Centaurus Enterprises v Foong Yew Eong: Employee Misappropriation and Conspiracy
In Centaurus Enterprises (S) Pte Ltd v Foong Yew Eong Christopher and Others, the Singapore High Court addressed a claim by Centaurus Enterprises against its former employee, Christopher Foong Yew Eong, for misappropriating funds. The plaintiff also implicated Foong's wife, Lam Kim Moy, alleging she conspired with him. The court entered judgment in default of appearance against Foong and Paminco Enterprise Sdn Bhd. Lai Siu Chiu J delivered interlocutory judgment in favour of the plaintiff against the third defendant, ordering an inquiry to determine the extent of misappropriated funds and their tracing into various assets.
1. Case Overview
1.1 Court
High Court1.2 Outcome
Interlocutory judgment for the plaintiff against the third defendant; an account and/or inquiry shall be taken/held by the Registrar to determine the sums misappropriated.
1.3 Case Type
Civil
1.4 Judgment Type
Judgment
1.5 Jurisdiction
Singapore
1.6 Description
Singapore High Court case involving Centaurus Enterprises' claim against its former employee for misappropriating funds, with his wife accused of conspiracy.
1.7 Decision Date
2. Parties and Outcomes
| Party Name | Role | Type | Outcome | Outcome Type | Counsels |
|---|---|---|---|---|---|
| Centaurus Enterprises (S) Pte Ltd | Plaintiff | Corporation | Interlocutory Judgment | Partial | Liew Teck Huat |
| Foong Yew Eong Christopher | Defendant | Individual | Judgment in Default of Appearance | Lost | |
| Paminco Enterprise Sdn Bhd | Defendant | Corporation | Judgment in Default of Appearance | Lost | |
| Lam Kim Moy | Defendant | Individual | Interlocutory Judgment | Partial | Lee Chiat Jin Jeffrey, Joseph Chai |
3. Judges
| Judge Name | Title | Delivered Judgment |
|---|---|---|
| Lai Siu Chiu | Judge | Yes |
4. Counsels
| Counsel Name | Organization |
|---|---|
| Liew Teck Huat | Niru & Co |
| Lee Chiat Jin Jeffrey | Lee Chai & Boon |
| Joseph Chai | Lee Chai & Boon |
4. Facts
- The first defendant was employed by the plaintiff and had access to its bank accounts.
- The first defendant made unauthorized transfers from the plaintiff's accounts to the second defendant's account.
- The first defendant forged signatures on payment vouchers to withdraw cash from the plaintiff's account.
- The first defendant tampered with bank statements to conceal his fraudulent activities.
- The first defendant absconded after his fraudulent activities were discovered.
- The third defendant was the wife of the first defendant and a director of the second defendant.
- The third defendant and the first defendant jointly purchased a property (Lakeshore) during the period of misappropriation.
- The first defendant used the plaintiff's money for the purchase of the Lakeshore property.
5. Formal Citations
- Centaurus Enterprises (S) Pte Ltd v Foong Yew Eong Christopher and Others, Suit 607/2006, [2008] SGHC 195
6. Timeline
| Date | Event |
|---|---|
| Centaurus Enterprises (S) Pte Ltd incorporated as PT Timur Megah Steel Pte Ltd. | |
| Plaintiff changed activities after the Asian financial crisis. | |
| Christopher Foong Yew Eong employed as an administrative assistant. | |
| Paminco Enterprise Sdn Bhd incorporated in Malaysia. | |
| Christopher Foong Yew Eong and Lam Kim Moy married. | |
| Lakeshore property purchased jointly by Christopher Foong Yew Eong and Lam Kim Moy. | |
| Budi Agusalim visited Singapore and instructed Christopher Foong Yew Eong to follow him to UOB. | |
| Christopher Foong Yew Eong's resignation letter. | |
| Christopher Foong Yew Eong absconded. | |
| Lukito Agusalim visited UOB and lodged a police report. | |
| Lukito Agusalim lodged a police report in Kuala Lumpur. | |
| Plaintiff filed suit and obtained Mareva injunction. | |
| Christopher Foong Yew Eong sent an email admitting his misdeeds. | |
| Judgment reserved. |
7. Legal Issues
- Misappropriation of Funds
- Outcome: The court found that the first defendant misappropriated funds from the plaintiff's accounts.
