Singapore Businessman Ng Yu Zhi Faces Trial for $1.1B Nickel Scam
Ng Yu Zhi, a former accountant and businessman, is on trial for scamming investors out of S$1.5 billion (around $1.1 billion) through a fake nickel trading scheme. Prosecutors revealed at the start of the trial that Ng channeled a third of the funds into his personal accounts, funding a lavish lifestyle with purchases including art, jewelry, and luxury cars.
Fraudulent Scheme
Ng, who led the Envy Group, convinced nearly 1,000 investors that they could profit from physical nickel trades, backed by discounted purchases from an Australian mine. However, prosecutors stated that no nickel was ever purchased and that the entire operation was a “pure fiction.” Ng’s companies did not have any agreements with the mine or contracts for the sale of metal. Instead, early investors were paid returns using the funds invested by newcomers, resembling a classic Ponzi scheme.
Lavish Lifestyle Funded by Fraud
Over six years, Ng’s companies received investments from 947 investors, including prominent figures in Singapore. Almost S$482 million of the funds were misappropriated for personal gain. Ng is facing 42 charges related to fraud, forgery, and money laundering, though he pleaded not guilty. The prosecution plans to call 58 witnesses to testify against him.
The Latest Financial Scandal in Singapore
This case adds to a series of financial scandals tarnishing Singapore’s reputation as a global financial hub. Recently, former oil tycoon Lim Oon Kuin was sentenced to 17.5 years in prison for fraud, and in October, S. Iswaran became the first former Singapore cabinet minister to be jailed in nearly 50 years for obstruction of justice.
