Man who almost duped CPF board??
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Man faces 107 charges of duping CPF
By Chong Chee Kin
A MAN who allegedly duped the Central Provident Fund Board into releasing his money early was brought before a district court yesterday.
Chen Gin Seng, 49, was said to have bought shares with his own money from the stock market and then sold them to himself at a higher price - with money from his CPF contributions.
While his CPF account shrank, the money went into his own pocket - money which he could not have otherwise withdrawn until the age of 55.
He is the third person to be brought to court for such offences.
He faces 107 charges - the highest number to date for such offenders.
Yesterday, the court heard he had allegedly made more than 100 such transactions between April last year and February this year using trading accounts he had with Kim Eng Securities and Lim and Tan Securities.
It was not mentioned, however, just how much he allegedly managed to squirrel out of his CPF account.
He allegedly bought and sold shares of mainboard-listed construction companies Lum Chang Holdings and Shining Corporation over 10 months.
A stockbroker explained how the scam could have been carried out.
For example, a person could buy $30,000 worth of shares with his own money from his cash trading account and then sell it for $50,000 or more to himself, with money from his CPF account. He might make paper losses in the CPF account but the money would have gone into his own pocket.
The broker described it as a 'risky and foolish way' to get money. 'It can be easily uncovered, given how the authorities like the Singapore Exchange monitor the transactions that go on,' he said.
The moment the same name appears on both the buyer and seller accounts,'alarm bells would ring'.
'It may not be share rigging, but it doesn't take a genius to figure out that there is something wrong when you see one person buying and selling shares between his accounts,' he said.
Chen did not enter any plea yesterday. He is scheduled to return to court for a pre-trial conference on Nov 29. If convicted, he could be jailed up to seven years and fined up to $250,000.
Such a scam first surfaced in 2001 when Mr Chen Yew Choon was fined $60,000 after admitting to three charges of fraud. Two similar charges were taken into consideration.
This year, on Sept 22, company director Eric Tan, 45, was fined $7,000 after he admitted he made similar transactions with his own accounts on 37 occasions. -
Man charged for CPF scam
ANOTHER man was charged yesterday on 107 counts of buying shares using cash and selling them to himself at higher prices, to deceive the Central Provident Fund (CPF) Board into releasing his money earlier.
Chen Gin Seng, 49, had apparently bought shares of Lum Chang Holdings Limited, Pokka Corporation, PNE Industries and Shining Corporation using cash via trading accounts with brokers.
Then, he sold the shares to himself at higher prices, paid for through his CPF Investment Scheme (CPFIS) account. He also sold the shares from his CPFIS account to his own self at lower prices. He gained the difference in price.
These acts, which took place between April 19 last year and Feb 15 this year, was to get the Board to release money he would otherwise obtain only when he reached 55.
Chen was charged under the Securities and Futures Act, which carries a maximum fine of $250,000 or a jail term of up to 7 years, or both. He was not offered bail.
Earlier, company director Eric Tan, 45, was fined $7,000 after he pleaded guilty to 11 charges of contravening the CPF Act.
He had bought and sold shares to himself, in the process pocketing $6,855 from his CPF account.
ANOTHER man was charged yesterday on 107 counts of buying shares using cash and selling them to himself at higher prices, to deceive the Central Provident Fund (CPF) Board into releasing his money earlier.
Chen Gin Seng, 49, had apparently bought shares of Lum Chang Holdings Limited, Pokka Corporation, PNE Industries and Shining Corporation using cash via trading accounts with brokers.
Then, he sold the shares to himself at higher prices, paid for through his CPF Investment Scheme (CPFIS) account. He also sold the shares from his CPFIS account to his own self at lower prices. He gained the difference in price.
These acts, which took place between April 19 last year and Feb 15 this year, was to get the Board to release money he would otherwise obtain only when he reached 55.
Chen was charged under the Securities and Futures Act, which carries a maximum fine of $250,000 or a jail term of up to 7 years, or both. He was not offered bail.
Earlier, company director Eric Tan, 45, was fined $7,000 after he pleaded guilty to 11 charges of contravening the CPF Act.
He had bought and sold shares to himself, in the process pocketing $6,855 from his CPF account. ANOTHER man was charged yesterday on 107 counts of buying shares using cash and selling them to himself at higher prices, to deceive the Central Provident Fund (CPF) Board into releasing his money earlier.
Chen Gin Seng, 49, had apparently bought shares of Lum Chang Holdings Limited, Pokka Corporation, PNE Industries and Shining Corporation using cash via trading accounts with brokers.
Then, he sold the shares to himself at higher prices, paid for through his CPF Investment Scheme (CPFIS) account. He also sold the shares from his CPFIS account to his own self at lower prices. He gained the difference in price.
These acts, which took place between April 19 last year and Feb 15 this year, was to get the Board to release money he would otherwise obtain only when he reached 55.
Chen was charged under the Securities and Futures Act, which carries a maximum fine of $250,000 or a jail term of up to 7 years, or both. He was not offered bail.
Earlier, company director Eric Tan, 45, was fined $7,000 after he pleaded guilty to 11 charges of contravening the CPF Act.
