Parquet company founder gets more jail time for cheating banks

The founder of a parquet company, who was initially sentenced to three years' jail for cheating banks into disbursing $2 million in loans to a timber supplier, will now have to serve eight more months in prison.

- Selina Lum

On Feb 19, the High Court handed down a 44-month jail term to Jason Sim Chon Ang, following an appeal by the prosecution against his initial sentence.

Tjioe Chi Minh, who was the managing director of timber company Tati Trading at the time of Sim's offences, was initially cleared of the charges he faced.

But Tjioe has now been sentenced to 30 months' jail, after the High Court also allowed the prosecution's appeal against his acquittal.

Their current ages were not stated in the High Court judgment.

Sim was the founder and chief executive of Jason Parquet Specialist (JPS) at the time of the offences between 2012 and 2015.

JPS was a wholly owned subsidiary of public-listed company Jason Parquet Holdings. JPS was liquidated in 2016, while the parent company changed its name to Revez Corp in 2019.

Tati Trading was one of JPS' biggest suppliers.

JPS had invoice financing facilities with three banks, which allowed the parquet company to obtain loans to pay its suppliers after the purchase and delivery of goods.

When JPS applied to draw down on the financing facilities, it had to provide an invoice and delivery order from its suppliers to the banks as supporting documents.

After the application is approved, the banks disburse money directly to the suppliers.