THE CASE

Between September and December 2015, M_Solution Trading, a Singapore-incorporated company, reportedly sold high-value electronic goods and software amounting to about S$55 million to various businesses, including Crescendo Hardware Trading. 

GST was charged on these sales, even though M_Solution Trading was only GST-registered from Dec 1, 2015, said the authorities. 

M_Solution Trading was allegedly a shell company with no real business operations. It was believed to have been used to generate purchase orders and sales invoices to support the subsequent GST refund claims by exporters. 

Both Yeo and Tan allegedly ran M_Solution Trading’s fraudulent operations and conspired to forge its sales invoices and delivery orders. 

For their fraudulent operations, Tan and Yeo were each charged under the Companies Act for being a knowing party to a fraudulent business. They were also charged two counts each under the Penal Code for conspiring to forge M_Solution Trading’s sales invoices and delivery orders respectively. 

If convicted of fraudulent trading, they may be jailed for up to seven years, fined or both. For conspiring to commit forgery, they may be jailed up to four years, fined, or both. 

Tan had also allegedly transferred about S$5 million from the company’s bank account to another bank account in Hong Kong in December 2015, despite knowing that the money came from criminal conduct. 

For this, he was also charged with one count of transferring benefits of criminal conduct under the Corruption, Drug Trafficking and Other Serious Crimes (Confiscation of Benefits) Act. If found guilty, he may be jailed up to 10 years, fined up to S$500,000, or both. 

Meanwhile, Yeo was allegedly in charge of Crescendo Hardware Trading’s fraudulent operations between October 2015 and April 2016. According to the police and IRAS, he had forged the company’s sales invoices to facilitate the fraud. 

He was charged with an additional count of fraudulent trading and another charge of conspiring to commit forgery in relation to Crescendo Hardware Trading, said the authorities.