Malaysian International Trading Corp v Interamerica Asia: Breach of Trust, Conspiracy to Defraud, Dishonest Assistance
In Malaysian International Trading Corp Sdn Bhd v Interamerica Asia Pte Ltd, the High Court of Singapore heard a case regarding a massive fraud perpetrated against Malaysian International Trading Corporation Sdn Bhd (Mitco). Mitco claimed breach of trust, conspiracy to defraud, and dishonest assistance. The court found some defendants liable for conspiracy to defraud and dishonest assistance, awarding judgment for the plaintiff except in relation to the fourth, ninth, tenth, thirteenth and fourteenth defendants. IAG’s counterclaim against the plaintiff was dismissed.
1. Case Overview
1.1 Court
High Court1.2 Outcome
Judgment for the plaintiff except in relation to the fourth, ninth, tenth, thirteenth and fourteenth defendants. IAG’s counterclaim against the plaintiff dismissed.
1.3 Case Type
Civil
1.4 Judgment Type
Grounds of Decision
1.5 Jurisdiction
Singapore
1.6 Description
Malaysian International Trading Corp suffered a massive fraud. The court found some defendants liable for conspiracy to defraud and dishonest assistance.
1.7 Decision Date
2. Parties and Outcomes
| Party Name | Role | Type | Outcome | Outcome Type | Counsels |
|---|---|---|---|---|---|
| Malaysian International Trading Corp Sdn Bhd | Plaintiff | Corporation | Judgment for Plaintiff | Won | |
| Interamerica Asia Pte Ltd | Defendant | Corporation | Judgment against Defendant | Lost | |
| Interamerica International Pte Ltd | Defendant | Corporation | Judgment against Defendant | Lost | |
| Shunichi Nonaka | Defendant | Individual | Judgment against Defendant | Lost | |
| Azalan Mior Zainadi | Defendant | Individual | Judgment for Defendant | Won | |
| Mohammed Amin Najib | Defendant | Individual | Judgment against Defendant | Lost | |
| Choo Siew Lohk | Defendant | Individual | Judgment against Defendant | Lost | |
| Huangpu Industrial Holdings Pte Ltd | Defendant | Corporation | Judgment for Defendant | Won | |
| Tiong Chiong Hing | Defendant | Individual | Judgment for Defendant | Won | |
| Fu Rong Hua | Defendant | Individual | Judgment for Defendant | Won | |
| Wu Mun Wai | Defendant | Individual | Judgment against Defendant | Lost | |
| Huangpu Asia Pte Ltd | Defendant | Corporation | Judgment for Defendant | Won | |
| Huangpu Holdings International Pte Ltd | Defendant | Corporation | Judgment for Defendant | Won | |
| Inter-America’s Group LLC | Defendant | Corporation | Judgment against Defendant | Lost | |
| William Lindsay Cannon | Defendant | Individual | Judgment against Defendant | Lost | |
| KD Energy Co Limited | Other | Corporation | |||
| Global Commodities (M) Sdn Bhd | Other | Corporation | |||
| Ecopal Trading Group LLC | Defendant | Corporation | Judgment against Defendant | Lost | |
| Ecopal Inc | Defendant | Corporation | Judgment against Defendant | Lost | |
| Tsai Cheng Wen | Defendant | Individual | Judgment against Defendant | Lost | |
| Excellead Sdn Bhd | Other | Corporation | |||
| EP Sdn Bhd | Other | Corporation | |||
| Flashy Properties Limited | Defendant | Corporation | Judgment against Defendant | Lost | |
| Venture Trading Partners II Ltd | Defendant | Corporation | Judgment against Defendant | Lost | |
| John Dhillon | Defendant | Individual | Judgment against Defendant | Lost |
3. Judges
| Judge Name | Title | Delivered Judgment |
|---|---|---|
| Lai Kew Chai | Judge | Yes |
4. Counsels
4. Facts
- Mitco suffered a loss of US$75.1 million plus financing and other charges and losses.
- Mitco entered into 137 individual contracts of sale of palm olein.
- Two international fraudsters deployed the strategy of ‘buying high (from Mitco) and selling low’.
- Payments, if and when made, were only made to ensure that Mitco would enter into more contracts of sales.
- Nonaka and Cannon bribed an employee of Mitco, Mohammed Amin Najib.
- Najib received at least about US$1.2 million, most of which were deposited into his Kuala Lumpur bank accounts in cash.
