Liquidators on the hunt for $855M from alleged nickel trading scandal

SINGAPORE: The High Court witnessed the commencement of a civil trial on July 30, where liquidators seek to reclaim millions from Ng Yu Zhi and three others involved in an alleged nickel trading scam.

Ng, along with former directors Lee Si Ye and Ju Xiao and former employee Cheong Ming Feng, are facing accusations of complicity in what is purported to be Singapore’s largest Ponzi scheme, amounting to $1.5 billion.

The liquidators on the hunt

The liquidators of Ng’s companies, Envy Global Trading (EGT), Envy Asset Management (EAM), and Envy Management Holdings, initiated legal action in November 2021 to recover funds for the investors.

They allege that Ng and his associates are responsible for the loss of $855 million, including $416.5 million and US$17.7 million transferred to Ng’s accounts under pretences.

Ng, who was declared bankrupt in December 2022, did not appear in court. His companies are reported to have received substantial investor funds, with a significant portion still outstanding.

The liquidators also seek to recover additional millions in commissions, dividends, and fees paid to the defendants.

The defendants have claimed ignorance of Ng’s fraudulent activities, asserting that they believed in the legitimacy of the nickel trading business. However, the liquidators argue that their disregard for numerous red flags constitutes a breach of their duties.

Ms Lee, who represented herself in court, maintained her innocence, stating that she acted in good faith and was unaware of fraud. Mr Ju and Mr Cheong also claimed they were following Ng’s instructions, with Mr Cheong’s lawyer emphasizing his client’s limited role in the scheme.

The trial revealed allegations of document forgery and misleading investors with fake nickel purchases. Despite their claims of innocence, the evidence presented by the liquidators paints a picture of a sophisticated scam.

More criminal charges

Ng is facing this civil trial and 106 criminal charges related to the scam, including cheating, forgery, and money laundering. Meanwhile, six other former employees are set to face their trial in September, with the liquidators seeking to recover over $40 million from them.

As the trial unfolds, the public and investors are watching closely, hoping for justice and the recovery of the substantial funds lost in this complex and high-stakes nickel trading scam.

Featured image: Depositphotos