Lau Lee Sheng, a former executive director of Envy Companies, testified on April 1, 2025, in the trial of Ng Yu Zhi, who is accused of orchestrating a $1.46 billion nickel trading scam in Singapore.

Key details from the testimony:

Lau and his family invested over $40 million in the scheme ($26 million from Lau himself, $15-16 million from his father)
His mother invested $500,000 of her life savings and was later diagnosed with Stage 4 cancer
By February 2021, Lau was managing over $200 million from 30 investors, many of whom were family members
The scheme collapsed when Ng was arrested in 2021
Liquidators are now seeking to recover over $17 million from Lau, mainly claimed commissions

About the scam:

It attracted $1.46 billion from 947 investors over six years
Ng allegedly claimed to buy nickel at a discount from an Australian mining company and sell it for profit
No actual nickel trading occurred; it operated as a Ponzi scheme
The scheme began through Envy Asset Management in 2016 and later moved to Envy Global Trading after regulatory scrutiny

Ng faces 108 charges, including cheating, forgery, criminal breach of trust, money laundering, and fraudulent trading. The trial, which began in November 2024, is proceeding with 42 of these charges.

Details of the Nickel Trading Scam

Based on the article, here are the specific details about how the scam operated:

Basic structure: Ng Yu Zhi claimed to run a nickel trading business where he would purchase nickel at a discount from an Australian mining company and then sell it for substantial profits.
Investment vehicles: The scheme operated through two companies – first Envy Asset Management (from February 2016), then Envy Global Trading (after EAM was placed on Singapore’s investor alert list in March 2020).
Classic Ponzi mechanics: According to prosecutors, no actual nickel was bought or sold. Earlier investors were paid with funds from newer investors, creating the illusion of legitimate returns.
Trust building: Ng built trust with initial investments like the oil and gas company Seadrill, where Lau received 5-6 times his $50,000 investment. This likely established credibility for the larger nickel scheme.
Document manipulation: When questioned, Ng showed fake or manipulated documents, including bank statements, to convince investors of the scheme’s legitimacy.
Psychological tactics: When confronted by Lau about concerns, Ng used emotional manipulation, saying he felt “hurt” by the confrontation – described by Lau as “guilt-tripping.”

Prevention Methods

To protect yourself from similar investment scams:

Verify business operations: Demand proof that the actual business transactions (like buying and selling nickels) are taking place. Request documentation from third parties, not just the investment company.
Research regulatory status: Check if the investment company is correctly registered with financial authorities. In this case, EAM was placed on Singapore’s investor alert list – a warning sign that was overlooked.
Be skeptical of guaranteed high returns: Any investment promising unusually high returns with little risk should trigger immediate caution.
Diversify investments: Never put all your assets into a single investment vehicle, no matter how promising it seems.
Seek independent advice: Consult with independent financial advisors before making significant investments.
Watch for limited transparency: Be wary when company operations lack transparency or when access to financial accounts is restricted (as highlighted by the co-founder not having access to bank accounts).
Be cautious with relationships: Don’t let personal relationships (like Lau’s school connection with Ng) cloud your judgment about investment decisions.
Research the industry: Understand the basics of the industry you’re investing in. Knowledge about the nickel market might have revealed inconsistencies in Ng’s claims.

Singapore-Specific Prevention Methods for Investment Scams

Given Singapore’s financial environment, here are tailored prevention methods to protect yourself from investment scams like the nickel trading fraud:

Regulatory Resources

Check MAS Investor Alert List: The Monetary Authority of Singapore (MAS) maintains an Investor Alert List of unregulated entities. Envy Asset Management was placed on this list in March 2020, a critical warning sign that many investors missed. Always check this list before investing.
Verify with Financial Industry Directory: Use MAS’s Financial Institutions Directory to confirm if an investment company is appropriately licensed and regulated in Singapore.
Use the Register of Representatives: Check if individual financial advisors or representatives are licensed through MAS’s Register of Representatives.

