Man charged over alleged hydroponics, aquaponics farming investment scam

A MAN was charged in court over an alleged hydroponics and aquaponics farming investment scam.

Oommen Mathews, director and shareholder of investment companies Reign Gainers and Capital Nation, was charged with 55 counts of offences under the Companies Act and Securities and Futures Act on Thursday (May 4).

He had allegedly offered more than 60 people investments in hydroponics and aquaponics farming promoted by the companies. The investments promised returns of up to 20 per cent per annum. However, the police said that the two companies had no business activities to generate the promised returns, and that Mathews had carried on the business of both companies for a “fraudulent purpose” between 2015 and 2017.

Mathews had collected more than S$3 million from the investors, they added.

The police also alleged that Mathews had structured some of the investments in the form of bonds and offered them to investors without the requisite prospectus, and that he lodged a document with the Accounting and Corporate Regulatory Authority (Acra), despite knowing it to be false or misleading.

For fraudulent trading, an offender can be jailed for up to seven years and fined up to S$15,000, or both.

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For making offers of securities without a prospectus, an offender can be jailed for up to two years and fined up to S$150,000, or both.

For deliberately lodging a false or misleading document with Acra, an offender can be jailed for up to two years and fined up to S$50,000, or both.