SINGAPORE – A car rental business owner was handed a jail sentence over a scheme which saw him subletting vehicles to his clients that he had leased from other firms.
Soon Yunn Chiuan induced them into delivering payments to him, thinking they were servicing their rental agreements. In reality, he was using the funds to cover business costs and his own personal expenses.
The 50-year-old was on Sept 15 handed a jail term of three years and six months after he pleaded guilty to five cheating charges and one forgery indictment.
Another 35 cheating charges were taken into consideration for his sentencing.
His business ran into trouble when he could not keep up with payment to the other firms, and the cars were repossessed from Soon’s customers who had paid upfront or were making monthly payments.
In all, Soon received more than $295,400 from hirers who thought they were renting cars from him. They suffered a total of $176,273.50 in losses when the cars were repossessed.
The court heard that Soon’s business was initially profitable, although he ran a car rental business without actually having any of his own cars.
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