The chief operating officer of a listed company has been sentenced to five and a half years in jail after misappropriating more than S$2.5 million worth of company assets over approximately a year.
Richard Siua Cheng Foo, a 54-year-old Singaporean, pleaded guilty to one charge of criminal breach of trust as a key executive of the company. Four other charges were taken into consideration during sentencing. The company involved dealt in mobile phones and accessories.
The court heard that Siua ordered employees to draw down from company marketing funds and release mobile devices to him. These items were later sold for his own profit. Across all charges, the total value of misappropriated assets exceeded S$2.5 million, equivalent to approximately US$1.95 million.
Background of the Case
Siua was the chief operating officer of MDR Limited, a company listed on the mainboard of the Singapore Exchange. At the same time, he also held positions as chief executive officer and registered director of several MDR subsidiaries. The group was involved in distributing and selling mobile handsets and accessories.
From November 2020, Siua began misappropriating company phones after becoming addicted to gambling. He realised that his employees trusted him and did not question his instructions or monitor how the phones were used.
Between 2020 and 2021, Siua took a total of 4,057 units of company assets valued at around S$2.5 million. He instructed staff to withdraw mobile devices by using marketing funds that were meant to support official campaigns. As CEO of the subsidiaries, he had full authority over how these funds were used.
He also directed employees to release devices and accessories from the company warehouse that were meant for promotional activities. Once the items were handed over, Siua sold them for personal gain with the help of a friend who was a director of another mobile phone business. His friend took a portion of the sale proceeds, which was used to offset loans Siua owed him.
How the Offences Were Discovered
In December 2021, after nearly exhausting the funds under his control, Siua approached MDR’s chief executive officer to ask for a company loan. This raised suspicions, and the CEO asked the finance department to review Siua’s use of group finances.
The review revealed a sharp increase in marketing expenses for 2021 compared to previous years. The finance team also found that Siua had requested unusually large quantities of mobile devices to be released.
When confronted at a board meeting, Siua admitted to his actions. A police report was made, and he later surrendered to the authorities. None of the misappropriated devices were recovered, and no restitution was made.
The prosecution sought between five-and-a-half and six years’ jail, pointing to the high value of the items taken, the repeated nature of the offences, and the trust Siua had abused.
Siua’s lawyer said his client had served the company for two decades and added that “it’s very unfortunate that after 20 years, he fell into the gambling addiction that led ultimately to him committing the offences”. The lawyer also said Siua cooperated “wholeheartedly” with authorities. He is now an undischarged bankrupt.
Under the law, criminal breach of trust by a key executive carries a jail term of up to 20 years and a fine.
