Jail for man over ruse to cheat banks into disbursing more than $1.5m in loans

Payments from JPS to Sit Ley were typically made via JPS’ post-shipment import financing facilities with various banks, the court heard.

“Tan knew that the banks required the invoices and delivery orders from (a supplier such as Sit Ley) before the banks would approve JPS’ import financing applications and make payments to the supplier,” the prosecutor said.

Some time before Sept 29, 2011, Sim asked Tan if Sit Ley could help JPS with its cash flow issues by lending a sum of money, which JPS would repay by applying for an import financing loan.

The older man, who agreed to be part of the deal, then told Sit Ley’s staff to prepare an invoice and a delivery order, involving a non-existent sale of timber, to be given to JPS.

On Sept 29, 2011, Sit Ley transferred more than $500,000 to JPS via a cheque.

The following month, JPS used a fictitious Sit Ley invoice and applied for import financing from a bank.

“There was no such sale of timber between Sit Ley and JPS, and the import financing loan was solely for JPS to repay Sit Ley the loan sum of (over $500,000),” said the DPP.

In 2012 and 2014, Tan committed similar offences linked to two other banks involving more than $1 million in total.

Defence lawyers Choo Si Sen, Patrick Nai and Choo Yean Lin pleaded for their client to be given a maximum of a year and three months’ jail.

The lawyers stated in court documents that this case involved Tan’s first brush with the law, adding: “The accused is in poor mental and physical health and suffered from a partial collapse of his left lung. He suffers from progressively worse major depressive illness.”

Tan’s bail has been set at $50,000, and he is expected to begin serving his sentence on Nov 3.