Singapore-Specific Protections

Lodge a police report: If you suspect fraud, file a report with the Singapore Police Force. The Commercial Affairs Department typically investigates commercial fraud cases.
Contact Consumer Association of Singapore (CASE): For consumer protection issues related to investments or financial products.
Utilize ScamShield app: Singapore’s government-developed app that blocks scam calls and messages—helpful in preventing initial contact from investment scammers.
Review SGX listings: For investment opportunities claiming to involve publicly traded companies, verify information through Singapore Exchange (SGX) resources.

Cultural Considerations in Singapore

Be cautious with “inside opportunities”: Singapore’s close-knit business community can sometimes create an impression of exclusive investment opportunities. Verify all claims independently.
Resist Kiasu pressure: The fear of missing out on potentially lucrative investments (the Kiasu mentality) can cloud judgment. Take time to conduct proper due diligence.
Skepticism towards luxury displays: Singapore’s wealth display culture can make lavish offices and lifestyles seem like indicators of success. Remember that Ng allegedly used investor funds to finance his luxury lifestyle.
Challenge relationship-based investing: In Singapore’s relationship-focused business culture, investment opportunities often come through personal connections. Maintain objectivity even with recommendations from trusted individuals.

Education and Reporting

MoneySense resources: Utilize Singapore’s national financial education program for guidance on investment safety.
Report to ACRA: The Accounting and Corporate Regulatory Authority can investigate suspicious business practices.
Attend fraud awareness workshops: Singapore regularly hosts financial literacy and scam prevention workshops through community centers and government initiatives.
File complaints with MAS: If you encounter potential financial fraud, report it directly to MAS through their official channels.

By combining these Singapore-specific approaches with standard due diligence practices, investors can better protect themselves against sophisticated investment scams in Singapore’s financial marketplace.

Investment Scam Statistics and Warning Signs

Investment scams were among the top 5 scam types in 2023, with 4,030 reported cases
The average loss per victim was approximately $50,700
Warning signs include:
- Unrealistic returns (like 20% in a month with low/no risk)
- Pressure tactics (limited-time offers, timed gifts)
- Claims of fictitious track records
- Unsolicited messages in chat groups

How Scammers Operate

The article mentions three main contact methods:

Befriending: Building rapport on social media before introducing fake investments
Online advertisements: Fake investment opportunities through social media ads
Messaging channels: Adding potential victims to chat groups

Protection Measures

Verify if an investment entity is regulated by MAS using their:
- Financial Institutions Directory
- Register of Representatives
- Investor Alert List
The article notes that dealing with unregulated entities means giving up legal safeguards.

The article also features Norman Lim, a software engineer who regularly receives these scam offers but avoids them by following sound investment principles, such as consistent investing, rather than trying to “beat the market.”

Analysis of Investment Scam Methods and Prevention in Singapore

Common Investment Scam Methods in Singapore

1. Contact and Manipulation Strategies

Messaging Group Infiltration: Scammers add targets to WhatsApp or Telegram groups, promoting “investment opportunities” (as experienced by Norman Lim in the article)
Social Media Befriending: Building rapport with potential victims before introducing fraudulent investment schemes
Deceptive Online Advertisements: Using social media platforms to promote fake investment opportunities
Psychological Tactics: As noted by Jeffrey Chin from Singapore Police Force, scammers “deploy a combination of social influence techniques that prey on human vulnerabilities”

2. Red Flags of Investment Scams

Unrealistic Returns: Promises of extraordinary gains (e.g., 20% returns in a month with minimal risk)
Pressure Tactics: Creating artificial urgency through limited-time offers or special rebates
Referral Schemes: Offering lucrative commissions for bringing in new investors
Fabricated Credentials: Claims of extensive experience, multiple accolades, or consistent high profits

Prevention Measures in Singapore

1. Regulatory Resources

MAS Verification Tools:
- Financial Institutions Directory (eservices.mas.gov.sg/fid)
- Register of Representatives (eservices.mas.gov.sg/rr)
- Investor Alert List (mas.gov.sg/investor-alert-list)

