Man, 60, jailed for cheating banks

He created fictitious invoices and delivery orders, using them to apply for financing of older invoices.

Eric Lee Chin Khuay, 60,made 117 such fraudulent applications between May 2008 and July 2010, amounting to $15,383,190.

He was yesterday jailed 18 months for cheating the banks.

Investigations revealed that during this period, the company of which he was director and sole shareholder held trade financing facilities with three banks: DBS, OCBC and Standard Chartered Bank.

All invoice financing applications were made by Lee.

He created documents purportedly issued by four different companies.

Three of these companies were run by his long-time friends,who allowed him to utilise their bank accounts to credit funds back to his own company, security services provider Gatekeeper Resources (GK).

For example, Lee told Mr Danny Tan, his friend of 18 years and sole signatory of an OCBCcurrent account held by Charisma Trading Services (CTS), that he did not want GK's suppliers to know who the real buyer of the goods were.

So he would inform MrTan when funds had been credited into CTS' bank account, and would instruct Mr Tan to issue a cheque of the same amount back to GK.

But Lee did not tell Mr Tan about the source of funds.

Apart from documents with the four companies, Lee even created nine fictitious sales agreements between GK and various companies in Thailand.

Lee admitted that the fictitious applications were so he could have funds to pay the banks for financing that was due.

Raided The Commercial Affairs Department raided GK's offices on October 8, 2010, after which Lee terminated all trade financing facilities with the three banks.

Although more than $15.3 million was disbursed due to Lee's criminal actions, Deputy Public Prosecutor Christopher Ong yesterday noted that Lee has made full restitution to the banks involved.

This article was first published in The New Paper.

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