Former Director Jailed for Misusing S$7 Million to Buy Company Shares

A managing director in Singapore was sentenced to three-and-a-half years in jail for misappropriating S$7 million from his investment holding firm, KLW Holdings. Lee Boon Teck, 58, used the stolen sum to buy shares in the company, now known as HS Optimus Holdings, where he was also the executive chairman. He pleaded guilty to criminal breach of trust and falsifying accounts, with ten similar charges considered during sentencing. Lee committed the offences in 2014 with his co-accused, Chan Ewe Teik, now known as Michael ET Chan, whose case is pending.

Chan, the sole director of Straitsworld Advisory, offered consultancy services to Lee after meeting in 2010 or 2011. He introduced business opportunities to KLW, including projects in China involving a state-owned hotel acquisition and land development. Lee did not inform KLW's board about these projects, which required board approval. He misappropriated S$14 million in commitment fees, using S$7 million to buy KLW shares and redirecting the remaining sum to another project.

Lee also directed false entries in financial statements to cover up transactions totaling S$18.15 million, including commitment fees, a project fee, and a personal loan. The District Judge stated that Lee abused his corporate authority, deceiving the company's board and the public. Lee's jail term reflected significant restitution made and aimed at deterrence.

According to the source: CNA.