Why crooks cannot sue for 'fruits of their fraud'

If two crooks sue each other in court for their share of the loot, it is likely neither will receive help from the courts as the law recognises the popular saying that “two wrongs don't make a right”.

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This doctrine of illegality was recently highlighted in a High Court case in Singapore, which involved a company suing its marketing manager for using a series of fake business transactions to channel money to herself and her accomplices.

The court then referred to a landmark decision of the Court of Appeal in 2020 that involved a man who colluded with his then employee to siphon money from his own company.

In that case, the employee had pocketed over $1.6 million while she was working for a marine company and used the money to buy insurance policies and properties for herself.

When she was sued by the company, she claimed that her action was done with the express permission of the company’s owner and managing director, who instructed her on how to do this and even signed the cheques to withdraw the funds.

She said some of the money was paid as a sort of commission to her and she was entitled to spend the money as she thought fit.