The Commercial Affairs Department (CAD) investigated The Gold Label Pte Ltd (TGL), a gold investment company, which sold gold bars under a buyback scheme. Under the buyback scheme, the company sold physical gold bars to investors at a mark-up of more than 20% above prevailing gold prices. Investors were promised returns as high as 24% per annum, and were given an option to sell back the gold bars to TGL, at the same purchase price after a specified period.
Through investigation, it was found that TGL had attracted more than 2,000 investors, and recorded a turnover of close to S$150 million. The company was wound up by its creditors, after it failed to honour its payment and buyback obligations.
Two of TGL’s directors, James Iseli Rudolf Maitland and Wong Kwan Sing, were charged in court on 24 October 2018 with fraudulent trading under Section 340(5) of the Companies Act. The remaining director was arrested in Malaysia on 25 January 2019 with the assistance of the Royal Malaysia Police, and she will be charged in court on 26 January 2019 with fraudulent trading under Section 340(5) of the Companies Act. The trio is alleged to have sold TGL’s buyback schemes, when the company did not operate any substantive profit generating business, and had no sustainable means of honouring its payment and buyback obligations
If convicted, the trio will face imprisonment of up to 7 years, or a fine of up to $15,000, or both.
SINGAPORE POLICE FORCE
25 January 2019 @ 5:45 PM