Billion-dollar money laundering case: Man who conspired with Su Haijin to lie to IRAS gets jail
A false declaration of revenue and profit figures made by Wang Junjie in one filing for a company linked to Su Haijin resulted in it having an estimated tax liability of zero.
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SINGAPORE: A man who conspired with one of the 10 offenders in the S$3 billion (US$2.33 billion) money laundering case to lie to the Inland Revenue Authority of Singapore (IRAS) about the state of a company's books was sentenced to jail on Thursday (Jul 16).
Wang Junjie, a 43-year-old Singaporean, was jailed for 32 weeks and disqualified from being a director of any company for five years.
He had earlier pleaded guilty to a charge of conspiring with Su Haijin to make false representations to IRAS about the revenue, gross profits and trade receivables of Su Haijin's company, Yihao Cyber Technologies.
He also admitted to a charge of failing to act honestly as a director of Yihao Cyber Technologies, by falsifying accounts and forging contracts.
Another 13 charges were taken into consideration.
While Wang's lawyer argued that his client made no material gains other than his professional fees as a corporate service provider, the judge said it was not about the amount but Wang's conduct in the position he was in.
"You know, the way we work in Singapore, they want to make it as easy, as convenient for most businesses," said District Judge John Ng.
"We are all trying to comply with the regulations which the (Accounting and Corporate Regulatory Authority) is trying to make as plain and easy ... but actually, the trust level has to be high," he said.
He explained that once trust is broken and the system is abused, "we have to come down hard", and a heavy punishment is in order.
THE CASE
Wang worked for companies where Su Haijin and co-accused Su Baolin were directors and helped create the appearance that one of the companies was profitable despite it having no legitimate business activity in Singapore.
Su Baolin, a Cambodian national, and Su Haijin, a Cypriot national, were among the 10 offenders convicted and jailed in the S$3 billion money laundering case, the largest such operation uncovered in Singapore and believed to be one of the largest globally.
Wang was employed by his own company, LW Business Consultancy, as a corporate service provider from 2018 to 2023.
The consultancy provided clients with corporate secretarial, accounting and taxation services. It also helped clients apply for and renew employment and dependent passes.
From 2018 to 2023, Wang acted as the corporate secretary and director of Xinbao Investment Holdings, a company of which Su Baolin was a director.
He was also company secretary of Su Haijin's company Yihao Cyber Technologies between 2018 and 2023, helping prepare financial statements for certain years.
Yihao Cyber Technologies appeared to develop software and applications, but in reality did not have a legitimate business operation in Singapore.
Wang also helped Su Haijin renew his employment pass and his family's dependent passes.
From 2020 to 2022, Wang and Su Haijin conspired to submit false information to IRAS about the company's finances.
Wang filed tax returns that falsely reflected the company's revenue, gross profits and trade receivables, despite knowing that the figures were not derived using proper accounting methods.
In one filing made in October 2022 for the company's 2021 financial year, Wang declared that Yihao Cyber Technologies had revenue of S$804,969 and gross profits of the same amount.
He indicated that the company's total income or loss before donations was S$192,924, and the total income or loss after donations was negative S$102,700. The figures resulted in an estimated tax liability of zero.
The false representations to IRAS were intended to make Yihao Cyber Technologies appear profitable, as Su Haijin believed this would improve his chances of obtaining permanent residency in Singapore.
Wang also made false representations to the Ministry of Manpower to support Su Haijin's employment pass renewal application.
The prosecution on Thursday sought eight to 10 months' jail for Wang, based on his culpability.
They said he did not simply act as a corporate service provider or nominee director but used these positions to aid the Sus in committing offences.
They said he played a "pivotal role" in the commission of the offences through actions such as discussing false financials and how to manipulate figures with them.
Wang's lawyer, Mr Wee Pan Lee, sought three to four months' jail instead, saying his client did not gain materially other than what he earned professionally in terms of corporate service provider fees.
In the years Wang served the companies and the two Sus, he earned an average of S$1,000 to S$1,200 per month for each company, said Mr Wee.
Su Haijin and Su Baolin were each sentenced to 14 months' jail in April 2024.
For conspiring to fraudulently make false representations to IRAS, Wang could have been jailed for up to 20 years and fined.
For failing to act honestly as director of a company, he could have been jailed for up to 12 months or fined up to S$5,000.
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