2. Financial Education

MoneySense Program: National financial education initiative that helps Singaporeans identify investment scam warning signs
Public Awareness Campaigns: Ongoing efforts to educate the public about emerging scam techniques

3. Safe Investment Practices

Consistent Investment Approach: Following stable investment strategies rather than attempting to “beat the market”
Working with Regulated Entities: Using licensed financial institutions and brokers
Skepticism Toward Unsolicited Offers: Being wary of investment opportunities that come through unexpected channels

4. Additional Protective Measures

Verification of Online Sellers: Checking verification status on e-commerce platforms
Fund Protection: Implementing security measures to safeguard bank accounts from malware
Call Verification: Being cautious of supposed government officials requesting money over the phone

Impact of Investment Scams in Singapore

Ranked among the top 5 scam types in 2023 with 4,030 reported cases
Average financial loss of approximately $50,700 per victim
The social and psychological toll on victims beyond financial losses

Dealing with unregulated investment entities means foregoing the legal protections and safeguards provided under MAS-administered laws, leaving investors vulnerable to fraud with limited recourse.

Investment Scam Alert from Singapore Police

The police are warning about investment scams where victims are approached through social media, communication apps, and dating platforms. Since June 2023, at least 498 victims have lost a total of $25.5 million.

Two Main Approaches Used by Scammers:

Befriending Approach:
- Scammers build rapport with victims through social media or dating apps
- They introduce “investment opportunities” after gaining trust
- Victims initially receive small profits, convincing them the investment is genuine
- Victims realize they’ve been scammed when they can’t withdraw profits or contact scammers

Online Advertisements Approach:
- Victims find investment ads online or on social media
- Clicking links leads to communication with scammers via WhatsApp or Telegram
- Scammers promise high returns in short timeframes
- Some victims are asked to download remote access software, allowing scammers to access their devices

Notable Concerns:

In at least four cases, victims were deceived into authorizing CPF (Central Provident Fund) withdrawals
Scammers used remote access software to control victims’ devices and make withdrawals

Precautionary Measures (ADD-CHECK-TELL):

ADD: ScamShield App and security features (2FA, transaction limits)
CHECK: Verify information with official sources and ask questions
TELL: Report scams to authorities, family, and friends

If you encounter suspicious activity, contact the Police Hotline at 1800-255-0000 or visit www.police.gov.sg/iwitness. For scam-related information, visit www.scamalert.sg or call the Anti-Scam Helpline at 1800-722-6688.

Important Insights to Consider

Every investment has risks. Therefore, it is crucial to conduct thorough research before investing.

Be alert for warning signs. Exercise caution regarding investments that promise substantial returns with minimal or no risk.

Ensure that the Monetary Authority of Singapore (MAS) regulates both the company and its representatives.

Imagine this scenario: One day, you suddenly find yourself added to a group chat where members are excitedly discussing their recent financial gains from an unmissable investment opportunity.

You may also receive a direct message on social media from someone who inquires if you’re interested in an enticing investment venture that seems too good to pass up.

You might even stumble across an advertisement on various social media platforms promoting seemingly profitable “investment opportunities.”

Does this sound like a situation you’ve encountered before?

Many of us have seen news articles detailing how individuals have fallen prey to such schemes. Yet, despite these cautionary tales, people continue to be lured in as scammers develop increasingly sophisticated methods to deceive unsuspecting victims and make off with significant sums of money.

In numerous cases, those who fell victim to scams were convinced that such a fate would never befall them. Often, they would utilize the initial gains they received to challenge the scepticism of their friends and family. However, it has become evident that con artists have honed their abilities to persuade individuals that a fast track to wealth is not only attainable but also just around the corner.

It is crucial always to remember the mantra: Verify Before You Invest if you wish to protect your hard-earned savings! To help you navigate this treacherous landscape, here are some essential guidelines to consider:

Spotting Warning Signs

Fraudsters have developed highly sophisticated strategies designed to coax you into relinquishing your funds. Fortunately, there are warning signs you can remain vigilant for, which can help you steer clear of investment fraud.