- Category: Substantive
- Sub-Issues:
- Unauthorized Transfers
- Forgery
- Embezzlement
- Conspiracy to Injure
- Outcome: The court found that the third defendant did not consciously conspire with the first defendant to injure the plaintiff by unlawful means nor knowingly assist him to him to do so.
- Category: Substantive
- Sub-Issues:
- Agreement to commit unlawful acts
- Intent to cause damage
- Unlawful means
- Related Cases:
- [1994]1SLR 534
- Knowing Receipt
- Outcome: The court found that the third defendant deliberately turned a blind eye to the first defendant's acts and should have questioned his source of funding.
- Category: Substantive
- Sub-Issues:
- Dishonest Assistance
- Constructive Trust
- Turning a blind eye
- Related Cases:
- [1990] Ch 265
- Tracing of Assets
- Outcome: The court ordered an inquiry to determine whether and to what extent the plaintiff's moneys went into various assets.
- Category: Procedural
- Sub-Issues:
- Following misappropriated funds
- Identifying assets purchased with misappropriated funds
- Establishing a proprietary claim
8. Remedies Sought
- Monetary Damages
- Account of Profits
- Tracing Order
9. Cause of Actions
- Breach of Fiduciary Duty
- Conspiracy to Injure
- Unjust Enrichment
- Fraudulent Misappropriation
10. Practice Areas
- Commercial Litigation
- Fraudulent Misappropriation
11. Industries
- No industries specified
12. Cited Cases
| Case Name | Court | Affirmed | Citation | Jurisdiction | Significance |
|---|---|---|---|---|---|
| Chua Kwee Chen, Lim Kah Nee and Lim Chah In v Koh Choon Chin | High Court | Yes | [2006] 3 SLR 469 | Singapore | Cited regarding the standard of proof for fraud and forgery. |
| Veetak Enterprise Sdn Bhd v The Kuala Lumpur Finance Bhd | N/A | Yes | [1987] 1 MLJ 407 | Malaysia | Cited by the third defendant's counsel but deemed irrelevant by the court. |
| Madam Loh Sai Nyah v American International Assurance Co Ltd | N/A | Yes | [1998] 2 MLJ 310 | Malaysia | Cited by the third defendant's counsel but deemed irrelevant by the court. |
| AMDB Factoring Sdn Bhd v Iszajaya Sdn Bhd & Ors | N/A | Yes | [1997] 5 MLJ 402 | Malaysia | Cited by the third defendant's counsel but deemed irrelevant by the court. |
| Seagate Technology (S) Pte Ltd v Heng Eng Li | N/A | Yes | [1994]1SLR 534 | Singapore | Cited for the required elements of conspiracy. |
| Lonrho plc v Fayed and Others | House of Lords | Yes | [1991] 3 All ER 303 | England and Wales | Cited regarding the intention to injure in conspiracy cases. |
| Wu Yang Construction Group Ltd v Zhejiang Jinyi Group Co Ltd | N/A | Yes | [2006] 4 SLR 451 | Singapore | Cited regarding the intention to injure in conspiracy cases. |
| Malaysian International Trading Corp Sdn Bhd v Interamerica Pte Ltd and Others | N/A | Yes | [2002] 4 SLR 537 | Singapore | Cited regarding dishonesty being sufficient to found the third defendant liable. |
| Agip (Africa) v Jackson | N/A | Yes | [1990] Ch 265 | England and Wales | Cited regarding dishonesty being sufficient to found the third defendant liable. |
| Asian Corporate Services (SEA) Pte Ltd v Eastwood Management Ltd (Singapore branch) | N/A | Yes | [2006] 1 SLR 901 | Singapore | Cited regarding the liability of a co-conspirator extending to all the losses suffered by the victim. |
13. Applicable Rules
| Rule Name |
|---|
| No applicable rules |
14. Applicable Statutes
| Statute Name | Jurisdiction |
|---|---|
| Evidence Act (Cap 97) 1997 Rev Ed | Singapore |
15. Key Terms and Keywords
15.1 Key Terms
- Misappropriation
- Conspiracy
- Fraud
- Tracing
- Constructive Trust
- Mareva Injunction
- Payment Vouchers
- Bank Statements
- Unauthorized Transfers
- Lakeshore Property
15.2 Keywords
- misappropriation
- conspiracy
- fraud
- tracing
- employee
- funds
16. Subjects
- Fraudulent Misappropriation
- Conspiracy
- Breach of Trust
- Tracing of Assets
17. Areas of Law
- Conspiracy
- Fraud
- Equity
- Tracing
- Breach of Trust