- 84 LCs were opened or purportedly opened in respect of the contracts of sales between Mitco and IAG.
5. Formal Citations
- Malaysian International Trading Corp Sdn Bhd v Interamerica Asia Pte Ltd and Others, Suit 280/2000, [2002] SGHC 198
6. Timeline
| Date | Event |
|---|---|
| Tiong Tack Kieng met Najib for the first time. | |
| Tiong Tack Kieng travelled to Singapore and met Jeson, Lionel, Cindy and Mike Tiong. | |
| Shipment loaded on m.v. Technochem. | |
| Nonaka informed Tiong Tack Kieng by e-mail that Huangpu was taking over from Excellead. | |
| Huangpu entered into an agreement with IAG to purchase 20,000 metric tons of palm olein from IAG each month. | |
| Huangpu defaulted in their payments to IAG in relation to three shipments which were effected on m.v. Spring Grace, Yang Pu and Ussuryisk. | |
| IAA incorporated in Singapore. | |
| Dato Hamzah Bakar, the Chairman of Mitco learnt that there were invalid LCs in Mitco. | |
| Board of Directors of Mitco convened. | |
| Speeches delivered by the Law Lords in Twinsectra Limited v Yardley & others. | |
| Decision Date |
7. Legal Issues
- Conspiracy to defraud
- Outcome: The court found that Najib, Nonaka, Cannon and the IAG Parties had combined to defraud Mitco.
- Category: Substantive
- Dishonest assistance of breach of trust
- Outcome: The court found that Lionel and Choo after they had joined Nonaka in IAA became aware of the fraud and were liable for dishonest assistance.
- Category: Substantive
- Liability for traceable proceeds
- Outcome: The court declared that any of the parties found liable are holding any traceable proceeds of sale or equivalents thereof upon constructive trusts for Mitco.
- Category: Substantive
8. Remedies Sought
- Monetary damages
- Tracing of assets
9. Cause of Actions
- Breach of trust
- Conspiracy to defraud
- Dishonest assistance of breach of trust
10. Practice Areas
- Commercial Litigation
11. Industries
- Commodities Trading
12. Cited Cases
| Case Name | Court | Affirmed | Citation | Jurisdiction | Significance |
|---|---|---|---|---|---|
| Kuwait Oil Tanker Company SAK v Al Bader | N/A | Yes | [2000] 2 All ER (Comm) 271 | N/A | Cited regarding conspiracy to injure by unlawful means. |
| Agip v Jackson | N/A | Yes | [1990] 1 Ch 265 | N/A | Cited regarding dishonest behaviour that would make a person part of the fraud. |
| Royal Brunei Airlines v Tan | N/A | Yes | [1995] 2 AC 378 | N/A | Cited regarding the test of dishonesty in accessory liability for breach of trust. |
| Twinsectra Limited v Yardley & others | N/A | Yes | [2002] 2 WLR 802 | N/A | Cited regarding the test of dishonesty in accessory liability for breach of trust. |
| AG v Reid | N/A | Yes | [1994] 1 AC 324 | N/A | Cited regarding constructive trusts for bribes. |
| Sumitomo Bank Ltd v Kartika Ratna Thahire & Ors | High Court of Singapore | Yes | [1993] 1 SLR 735 | Singapore | Cited regarding constructive trusts for bribes. |
| Williams v Barton | N/A | Yes | [1927] 2 Ch 9 | N/A | Cited regarding constructive trusts for bribes. |
13. Applicable Rules
| Rule Name |
|---|
| No applicable rules |
14. Applicable Statutes
| Statute Name | Jurisdiction |
|---|---|
| No applicable statutes | |
15. Key Terms and Keywords
15.1 Key Terms
- Palm olein
- Letters of credit
- Constructive trust
- Dishonest assistance
- Traceable proceeds
15.2 Keywords
- Fraud
- Breach of Trust
- Palm Olein
- Singapore
- Commercial Litigation
17. Areas of Law
| Area Name | Relevance Score |
|---|---|
| Dishonest assistance of breach of trust | 85 |
| Fraud and Deceit | 80 |
| Trust Law | 75 |
| Constructive trusts | 70 |
| Traceable proceeds | 65 |
| Fiduciary Duties | 60 |
| Contract Law | 50 |
| Civil Procedure | 30 |
16. Subjects
- Trust Law
- Fraud
- Commercial Law