He had bought and sold shares to himself, in the process pocketing $6,855 from his CPF account. ANOTHER man was charged yesterday on 107 counts of buying shares using cash and selling them to himself at higher prices, to deceive the Central Provident Fund (CPF) Board into releasing his money earlier.
Chen Gin Seng, 49, had apparently bought shares of Lum Chang Holdings Limited, Pokka Corporation, PNE Industries and Shining Corporation using cash via trading accounts with brokers.
Then, he sold the shares to himself at higher prices, paid for through his CPF Investment Scheme (CPFIS) account. He also sold the shares from his CPFIS account to his own self at lower prices. He gained the difference in price.
These acts, which took place between April 19 last year and Feb 15 this year, was to get the Board to release money he would otherwise obtain only when he reached 55.
Chen was charged under the Securities and Futures Act, which carries a maximum fine of $250,000 or a jail term of up to 7 years, or both. He was not offered bail.
Earlier, company director Eric Tan, 45, was fined $7,000 after he pleaded guilty to 11 charges of contravening the CPF Act.
He had bought and sold shares to himself, in the process pocketing $6,855 from his CPF account. -
HOORAY!
This is why I say CPF failed. -
Can we list this in the Guiness Book of World Record:
singapore - the only country in the world that fine its citizens when they transfer money to themselves! -
Hey, Cindy, don't you know it's a crime if you use your own money?
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play with own money also can get into trouble. and worse the fine is enough to wipe out the cpf and guess what, thats how gov become a little bit richer.
The fine cannot be so big because its his own money. The penalty should be on him for the act. Even big bosses who cheats own listed company never gets such heavy fine with shareholders money. Its like big bully small. -
basically he sold from his account to his account. what if the sells from his accomplice's account to his account and later vice verses?
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thats marriage trade. have to go through a broker.Originally posted by Ito_^:basically he sold from his account to his account. what if the sells from his accomplice's account to his account and later vice verses?
not illegal. -
Your CPF will 1. provide you with a retirement income to meet your basic needs in old age. Members are encouraged to supplement their retirement income with their personal savings.
2. To ensure that you have a roof over your head when you retire, map out your finances carefully when you buy a home. Buy a home that you can afford so that your home will be fully paid-up when you retire.
3. Saving for future medical expenses is important as the need for medical care increases significantly as you grow older. Use your Medisave wisely by staying in affordable wards when hospitalised. You should also stretch your healthcare dollar by buying medical insurance such as MediShield. This will help you to meet the treatment expenses for prolonged or serious illnesses.
For more information. http://www.cpf.gov.sg
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doesn't sound like hes doing anythign wrong if anything go and find those pple who created the loophole
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KUM lAN
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So if a driver got involved in a car accident because of his reckless driving should blame the authority for not levelling the road properly.Originally posted by hisoka:doesn't sound like hes doing anythign wrong if anything go and find those pple who created the loophole
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but....Originally posted by TooFree:So if a driver got involved in a car accident because of his reckless driving should blame the authority for not levelling the road properly.
if a rich driver.. driving his car home.. then crushed into his own BMW park in his carpark which he plan for use retirement use.... so that is an offence too???
government say they keep ur BMW first coz they scared u crush it then no car for retirement.... then they drive it away for their own use... and just give u small small amount for "rental"
so which one sound more like an offence???
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Then you need to refer to my reply at 4 replies above before this one.Originally posted by I-like-flings(m):but....
if a rich driver.. driving his car home.. then crushed into his own BMW park in his carpark which he plan for use retirement use.... so that is an offence too???
government say they keep ur BMW first coz they scared u crush it then no car for retirement.... then they drive it away for their own use... and just give u small small amount for "rental"
so which one sound more like an offence??? -
talk darling..if like that.. then u you need to refer to my reply.. replies above before this one.Originally posted by TooFree:Then you need to refer to my reply three 3 replies above before this one. -
Very funny. My reply holds more water because it abide the law.
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i believe a bucket will hold more water lehOriginally posted by TooFree:Very funny. My reply holds more water because it abide the law. -
Only in Singapore can you be hauled up in court for cheating yourself out of your own money, which is pretty much what happened in all these cases.
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Such ingenuity should not be punished but rather it should be applauded.
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is it.Originally posted by dragg:thats marriage trade. have to go through a broker.
not illegal.
ill keep dat in mind.
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when it comes to the CPF there are a lot of 'only in singapore'.Originally posted by av98m:Only in Singapore can you be hauled up in court for cheating yourself out of your own money, which is pretty much what happened in all these cases. -
thats why we are "Uniquely Singapore"Originally posted by dragg:when it comes to the CPF there are a lot of 'only in singapore'. -
the rules are all set against us.
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why do you think they cut tax for high paying salaries and make everyone , low income job, no job, students, children, aunties, uncles, grandfather, grandma pay 5% GST consumption tax when they are below the tax bracket.
Why sacrifice the poor to help the rich save 5% of their tax? Who are the ones benefitting reduction in income tax.
Its the influencial making the influence. The policy makers don;t have to even think about the cpf as they have so high salary, but average man everyday look at cpf , starving or need money for children education but cannot touch it. -
the tax cut for the higher income group is ridiculous.