Unrealistic Returns with Little or No Risk

Exercise caution when faced with an investment proposal that guarantees protection for your capital while also promising unusually high returns. Generally, the higher the potential returns being offered, the greater the associated risks. Many scams lure in unsuspecting investors with alluring promises of profitability.

High-Pressure Sales Tactics

You might hear phrases like:
“Act fast! This opportunity is only available for a limited time!”
“Exclusive rates for the first 50 investors—don’t let this chance slip away!”
“Over 2,000 people have already invested—what’s stopping you?”
“Invest now and receive an additional 10% credit along with other enticing benefits.”

Limited-time offers, urgency-inducing tactics, and special bonuses are commonplace in investment scams, all aimed at hastening your decision to part with your money.

Ensure that you take the time to fully grasp what you are getting involved in instead of merely focusing on the tempting incentives being dangled before you.

Commission Offers

When approaching any investment opportunity, it’s vital to consider whether commissions are being offered for recruiting new investors. Be cautious, as this can sometimes indicate a pyramid scheme or similar fraudulent endeavour. Always do thorough research and seek clarity before making any financial commitment.

In summary, the world of investments can be fraught with danger if you are not careful. By remaining alert to these red flags and prioritising diligence, you can better protect your finances from the grips of deceitful schemes.

A Cautionary Tale of Investment Offers

Once upon a time, in the bustling world of finance, many unsuspecting individuals were drawn into the allure of investment opportunities that sparkled with promises of great returns. However, a wise investor named Alex had learned to tread carefully, for they understood that reputable investment schemes rarely entice potential investors with commissions for referrals. In fact, it was often the dubious operations—those shady investment scams—that dangled such bait in front of eager clients, encouraging them to recruit friends and family to grow their ranks swiftly.

Like cunning magicians, these scams boast impressive track records, claiming decades of experience and an array of prestigious awards. They paint vivid pictures of extravagant profits to instil trust and confidence in their unwitting victims. To further bolster their facade, they showcase glowing testimonials from so-called “satisfied customers,” who often turn out to be mere actors in a well-scripted play.

Yet, Alex remained undeterred by these flashy claims. With a healthy dose of scepticism, they decided to investigate further, knowing that it was wise to seek verification from independent sources rather than relying on the words of those who had something to gain.

In their quest for truth, Alex learned about the importance of ensuring that any investment entity was adequately regulated. They discovered that some fraudulent operations would even assert that they were under the watchful eye of relevant authorities, all in an effort to mislead potential investors. Armed with this knowledge, Alex turned to the resources available on the Monetary Authority of Singapore (MAS) website—a treasure trove of information designed to protect investors like themselves.

There, Alex found the Financial Institutions Directory, which listed all financial institutions under MAS’s regulatory umbrella, along with the activities they were authoauthorizedonduct. They also uncovered the Register of Representatives, detailing individuals permitted to engage in regulated activities. Most importantly, the Investor Alert List caught their eye—a reminder of those unregulated entities that might have been mistakenly perceived as legitimate.

With each click and scroll through the MAS website, Alex felt more empowered and informed. They realised that engaging with an unregulated entity meant stepping into a perilous arena without the protective measures afforded by the laws overseen by MAS.

Through this journey of discovery, Alex became a beacon of wisdom for others in their community, sharing tales of caution and encouraging vigilance. They understood that in the world of investments, not everything that glitters is gold, and it is always better to seek clarity and confirmation before placing one’s hard-earned money on the line. So, armed with knowledge and prudence, Alex navigated the treacherous waters of investment opportunities, determined to avoid the snares set by unscrupulous schemes.

Investigate the Company’s History

In a world where information flows freely, it’s crucial not to accept everything at face value. Before diving into any investment opportunity, take the time to investigate the claims made by the company and its representatives. Scrutinizer backgrounds and assess their track records carefully. This step is vital in ensuring that you are dealing with a legitimate entity.

Moreover, don’t hesitate to pose as many questions as necessary to grasp the full scope of the investment opportunity. If you find that the company is unable or unwilling to provide satisfactory answers, consider this a red flag and proceed with caution.

