A man behind a multimillion-dollar wine investment scheme in Singapore that caused investors to lose more than S$14 million (about US$10.9 million currently) was jailed for seven years and two months on Thursday after being on the run for 13 years.
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Eldric Ko, 51, was the CEO of Premium Liquid Assets (PLA), which he incorporated in October 2005 to distribute, sell and broker sales of fine wines.
However, when it became clear that the business was not sustainable, Ko, a Singaporean, decided to cheat investors out of their money and postpone PLA’s liabilities.
From 2008 to 2011, the accused and a co-conspirator, Koo Han Jet, devised and carried out the scheme, which involved the use of what the prosecution called a “carefully constructed network of shell entities and overseas accounts” and legal documentation to “create a veneer of legitimacy to the company’s operations”.
Ko misappropriated S$12.67 million of investors’ funds, and squirrelled away S$8 million for his and Koo’s personal benefit, Deputy Public Prosecutor Michelle Tay said.
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“No restitution was made, and the hundreds of investors remain saddled with their losses to date,” she told the court.
Based on investigations, more than S$14 million was paid by victims of PLA’s scheme, with more than 200 people affected.