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MP, lawyers and businessmen lose over $10m in investment 'scam'
Singaporean investors file police report against HK businessman over alleged scam.
Mon, May 28, 2012
AsiaOne
SINGAPORE - A group of more than 20 investors are crying foul after investing more than $10 million in a Hong Kong-based start-up which has failed to take off.
They include an MP, several businessmen and lawyers, who are unnamed due to requests of anonymity.
The business was supposedly an online marketing portal for regional suppliers looking to sell products in China, started by a Hong Kong businessman who appeared to have links to Chinese and Hong Kong officials.
According to a report in The Straits Times (ST), eight of the investors claimed to have been approached by a trusted stockbroker in 2006 and 2007.
The investors claim that they were told that the company, which had been developed over a period of six years, was worth HK$857 million (S$140 million).
They said that they were not allowed to see the business' accounts, and were led to believe that it was doing well.
It was even rumoured that Hong Kong and Macau tycoons like Mr Richard Li and Mr Stanley Ho had invested in the company.
One of the investors, who claimed to have met the businessman before, said that the businessman "had a way of talking, and making it seem like he knew many people.'
Investors were only told that the business was failing late last year, and some started to file police reports from February this year.
The former stockbroker, who was in charge of approaching investors here, has also filed a police report against the businessman.
While he was paid $10,000 a month, the stockbroker alleged that he was forced to resign and was cursed at by the businessman.
He has since moved to Malaysia as the scandal has prevented him from getting a job here.
ST reported that attempts to reach the Hong Kong businessman have failed.
[email protected]
Singaporean investors file police report against HK businessman over alleged scam.
Mon, May 28, 2012
AsiaOne
SINGAPORE - A group of more than 20 investors are crying foul after investing more than $10 million in a Hong Kong-based start-up which has failed to take off.
They include an MP, several businessmen and lawyers, who are unnamed due to requests of anonymity.
The business was supposedly an online marketing portal for regional suppliers looking to sell products in China, started by a Hong Kong businessman who appeared to have links to Chinese and Hong Kong officials.
According to a report in The Straits Times (ST), eight of the investors claimed to have been approached by a trusted stockbroker in 2006 and 2007.
The investors claim that they were told that the company, which had been developed over a period of six years, was worth HK$857 million (S$140 million).
They said that they were not allowed to see the business' accounts, and were led to believe that it was doing well.
It was even rumoured that Hong Kong and Macau tycoons like Mr Richard Li and Mr Stanley Ho had invested in the company.
One of the investors, who claimed to have met the businessman before, said that the businessman "had a way of talking, and making it seem like he knew many people.'
Investors were only told that the business was failing late last year, and some started to file police reports from February this year.
The former stockbroker, who was in charge of approaching investors here, has also filed a police report against the businessman.
While he was paid $10,000 a month, the stockbroker alleged that he was forced to resign and was cursed at by the businessman.
He has since moved to Malaysia as the scandal has prevented him from getting a job here.
ST reported that attempts to reach the Hong Kong businessman have failed.
[email protected]
