Billion-dollar nickel scam: Liquidators score win to recoup over $900m

Sum to be recovered from alleged fraudster's associates for their role in Ponzi scheme

- Grace Leong

The liquidators for three companies of Ng Yu Zhi, the alleged nickel-trading fraudster at the centre of a $1.5 billion nickel trading scam, scored a legal victory on July 29 to recover more than $900 million from nine former directors and employees for their role in Singapore's biggest Ponzi scheme.

In 2021, the liquidators of Envy Asset Management (EAM), Envy Global Trading (EGT) and Envy Management Holdings (EMH) sued Ng, former directors Lee Si Ye and Ju Xiao, and former employee Cheong Ming Feng.

Court documents state that Ng's three companies received about $1.09 billion, US$277.2 million (S$357 million) and €980,000 (S$1.4 million) in investor funds, supposedly for nickel trading.

Of those sums, $593 million, US$192.2 million and €880,000 remain outstanding to investors.

In a 180-page judgment issued on July 29, the liquidators, who are represented by lawyers David Chan, Daryl Fong and Lin Ruizi of Shook Lin & Bok, were awarded damages after Ms Lee, Mr Ju and Mr Cheong were found to have breached their duties. They also received damages for fraudulent trading by Mr Ju.

The trio were also ordered to pay back about $27 million in commission payments, profit sharing, bonuses, CPF payments, directors' fees and dividends.

The High Court, however, ruled that the July 29 judgment is "not binding" on Ng, who was made bankrupt in December 2022.

Civil proceedings against the former managing director of EGT and EAM stopped as a result.

Ng's criminal trial on 42 charges ended on July 7 after he opted not to take the stand.