 billion, hit with 2 more charges. 27 April 2021. Wong. Shiying. The Straits Times.
  11. News: Singapore ups bail of alleged billion-dollar fraudster over escape fears. Reuters. 6 July 2021. Lin. Chen.
  12. News: Press Release. Singapore Police Force. 22 March 2021.
  13. News: Vickers Venture Partners ensnared by alleged billion-dollar nickel fraud. 7 May 2021. The Straits Times.
  14. News: $1.5b bogus trading scheme: Firms linked to suspect being wound up. 24 June 2021. Joyce. Lim. The Straits Times.
  15. News: S$1b Envy Global nickel investment case: Ex-director gets more charges involving S$284 million. Lydia. Lam. Channel News Asia. 28 June 2021.
  16. News: Will the Envy misstep tarnish what could be Vickers’ ‘best year’?. 28 June 2021. Tech in Asia. Tian Wen. Tay.
  17. Web site: Leong . Grace . 2 investors in Ng Yu Zhi’s Ponzi scheme ‘died because of pressure from case’: Private banker . 28 November 2024 . 28 November 2024.
  18. News: Luxury cars among $100m of assets seized from Envy director involved in alleged $1b fraud. 1 April 2021. The Straits Times. Joyce. Lim.