Fraud Cases Essay

Published: 2020-04-22 15:25:56
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Tan Sri Eric Chia Eng Hock or commonly known as Eric Chia is a millionaire in Malaysia ad is a former chairmain of Perwaja Steel. In June 2007, Chia discharge committing criminal breach of trust 13 years ago when embezzling money from the company of Perwaja Rolling Mail and Development Sdn Bhd of RM $76. 4 million at 19 February 1994 when was the Managing Director. In his cases, Perwaja Rolling Mill and Development Sdn Bhd in Kuala Lumpur instructed American Express Bank Limited to transfer and credit 2,890,130,210 yen (RM76. million) into Frilsham Enterprise Incorporateds account. Yvonne Lam Yuen Shan, an operations support and control manager of the bank, said she also corrected Frilsham Enterprises account number from 953601855 to 9530018552. Lam, has agreed that the amount stated was actually credited into another bank account (account number 547003027) of Frilsham Enterprise. The 2,890,130,210 yen was the specific sum of payment under the technical assistance agreement, minus the bank charges. The original payment amounted to 2,891,580,000 yen.

Asked why the money was transferred to the second account instead of the earlier account, Lam said: We got confirmation from the customer that they would like the amount to be transferred into the second account. We executed the clients request to credit into the account. Chia is accused of dishonestly authorising payment for the amount to the account of Frilsham Enterprise Incorporated with American Express Bank Ltd, Hongkong, for technical assistance from NKK Corporation, when no such payment was due to the latter.

Alternatively, he is charged with dishonestly disposing of the funds by entering into an agreement with NKK Corporation and authorising payment for the amount without the approval of the board of directors or the tender committee of Perwaja Rolling Mill Development Sdn Bhd. He is alleged to have committed both offences as managing director of Perwaja Rolling Mill Development Sdn Bhd at its office at Menara UBN on Jalan P Ramlee here, between Nov 4, 1993, and Feb 22, 1994.

Another witness, Jesse Leung Ngai Chow, said he signed a letter on behalf of Apex Corporate Services Limited, directed to American Express Bank, on an application to open a bank account for Frilsham Enterprise Incorporated. Leung, who worked part-time at Apex as the managing director between 1993 and 1994, said the letter needed the signatures of four authorized signatories ” T. O. Yip, Robert Kong, H. Y Tan and himself. Asked to name the person who gave the instruction to open the account, Leung said it was Yuji Maeda.

Apex Corporate Services Limited provides incorporation of companies, company secretarial services, setting up of trusts and trustee, corporation nominee director and operation of bank accounts. Leung agreed that the two signature cards referring to two Frilsham Enterprise bank accounts were dated Feb 2, 1994, and both indicated closure of account on July 7, 1994. Another letter by Yuji Maeda instructed American Express Bank Limited to transfer the amount of 2,890,130,210 yen to Waterfront International Limited through a bank account 9547003126, he said.

On the search conducted by Michael Burley, acting chief investigating officer of the Independent Commission Against Corruption (ICAC), Leung said: Although the clients (Frilsham Enterprise) current status report which, was kept by Apex, was struck off, the Hongkong ICAC could still detect and reactivate that data. Leung said he did not know how the ICAC officers, who conducted the search on July 15 this year, could detect the data and added that it was suprising as Frilsham Enterprise was not functioning anymore and its data have been deleted completely.

Under cross-examination by lead defence counsel Datuk Muhammad Shafee Abdullah, Leung said the Anti-Corruption Agency in Malaysian made two visits to Apex Corporate Services Ltd for investigations. The first visit was on June 19, 1996, to check some details without any seizure, while the second visit was in April this year. Leung confirmed that Yuji Maeda was the only one who gave any instructions to Apex pertaining to Frilsham Enterprise. Asked how many companies Yuji Maeda had asked Apex to maintain for him, he said: A couple more, such as Sakyo Consultancy Inc.

Ltd, Borneo Enterprise. However, when asked whether Sita Investment Ltd was included in the list, Leung replied in the negative. The prosecution led by Attorney-General Tan Sri Gani Patail kept its promise to wrap up on Thursday its recording of evidence here on the alleged money trail pertaining to the RM76. 4 million when it called its sixth and last witness to the stand ” Cheng Tai Foon, a nominee director of Borneo Enterprise in January 1994.

Cheng, who is currently a director in a security firm, said he signed an application to open a bank account in Banque Indosuez on the instruction of Leung, who was his former boss when they were working at an accounting firm, John Byrn and Co. Asked how he got involved in signing as a nominee director, Cheng said Leung often referred cases to him and he admitted that he was also a nominee director of other companies such as Borneo Enterprise.

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