|Chan Sek Keong, Chao Hick Tin and V K Rajah's ruling on appeal from |
investors of DBS High Notes 5 related to Lehman Brother
Boomberg reported Koh Seah Wee was sentenced to 22 years in jail and Lim Chai Meng to 15 years for their roles in cheating Singapore government agencies of S$12.5 million ($10 million) in the city’s biggest public-sector fraud since 1995.
Justice Tay Yong Kwang sentenced the men, who faced a maximum of 10 years in jail for each cheating charge. Koh was accused of defrauding the land authority of S$12.2 million......
The two men submitted false invoices through various shell companies set up by five accomplices for fictitious information technology services and goods at the land agency,
Lehman Brothers and Koh, the differences
The differences between Lehman Brothers' and Koh Seah Wee are, Lehmans' Scam were considerably larger, more flagrant by at least 1000 times.
Monies were being transferred to Lehman Brothers' employees as form of bonuses, amounting to hundreds of billions of dollars, through all sorts of scams involving setting up shell companies, creative accounting, rampant gambling especially using derivatives.
Koh had supervisors throughout his career in IDA. Many fraudulent contracts were probably signed by his bosses as well. Does that mean that those contracts are legally binding?
In contractual law, a contract may be voided on misrepresentation
According to wikipedia, contract may be voided on ground of misrepresentation . Misrepresentation means a false statement of fact made by one party to another party and has the effect of inducing that party into the contract. For example, under certain circumstances, false statements or promises made by a seller of goods regarding the quality or nature of the product that the seller has may constitute misrepresentation. A finding of misrepresentation allows for a remedy of rescission and sometimes damages depending on the type of misrepresentation.
Fraud in inducement focuses on misrepresentation attempting to get the party to enter into the contract. Misrepresentation of a material fact (if the party knew the truth, that party would not have entered into the contract) makes a contract voidable.
By on an investigation report, MAS under Heng Swee Keat has already charged DBS of misleading its client on the risk of Lehman brothers' notes [see this]. The products were also being handled by untrained or unqualified staff who did not fully understand the extend of risk in the product.
Whatever the outcome, those bankers are now sleeping soundly with their bonuses. The society is going to see them as talents because they are making monies.
|About S$8.2 million in assets have been |
seized from Koh Seah Wee