Con men are everywhere. Be careful of promises of 30% quick returns!
Nov 19, 2009
Con man cheated 91 people of $13m Lee Hock Chye jailed for 14 years for investment scam
By Elena Chong & Mavis Toh They were successful professionals in their own right. But the lure of making a quick buck saw two people fall for the ruse of a con man.
Over a 12-month period from 2007 to last year, the 51-year-old architect and the 49-year-old senior manager handed over $700,000 altogether to Lee Hock Chye.
They were not the only ones to fall for the scam. In all, Lee, 30, convinced 91 people in just two years to put $13.4 million into an investment scam he concocted in April 2006.
Only $3 million was paid as returns to the customers.
His victims - including retirees, businessmen and students - gave him amounts ranging from $430 to $744,000, after he promised them returns as high as 30 per cent.
Yesterday, District Judge Toh Yung Cheong jailed Lee for 14 years on 16 counts of cheating. Each could have landed him in jail for up to seven years.
As some of his offences were also committed after Feb 1, 2008 - when the Penal Code was amended - he could have faced up to 10 years' jail on each count.
Another 149 similar charges were taken into consideration.
Deputy Public Prosecutor James Lee told the court that Lee had set up his company, LePrime, to give the illusion that he was trading in the index futures market and could offer various investment schemes with high returns.
Lee claimed that LePrime conducted trading in Dow Jones, Hang Seng Index and Nikkei 225 Index.
He was able to get investors on board as those who referred others to the scheme were promised a monthly interest payout. The company also sent daily trading statements to clients, leading many to believe that the firm was professional and legitimate.
But 'the index trading was fictitious and the offered investment schemes did not exist', said DPP Lee.
Lee would use the clients' money to cover his own expenditure or to repay existing clients, in order to maintain the illusion that he was trading.
He even drew up profit-and loss-sharing agreements to dupe his clients.
However, things began to unravel in May last year when a client complained to the police that LePrime had failed to make the monthly interest payouts and principal sums due.
Lee admitted his offences to the Commercial Affairs Department about a month later. More than 10 reports were also lodged by other clients.
Two of the victims The Straits Times spoke to yesterday said they had no problems trusting Lee, whom they also knew as Jon.
The senior manager, who lost about $518,000 in the scam, said Lee was blind in one eye and 'not very articulate'.
'He looked to be in a bit of a pitiful state and all these things made him seem relatively harmless. It gave the impression he was trying to make a decent living.'
The senior manager said he and his family, who also gave Lee money, received several 'small payouts' but these stopped by early last year. They made a police report several months later.
The architect, who was introduced to Lee by a trusted friend from church, said he first met Lee in May 2007 in the con man's office in Maxwell Road.
Lee convinced him to put $35,000 into a scheme and promised to absorb 30 per cent of his monthly trading profits and losses. The architect was sold.
But over the next six months, he never received a single payout but instead was pressured into putting another $200,000 into the investment, the architect said.
'Jon kept saying that this is the right time, the best time, to go into the market and if I don't top up the money, I'll end up losing all my investments,' he said.
He handed $95,000 - a loan from his wife and sister-in-law - to Lee.
He decided to pull out only when Lee told him that he had invested in more lots without seeking his approval.
The last time he showed up at Lee's office in June last year, he saw him being handcuffed and taken away by the police.
'That was when I knew everything is gone, all my life savings. I was so naive,' the architect said.