It was an amazing act

Singapore: Finian Tan Testifies in Ng Yu Zhi’s Trial

Ng Yu Zhi spoke the traders’ lingo, was always checking nickel prices and, at one point, monitored the hurricane situation in Australia to make sure the loading of his nickel cargo would not be affected. Finian Tan said that when the nickel cargo was loaded uneventfully, Ng high-fived him.

“It was an amazing act, knowing what I know now. Obviously at the time I took everything as bona fide, but he gained a lot of my trust,” Dr Tan said on Friday (Apr 4), the second day of his testimony in Ng’s trial, as he gave evidence on how he came to trust the accused enough to pour millions into Ng’s purported nickel business.

Investment Scam

The prosecution is proceeding on 42 of these charges in the trial where Ng is accused of perpetrating the offences through his companies Envy Asset Management and Envy Global Trading, when no nickel had ever been bought or sold.

The founder and chairman of Vickers Venture Partners on Friday admitted that it was his first time falling prey to an investment scam. He said that he had earlier managed to avoid being scammed, adding that he could see the slip-ups and inconsistencies from people who tried to cheat him.

Investment Losses

Dr Tan, together with a fellow shareholder, some partners and staff members, have allegedly been swindled of US$19.2 million.

The funds were invested in Ng’s purported nickel business between October 2020 and January 2021, with the bulk coming from Dr Tan. One of the companies that he owns as a majority shareholder contributed US$14 million, and he personally invested US$1.5 million.

Due Diligence

Moreover, the venture capitalist had done due diligence on Ng’s nickel business, including enquiring with the people who had invested in it and said that there were no problems with withdrawing the funds.

Conclusion

Dr Tan’s testimony revealed the extent of his trust in Ng, as well as the due diligence he had done, which gave him confidence to invest millions in Ng’s nickel business. However, it was later revealed that Ng had been running a Ponzi scheme, and Dr Tan was left with significant investment losses.

FAQs

Q: What was the amount of investment lost by Dr Tan and his associates?
A: US$19.2 million

Q: What was the purpose of Ng’s companies Envy Asset Management and Envy Global Trading?
A: To perpetrate a Ponzi scheme

Q: Why did Dr Tan trust Ng?
A: Ng spoke the traders’ lingo, checked nickel prices, and monitored the hurricane situation in Australia to ensure the loading of his nickel cargo would not be affected, which gained Dr Tan’s trust

Q: What was the outcome of Dr Tan’s due diligence?
A: He did due diligence on Ng’s nickel business, including enquiring with the people who had invested in it and said that there were no problems with withdrawing the funds

Q: What did Dr Tan learn from the experience?
A: He learned that it is difficult to beat a fraudster because the playing field is not a level field, and that he should not have trusted Ng