Singapore Police Sweep Up $27 Million from China‑Backed Ponzi Scheme
In a blockbuster bust, Singapore’s Commercial Affairs Department (CAD) has hauled back more than $27 million that was funneled into China’s largest fake‑lending platform, Ezubao. The scheme, which was nothing short of a colossal Ponzi ring, finally met its match—after a Beijing court convicted 26 crooks, the funds were returned to China this month.
What Went Down?
Ezubao was the “gold‑plate” for sham investors. A whopping 1.15 million people lost an estimated 38 billion Chinese yuan (about S$7.5 billion). Meanwhile, needles‑in‑a‑haystack money trails dragged a chunk of the loot over Singapore’s waters.
Singapore & China: Two Forces, One Mission
- May 2016: CAD teamed up with China’s Economic Crime Investigation Department (ECID) to trace assets that had slipped into Singapore.
- The joint operation, run alongside China’s Embassy, uncovered that Singapore had no local parties laundering the money.
- Following the investigation, CAD identified the $27 million that had leaked overseas and raised the alarm to Chinese authorities.
Scandal’s Downfall
In a Beijing court showdown, the 26 individuals were handed down verdicts ranging from three years of prison to lifetime sentences—picnic or not, they’re in for the long haul.
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Thanks to swift cooperation between Singapore and China, the seized funds were returned to China, paving the way for victims’ restitution under the Chinese legal framework.
CAD’s Take‑away
“This case demonstrates our unwavering commitment to partnering with foreign law‑enforcement to sniff out trans‑national crime and protect Singapore’s flung‑givel integrity,”
The Director at CAD, David Chew, adds, “The strong ties between our police forces and China’s are key to keeping our financial playground crime‑free.”
Law‑Firm Legal Flag Fall-Out
In April, a former director of a Singapore law firm was fined $10,000 for not tipping off authorities that her “high‑net‑worth client” might be involved in the Ponzi escapade.
That person, Kang Bee Leng (56), managed Sterling Law Corporation and handled conveyancing for Zhang Min, ex‑president of Yucheng International Holdings, which operated Ezubao.
Zhang was eyeing a Sentosa Cove home worth $23.8 million, only to be nabbed by Chinese authorities in December 2015.
Sources
— The Straits Times (Original publication). Reproduction requires permission.
