Ng Yu Zhi’s billion-dollar nickel trading was ‘pure fiction’, prosecution alleges

Ng Yu Zhi’s billion-dollar nickel trading was ‘pure fiction’, prosecution alleges


THE nickel investment scheme of businessman Ng Yu Zhi that promised highly attractive profits from trading in the metal was “a pure fiction” that swindled 947 investors of almost S$1.5 billion, alleged the prosecution in Day 2 of the trial in the High Court on Wednesday (Nov 27).

The 37-year-old is contesting 42 charges of fraudulent trading, cheating, forgery, criminal breach of trust and money laundering, with another 63 in connection of the alleged investment fraud being stood down in this proceeding.

Calling Ng the mastermind of the elaborate investment scheme that took place between February 2016 and March 2021 touting buying physical nickel at a significant discount and selling at market price for a profit, Deputy Public Prosecutor (DPP) Gordon Oh alleged that his companies Envy Asset Management and Envy Global Trading had never bought nor sold the metal.

The companies had never even negotiated any agreement with the Australian mine which they supposedly purchased from, charged DPP Oh as he delivered the prosecution’s opening statement on Wednesday.

Envy Asset Management and Envy Global Trading instead paid earlier investors with the funds invested by subsequent investors, resulting in substantial financial losses for the investors when the fraud came to light, Judicial Commissioner Christopher Tan heard.

Ng was said to have forged several key documents so as to spin a convincing tale that the nickel investment scheme was supported by physical nickel trading.

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He derived tremendous personal benefit from the scheme, siphoning S$481.7 million that went to his accounts, and funded his lavish lifestyle and purchases that included expensive works of art, jewellery, real estate and luxury cars, the court heard.

One of the investors, Shim Wai Han, testified on Wednesday as first prosecution witness that she learnt about Envy’s investment scheme through a friend and met up with Ng at Oxley Towers in 2018. Ng introduced himself as the managing director and owner of Envy Asset Management.

Shim, who turns 51 soon, had allegedly parted with S$955,000 between November 2020 and January 2021 for the investment scheme. The wealth management company Envysion Wealth Management, of which she was the ultimate owner and former chief executive, was cheated of about S$47.4 million.

Shim told the court that she heard from Ng that he came across the nickel trading opportunity in 2016 when he was working as an auditor at KPMG. BHP Billiton, one of the professional services firm’s clients, aborted an agreement with Poseidon Nickel after nickel prices plunged.

Poseidon fell into distress and Ng was thus able to purchase nickel on the cheap. Subsequently, Ng was asked by the miner to commit to regular purchases. As delivery was not instant, he needed better cash flow for the trade and thus opened up the opportunity to external investors.

Shim learnt that Envy had been put on the Investor Alert List by the Monetary Authority of Singapore (MAS). She told the court that she was initially very concerned because an in-house sub-fund of Envysion was supposed to invest in Envy.

Her concerns were allayed after Envysion’s compliance officer told her that companies on the alert list are those that lack the required licence for investment activities, but Ng had shown her a legal opinion that said no licence is needed for dealing with accredited investors.

Shim, who will continue her testimony in the afternoon, is herself facing five charges, including making false statements in connection with the provision of a financial advisory service, and forwarding e-mail correspondence between the MAS and Envysion to Ng.



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