SINGAPORE: The older brother of a convict in the S$3 billion (US$2.3 billion) money laundering case has been sentenced to 12 months' jail over the receipt of more than S$17 million in criminal proceeds.
The sum was used to buy a luxury bungalow in Sentosa, among other things.
Zhang Ruisheng, a 54-year-old Chinese national, pleaded guilty on Monday (Oct 19) to one count of possessing the benefits of criminal conduct.
His younger brother, Zhang Ruijin, was one of the 10 original criminals arrested over the billion-dollar money laundering case and had been sentenced to 15 months' jail in 2024 for forgery and money laundering.
Ruisheng was in Singapore on a work pass and was purportedly employed by Golden Eagle Family Office as an "investment advisor".
Golden Eagle's directors were his younger brother Ruijin and Ruijin's wife, Lin Baoying. Lin was the sole female among the 10 sentenced in the billion-dollar case, where 10 criminals from China laid roots in Singapore and ran illegal gains through the country's financial system.
She had also been sentenced to 15 months' jail for her role in 2024.
The Commercial Affairs Department (CAD) began investigations against Ruisheng in August 2023 on suspected forgery offences over documents he had submitted to a bank justifying large deposits into his bank account in 2020.
CAD seized a Toyota Vellfire and issued a prohibition order against a property at 69 Cove Drive, Sentosa, which Ruisheng owned in his sole name.
THE BANK ACCOUNT
Ruisheng had a CIMB bank account in Singapore that was opened on Aug 20, 2020, with an opening balance of S$250,000.
His brother and sister-in-law also had bank accounts with CIMB and shared the same relationship manager as Ruisheng.
Between August 2020 and September 2020, Ruisheng received 11 inward transfers from foreign sources totalling about S$17.6 million into his CIMB bank account.
These were from two companies called Beiyin and Han Li.
The large transfers made shortly after the account was opened triggered a transaction monitoring alert within CIMB, and the relationship manager approached Ruisheng seeking more information on the source of funds, in line with the bank's compliance measures.
Around Sep 9, 2020, Ruisheng explained that the transfers were due to the sale of a property in Macau.
He submitted a sales and purchase agreement dated Aug 8, 2020 linked to the purported sale of a commercial property in Macau from himself to a Wang Jian.
The sales and purchase agreement was purportedly signed by Ruisheng and Wang Jian, bearing the company stamp of Beiyin. The agreement stated that the property was sold for HK$87.7 million (S$14.3 million).
Around Sep 23, 2020, Ruisheng submitted a loan agreement to the relationship manager. The agreement purportedly showed that he had loaned S$6 million to Han Li and was due to receive repayments in two tranches of S$3 million within six and 12 months of the agreement date.
He claimed this was a friendly loan, with no interest charged.
The relationship manager conveyed Ruisheng's explanation and documentation to CIMB's financial crime analytics team.
However, the two documents were discovered to be forged.
Ruisheng later admitted that he never had any dealings with the two companies and had never owned any properties in Macau.
He also said he had never even heard of the two companies and claimed he had not signed the documents.
His brother, Ruijin, had been convicted of using the forged sales and purchase agreement as genuine.
MONEY USED ON PROPERTY
Ruisheng had used the money he received to buy property. He used about S$10.4 million to pay for the purchase price and stamp duty for a property at 69 Cove Drive between September and October 2020.
After the purchase was completed, CIMB decided to terminate the banking relationship with Ruisheng based on their review of the transactions and documents provided.
Before the account was closed, Ruisheng issued a cheque to withdraw the remaining balance of almost S$5 million in the account.
He later issued another cheque in March 2021 for the sum of S$2.1 million from another bank to pay for part of the 20 per cent deposit for the purchase of a property at 79 Cove Drive.
The property at 79 Cove Drive was held in the sole name of Ruisheng's other brother, Zhang Ruicai.
Ruisheng later failed to give a satisfactory account for how he came by the S$17.6 million in his CIMB account.
He agreed to have the seized Toyota Vellfire and the 69 Cove Drive property forfeited to the state.
Ruisheng's brother Ruijin had been ordered to forfeit around S$118 million of his assets to the state, about 90 per cent of the assets originally seized by the police.
Deputy Public Prosecutor Jordon Li sought 13 months' jail, comparing Ruisheng's case with his brother Ruijin's.
Mr Li said both brothers had used essentially the same forged document to justify the transfers into their respective bank accounts.
He said money laundering is a serious offence that enables criminals to receive, withhold and enjoy the proceeds of their crimes.
Ruisheng was represented by Mr Julian Tay and Mr Anthony Wong from Lee & Lee.
Mr Tay pointed to his client's "limited role" in the criminal enterprise and the "significant" surrender of his assets.
"At the very minimum, it evinces his remorse," said the lawyer, adding that his client was a "mature first-time offender" who otherwise led a "law-abiding life".
For possessing property that represents the benefits of criminal conduct, Ruisheng could have been sentenced to a maximum of three years' jail, a fine of up to S$150,000, or both.
As his charge contained multiple instances, the maximum penalties were doubled.