Former Sakae Holdings director gets jail for misappropriating S$15.8 million, lying in High Court

Former Sakae Holdings director Andy Ong Siew Kwee, 56, was sentenced to 10½ years in jail on August 7 for misappropriating $15.8 million and participating in a fraud involving forged documents. The conviction followed a trial in May where Ong was found guilty of criminal breach of trust, abetting forgery, and intentionally giving false evidence. His sentence came after a lengthy legal process that included multiple charges and appeals. Ong, along with two associates, Ho Yew Kong, 56, and Chua Wei Tat, 41, were all implicated in the scheme. Ho served as a director at Griffin Real Estate Investment Holdings (GREIH), a joint venture entity linked to Sakae Holdings, while Chua worked as an asset manager for Gryphon Capital Management, a firm associated with Ong. Both Ho and Chua received 12-month prison terms for providing false evidence during the trial. Their convictions were tied to the same fraudulent activity that led to the misappropriation of funds. The case began in 2009 when Ong, a majority shareholder, director, and founder of ERC Holdings, approached his longtime friend Douglas Foo, then managing director of Apex-Pal International, to co-invest in a joint venture aimed at acquiring the majority stake in a commercial building located at North Bridge Road, known as the North Bridge Commercial Complex or Bugis Cube. This joint venture eventually evolved into Sakae Holdings. Through ERC Holdings, Ong held interests in several entities, including ERC Institute, ERC International, and ERC Unicampus. As part of the scheme, Ong directed his associate, Ong Han Boon, to create a fake lease agreement between GREIH and ERC Institute. This document, later referred to as V5 in court records, was backdated to March 2012, the time of the ERC Institute careers fair. The false lease was designed to appear as though GREIH had leased levels three to six of the Bugis Cube to ERC Institute. According to court testimony, Ong Han Boon then instructed Chua Wei Tat to prepare a similar lease agreement, which was also backdated to March 2012. The prosecution presented evidence showing that on September 13, 2012, $15.8 million was transferred from GREIH to two of Ong’s affiliated companies, ERC International and ERC Unicampus. The funds were claimed by Ong as “compensation” owed by GREIH to ERC Institute, based on the fabricated lease agreement. The defense argued that Ong’s position within the company did not justify the severity of the sentence, asserting that the funds were repaid voluntarily. However, the prosecution maintained that the amount was objectively high and that Ong had shown no remorse. During the trial, Ong initially gave a version of events that contradicted later statements, leading the prosecution to argue that he had undergone a “complete about turn.” The judge dismissed this characterization as hyperbolic and found Ong’s revised testimony to be untrustworthy. The court also noted that Ho and Chua’s false evidence was intended to support Ong’s narrative, although their level of culpability was deemed lower than Ong’s. All three individuals, Ong, Ho, and Chua, are planning to appeal their convictions and sentences. Additionally, they face multiple pending charges that will be addressed separately. Ong had previously requested permission to travel abroad to handle business matters, but the court denied the application, citing an increased risk of flight following his sentencing. The case highlights the complexities of corporate fraud and the legal consequences of manipulating financial records to misappropriate funds. It underscores the role of trust in business relationships and the potential for abuse when such trust is exploited. As the appeals proceed, the legal community will continue to monitor how the courts address these complex issues of accountability and justice.