Jeffrey Ong implicates Allied Tech executive director and investor in misappropriation case

Singapore

JLC Advisors former managing partner Jeffrey Ong Su Aun named executive director Kenneth Low Si Ren and investor Lin Tah Hwa of Catalist-listed precision engineering firm Allied Technologies as being responsible for the misappropriated funds that grabbed headlines two years ago.

The former lawyer, in his affidavit to support his bail review application, claimed that there were round-tripping and sham transactions involving Allied Tech driven by Mr Low and Mr Lin in 2017 and 2018, with many of these transactions not substantiated by actual flow of funds as they were merely accounting entries to set off against some sale of assets.

He cited a placement of shares in 2017 by Allied Tech, for example, that was reported to have raised S$33.8 million in proceeds - held by JLC in escrow - but S$11.7 million from the first tranche was used instead to pay for the second tranche, resulting in much less than the reported amount of proceeds, the court heard on Friday in Ong's bail review application.

Mr Lin was introduced to Ong as "being one of the largest individual forex speculators in Singapore", and is also said to be connected to the Khoo Teck Puat family through his wife Lucy Khoo Bee Lay, according to Ong's affidavit.

Ong, 43, said the fact there has not been any civil litigation by Allied Tech to recover the escrow funds corroborates his allegations.

Defended by Tan Hee Joek in the criminal proceedings, Ong wants to be bailed out so that he can take civil proceedings to recover the funds and effect restitution.

Ong also alleged that he had borrowed S$4 million to top up the escrow account that was drawn down upon instructions from Mr Low or Mr Lin.

According to him, instructions were allegedly given by either of them to release several sums of the escrowed funds in 2018 and 2019, including US$4 million to Ms Khoo.

The Business Times understands that Ms Khoo has refuted all allegations raised in Ong's affidavit, extracts of which were sent to her pursuant to the Legal Profession (Professional Conduct) Rules as she is a practising lawyer. She has said in the response that the matter is between Mr Low and Ong.

Ong faces 76 charges in total including misappropriation of funds as a lawyer, forgery and cheating, with the total sums amounting to about S$76 million, according to the prosecution. He has been in remand for almost two years.

The prosecution is against the application because Ong is deemed a flight risk. The prosecution will submit on this matter when the hearing continues on April 9.