OCBC moves to recover over S$6 million owed on mortgages for assets linked to money laundering case

OCBC has filed several claims in the High Court seeking over S$6 million from three foreign nationals who are possibly linked to the S$3 billion money laundering case.

In court documents seen by The Business Times, claims were initiated against Xu Haika and Wu Yamei, who had purchased two three-bedroom units on the 43rd floor of South Beach Residences. 

Lin Baoying, one of the 10 convicted in the case, as well as Su Yongcan, who is a person of interest to the police, had bought a unit in the same development. 

While the police did not confirm whether Xu and Wu were under investigation, The Straits Times reported last year that Xu had ties to one Chen Al Len, who had set up a company linked to the Heng He Group, which is reportedly involved in scams, illegal gambling and human trafficking. Xu and Chen are both directors of a Cambodian company called P 7 International Trading.

For the two South Beach Residences units, OCBC is seeking about S$2.4 million from Xu and Wu for each property, as well as interest on the outstanding sum at 4.75 percentage points above the bank’s prime lending rate of 5 per cent, with monthly rests, from Jul 11 to the date of full payment. 

Late payment of S$80 per month until the date of full payment will be added to the amount. The bank is also seeking to repossess the properties. 

A claim has also been brought against one Hu Chengmei for an outstanding sum of about S$1.2 million for a 14th floor unit at Gramercy Park. BT has found at least eight other units at Gramercy Park belonging to convicted persons Su Haijin and Lin, as well as their associates. 

According to checks by BT, Hu is a shareholder of Cambodian company Su Zigen Chengmei together with Su Haijin, the man who jumped from the second-floor balcony of a Good Class Bungalow during the Aug 15 raid last year. 

Both Su Haijin and Hu were shareholders of SG-Gree, which is listed as a household equipment wholesaler in Accounting and Corporate Regulatory Authority (Acra) records. 

Meanwhile, two units at Canninghill Piers held in the name of Wang Ruiyan, wife of convicted money launderer Vang Shuiming, have been put back on the market again. 

One of the units is a three-bedder on the seventh storey, which is being advertised for about S$3.5 million, or S$2,813 per square foot (psf). A four-bedroom unit on the 17th storey is on sale for about S$5.6 million, or S$2,849 psf. 

The two units are among 19 units at Canninghill Piers which were purchased by Wang and another associate and which are estimated to be worth almost S$85 million. 

Since January, banks including OCBC and DBS have been in the process of recovering funds owed from mortgages extended on properties connected to the case. 

In July, OCBC announced that a vacant plot of land in Sentosa Cove previously owned by Su Baolin was sold for over S$20 million, allowing the bank to recover all overdue loans on the property. 

In June, BT reported that DBS accepted offers totalling over S$100 million for 13 mortgaged shophouses in Chinatown and Geylang owned separately by Su Fuxiang and Su Binghai, who are also persons of interest in the case. The duo are connected to Wang Dehai who was convicted in June. 

DBS chief executive Piyush Gupta said in an earnings call in February that the bank had about S$100 million in exposure to the money laundering case, involving mostly property purchases or retail customer accounts used to finance properties.

In response to previous media queries on the sale of shophouses owned by Su Fuxiang and Su Binghai, the police said net sale proceeds (after repayment of the loan and relevant fees) will be seized by the police, at the conclusion of the sale. 

“These proceeds will thereafter be dealt with by the courts at the conclusion of the case.”

Source: Business Times © SPH Media Limited. Permission required for reproduction.

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