If you suspect you’ve fallen victim to a scam, act swiftly. Notify your bank immediately and file a police report without delay. This proactive approach can help mitigate potential losses and aid in any investigations.

It’s also wise to share your experiences and knowledge about investment scams with your family and friends. By spreading awareness, you can help protect them from similar pitfalls and ensure they remain vigilant.

Always remember that if an investment seems too enticing or promising, it likely carries hidden risks or may not be legitimate at all.

Protect Yourself From Scams

To take action and shield yourself from potential scams, consider implementing the following strategies:

Adjust Privacy Settings: Customize privacy settings on your messaging applications. This will help prevent unsolicited invitations to unfamiliar chat groups, which could be breeding grounds for scams.

Enhance Security Features: UtiliUtilizerity measures such as two-factor authentication (2FA) or multi-factor authentication for your banking applications. Additionally, set transaction limits on your payment accounts, including banking apps and services like PayNow or PayLah, to add another layer of protection against unauthorised transactions.

Utilise Money Lock Features: Many banks offer a “Money Lock” feature that allows you to secure a portion of your savings. This can act as a safeguard against potential threats, ensuring that your funds remain protected.

By taking these precautions, you can create a robust defence against scams and navigate the financial landscape with greater confidence.

Once upon a time, in a bustling city, there was a wise individual who understood the importance of being vigilant when it came to investment opportunities. One day, while browsing through potential financial ventures, they stumbled upon a captivating offer that promised extraordinary returns. Yet, having learned from past experiences, they knew that not everything that glittered was gold.

With a sense of caution, they recalled the resources available on the Monetary Authority of Singapore (MAS) website. It was a treasure trove of information containing vital tools such as the Financial Institutions Directory, the Register of Representatives, and the Investor Alert List. These resources could unveil whether the company behind this enticing investment was indeed regulated by MAS or merely a mirage in the desert of finance.

Before exploring this opportunity further, they decided to consult with a trusted friend, someone whose judgment they valued. Together, they examined the details of the offer, weighing its merits and flaws.

Yep, uncertainty lingered. The wise individual thought it prudent to contact the ScamShield helpline at 1799 for guidance. After all, it was better to seek clarity than to plunge headfirst into a potentially perilous situation.

Feeling a bit more secure but still sceptical, they resolved to contact the company’s official hotline. They needed reassurance that this investment product was genuine and not just an elaborate facade designed to lure unsuspecting victims.

As the story unfolded, this cautious individual became increasingly aware of their responsibility to share knowledge with others. They took it upon themselves to warn friends and family about the alarming encounter with what seemed to be a scam.

Determined to take action, they reported and blocked any suspicious accounts or chat groups that crossed their path. Their sense of duty didn’t stop there; if they suspected they had fallen prey to deceit, they would contact their bank without delay and file a police report to ensure that others would not face the same fate.

In their quest for safety and awareness, they discovered a valuable resource: scamshield.gov.sg. This website offered insights into various scams and provided tips on how to protect oneself from such threats.

So, armed with knowledge and determination, our wise protagonist continued their journey through the world of investments—more aware than ever of the importance of vigilance and community in safeguarding against deception.

Maxthon

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As you venture further into Maxthon, it becomes evident just how deeply committed it is to user protection. The visionary developers behind this groundbreaking browser have instituted formidable measures to shield personal data from unwanted scrutiny. By employing cutting-edge encryption techniques, Maxthon guarantees that sensitive information remains confidential during your digital expeditions, granting you peace of mind as you explore the vastness of the Internet.

In the arena of enhancing your online privacy, Maxthon truly excels. Every feature within the browser has been thoughtfully designed to enrich your experience while ensuring that your data remains secure. Its ad-blocking functionality effectively shields you from disruptive advertisements, while its anti-tracking tools diligently thwart scripts intent on monitoring your every action online. This empowers users to navigate the web with a sense of liberation and confidence. Additionally, the incognito mode offers an extra layer of security, allowing users to browse without leaving any digital traces on their devices.

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Nickel trading scam case testimony