SINGAPORE – The police collected more than $ 27 million in revenues in Singapore, involving China's largest online peer-to-peer lender Ezubao, which turned out to be a large-scale Ponzi plan.
The money was returned to China this month after a Beijing court convicted 26 people of fraud and other crimes.
The Singapore Police Department of Commercial Affairs in May 2016 assisted the Chinese Department of Economic Crime Investigation (ECID) to trace assets in Singapore for their investigations into Ezubao.
The Ponzi plan included approximately 1.15 million investors with an estimated loss of 38 billion Chinese yuan (S $ 7.5 billion).
CAD found that more than $ 27 million in revenue was transferred to Singapore and informed the Chinese authorities, the Singapore police said in a statement on Tuesday (August 21).
Together with the Embassy of China in Singapore, CAD and ECID subsequently set up a joint investigation into the case in both countries.
In May 2016, CAD found that no local entities were involved in money laundering activities in Singapore.
The 26 people involved in the Ponzi plan were convicted for their crimes in a Beijing court to between three years in prison and life imprisonment.
The seized funds have been returned to China to facilitate restitution to individuals, in accordance with the Chinese legal framework, according to the statement.
CAD Director David Chew said the case is evidence of the deployment of the Singapore police in working with foreign counterparts to detect and discourage transnational crime, as well as to preserve the integrity of the Singapore financial system.
"The strong ties between the police services of China and Singapore are essential to ensure that our financial system is not abused by criminals," he said.
In April, a former director of a Singapore law firm was fined $ 10,000 for failing to notify the authorities that its wealthy customer & # 39; could be linked to the Ponzi plan.
Kang Bee Leng 56, who was managing director of Sterling Law Corporation, had done transfer work for Zhang Min, former president of Yucheng International Holdings, whose company launched Ezubao.
Zhang bought a home in Sentosa Cove worth $ 23.8 million at the time, but was held by the Chinese authorities in December 2015.