Former money-changer gets six years’ jail for misappropriating S$4m

SINGAPORE — Heartened by her returns from investing in foreign currencies with a money-changer, Ms Ng Hwee Boon continued to do so for more than a year, ploughing in close to S$3.7 million, and even encouraged her friends and sisters to do the same.

However she lost it all when Fazal Mohamed N.M.A.R Mohamed Ebrahim, who lost his licence in March 2011, told Ms Ng that he could not pay the monies due to her.

Yesterday, the State Courts sentenced the 52-year-old to six years’ jail for misappropriating close to S$4 million from Ms Ng and another customer.

He was also fined S$10,000 for operating a money-changing business without a licence.

Fazal was found guilty earlier this month of two charges of criminal breach of trust committed between March and October 2011 and one charge of operating a money-changing business without a valid money-changer’s licence.

The court heard that in July 2010, Ms Ng went to Fazal’s shop at The Arcade in Raffles Place, where his employee advised her to invest in the euro. Ms Ng was guaranteed a 2.8 per cent return on the invested sum, payable at the end of two weeks.

After receiving the promised returns, on top of what she had initially invested, Ms Ng continued to invest in foreign currencies through Fazal. For every investment, she was issued an invoice, which stated the sum invested, the guaranteed returns and the maturity date of the investment.

Ms Ng later roped in her friend and three sisters — and the five of them invested a total of S$3,664,079.25 with Fazal.

However, in late 2011, Fazal told her that he was unable to pay backthe monies she had invested and the guaranteed returns.

He later signed 12 promissory notes, which Ms Ng prepared, stating that he had to repay her the sum.

Although he was unable to invest the monies after his money-changer’s licence ceased on March 14, 2011 — Fazal was required to apply for a new one following the death of his father, who had been listed as a partner in the business — he continued to pay Ms Ng her guaranteed returns on her existing investments.

In return, Ms Ng allowed him to keep the principal sum she had invested and also gave Fazal more money for investment purposes.

Similarly, when Ms Ng’s friend, Ms Angeline Ong Hsiao Wei, was told that Fazal could not pay back the monies she had invested, Ms Ong prepared two promissory notes stating that he had to pay her a total sum of S$269,482.50.

Fazal, who did not tell the two women that he had lost his money-changer’s licence, also continued to pay Ms Ong the guaranteed returns on her existing investments.

A money-changer’s licence does not specifically prohibit involvement in forex investment schemes.

During the 32-day trial, Fazal claimed that the two women had given him the money as loans.

His lawyer, Mr Manimaran Arumugam, told the court yesterday that his client will be appealing against the conviction and sentence.

Fazal is out on a S$400,000 bail.