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 in 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 the 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 were used instead to pay for the second tranche, resulting in much less than the reported amount, the court heard on Friday in Ong's bail review application.
The 43-year-old Ong stated that the fact there has not been any civil litigation by Allied Tech to recover the funds corroborates his allegations. Defended by Tan Hee Joek in the criminal proceedings, Ong wanted to be bailed out so that he could take out civil proceedings to recover the funds against those he has implicated in his affidavit.
Stressing through his lawyer that he has not personally benefited from the offences and has not been dishonest, 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, the de facto directors and the controlling minds of Allied Tech.
Ong faces 76 charges in total including misappropriation of funds as a lawyer 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 for bail to be granted to Ong as he is deemed a flight risk. The prosecution will submit on the application when hearing continues on April 9.