S’pore Lawyer Took $33 Million from Client & Disappeared

You probably heard this question before: What would you do if you had a million dollars?

Tinier us probably said something more entertaining.

Older us would probably say we’ll save or invest 99% of it straight away so the question would have to be “What would you do if you had $10k (1% of 1M)?”

But that’s still a bit too big an amount to spend frivolously, so a portion goes to the bank or investment, and the question has to be revised again…

Now, the question of the day is what would you do if you actually had 33 million bucks.

Run, because your mug shot is all over the net.

What Happened

This is a lawyer.

And this is 33 million bucks in the form of a 19 square feet bungalow in Singapore.

Now imagine the man disappearing with the bungalow. That’s the kind of fever dream we’re talking about.

Jeffrey Ong Su Aun is a senior lawyer and a managing partner of JLC Advisors. JLC Advisors is a law firm managing the escrow account which held the funds from the client, Allied Technologies, a precision engineering firm.

According to TODAY:

Escrow accounts are a means for solicitors to safe-keep a buyer’s funds during the sale of the property. In Singapore, these are used predominantly by solicitors to control the flow of funds during various stages of the transaction.

Here are the events in chronological order:

23 March: Allied Tech started seeking repayment of the $33M from JLC.

13 May: When Mr Ong sent out his last email. He told Allied Tech that he would be able to repay the money by Friday, 17 May

17 May: The payment didn’t come so Allied Tech’s counsel Rajah & Tann (R&T) Singapore, issued a letter of demand ordering JLC to release the funds by 4 pm on 22 May.

20 May: Mr Ong resigned from Annica Holdings as a non-executive and independent director with immediate effect, citing personal reasons, but there was no exit interview arranged for him.

This is probably when he vanished and stopped answering his messages and emails.

22 May: Before the deadline of the payment at 4 pm, a letter came hand-delivered by a courier to Allied Tech with details of the funds being paid out, but it did not have the “customary markings of an official letter from a law firm”.

According to Business Times, the letter stated that “the funds of S$33.4 million deposited by the company with JLC have been purportedly paid out from the escrow account, and that JLC is still investigating, but has reasons to believe the said funds were paid out on the instructions of its partner Mr Ong and ‘might have been unauthorised’.”

The letter also stated that JLC has “lodged reports with the relevant authorities.”

Allied Tech’s Response

Allied Tech pointed out in the SGX announcement that the amount of S$33.4 million stated in the JLC letter should be about S$33.15 million instead.

They proceeded to send back a letter questioning JLC about “the letter, the details and circumstances of how its funds have gone missing, and the basis for believing that the funds have been paid out.” 

The letter also probed “the whereabouts of Mr Ong and how JLC conducted investigations into this matter as well as seeking documentary evidence and statement of accounts of the escrow funds.”

Action to be Taken

Singapore Exchange Regulation (SGX RegCo), directed Allied Tech to appoint a special auditor to report solely to them on the results of the special audit.

SGX RegCo also objects to “any future appointments of Mr Ong as a director or executive officer of any Singapore listed company”.

For a hell of a lot more detailed account (and truck load’s more jargon to go with it), check out the referenced links.

For now, all we can say is memorise the face above and when you see a guy like that, rob him because he’s going to be a bloody worthy target.

Oh, and turn him in too of course.