Financial Crime World

Financial Fraudster Chia Teck Leng Sentenced to Record-breaking 42 Years in Prison

In a groundbreaking judgment for commercial crimes in Singapore, the High Court sentenced Chia Teck Leng to a record-breaking 42 years in prison on 2nd April 2004. This came after Leng’s admission of guilt to charges of forgery and cheating amounting to more than $117 million.

Mastermind of Singapore’s Largest Commercial Fraud

Chia Teck Leng, a finance manager at Asia Pacific Breweries (APB) from 1999 to 2003, orchestrated an intricate web of deception that saw him forge documents to swindle funds from several leading banks, including:

  1. Skandinaviska Enskilda Banken (SEB)
  2. Sakura Bank (now Sumitomo Mitsui Banking Corporation)
  3. Fuji Bank (now Mizuho Corporate Bank)
  4. Bayerische Hypo-und Vereinsbank Aktiengesellschaft

He was accused of obtaining credit and loan facilities for APB, with himself as the sole signatory.

Double Life of a ‘Nondescript Executive’

Colleagues described Chia, who had previously held several senior positions in various companies and began his career at Arthur Andersen, as a “nondescript executive” earning between $200,000 and $300,000 per annum. However, the mask he wore at work hid a double life. Chia was a regular visitor to casinos in Australia, Britain, Hong Kong, Malaysia, Cambodia and the Philippines, where he received VIP treatment. He stayed in rooms costing A$25,000 a night at establishments like the Crown Casino in Melbourne.

Gambling Addiction Led to Fraud

Lured by his gambling addiction and huge debts since 1994, Chia had amassed considerable debt despite occasional triumphs. His luck ran out by the time he joined APB in 1999, leaving him heavily indebted. To maintain his extravagant lifestyle, Chia forged documents, including certified extracts of board resolutions, which were used to deceive the banks into extending credit. He successfully mimicked the signatures of APB executives such as Koh Poh Tiong, Ton Blum, and Tan Yam Pin, the managing director of Fraser and Neave at that time.

Arrest and Charges

Chia’s arrest followed in September 2003, shortly after he was first charged with cheating SEB for $3 million. Further investigations led to the discovery of his intricate scheme, resulting in a total of 46 charges filed against him, including forgery, cheating, money laundering, and criminal breach of trust.

Unprecedented Sentence

The magnitude of the fraud led High Court Judge Tay Yong Kwang to sentence Chia to an unprecedented 42-year jail term, emphasizing the severity of the crime and the importance of safeguarding against corporate fraud. Judge Tay stated, “Chia’s crime was the work of a ‘criminal genius’.”

Insights on Gambling and Safeguards

Previously, Chia had written a 13-page paper titled ‘Taming The Casino Dragon,’ describing his gambling experiences in casinos and offering his perspective on potential safeguards should the government choose to build a casino in Singapore. Public reaction to the article was mixed, with some regarding it as insightful and others viewing it as an attempt to deflect the blame.

A Turning Point in Fighting Corporate Crime

This high-profile financial fraud marked a turning point in Singapore’s efforts against corporate crime and underscored the importance of stringent measures to protect businesses and financial institutions from fraudulent activities.