Re: Such ridiculous weak control system at DBS

At $2.13 million, it is about 0.00000001065% of what Lee Kuan Yew's
$20billion dumped into a bottomless wells at the backyard of two financially
troubled foreign banks.


"achtung" <konon@xxxxxxxxxxx> wrote in message
news:de16b58c-9231-43bf-83ed-ac7a51b58615@xxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
these banks are no different from Ah Long.

On Jul 31, 10:48 am, "truth" <tr...@xxxxxxxxxxxx> wrote:
http://www.asiaone.com/Business/News/My%2BMoney/Story/A1Story20080731...

He uses dud cheques to scam bank of $2.1million

By Andre Yeo

YOU could say he was a bank robber with a difference.

Instead of a gun, he hit banks with just a simple plan. And it made
him $2.1 million richer - until the law caught up with him.

Quah Lai Meng, 33, was working in a handphone shop when he noticed
what he thought was a *** in the armour of the banking industry - the
cashline facility.

Through this facility, banks provide ready cash to consumers who then
repay the amount with interest.

In November 2007, Quah forged an application form for a DBS Cashline
facility using the particulars of his friend, Luah Kian Hing. Luah has
been
charged and his case is pending.

DBS issued a credit card and cashline cheque book in Luah's name but
sent them to Quah's address.

The credit limit was $5,000.

Quah, who has only PSLE qualifications, then executed his plan to
defraud DBS, according to court documents.

Quah, who is single and was engaged to be married, withdrew the
maximum $5,000 from the DBS Cashline account.

LIMIT REACHED

He knew that before he could make more withdrawals, he had to make
repayments into the account since the credit limit had been reached.

He prepared several cheques, which belonged to some friends, to make
payments into the account.

Court documents did not identify these friends nor explain the role
they played in this scam.

These dud cheques belonged to accounts that had no money. His plan was
to dupe DBS into thinking he had already settled his outstanding debts.

Quah knew it would take one to two days for the bank to realise this.

On 27 Dec 2007, he deposited a UOB cheque for $46,700 into the DBS
Cashline account. Two days later, he went to the POSB branch at Hougang
Central and withdrew $3,000.

It was easy money for him and he did it again on 9 Jan this year.

He deposited an OCBC cheque for $570,000 into the DBS Cashline
account.

The next day, he got his sister-in-law, Lim Wee Ching, to withdraw
$128,000 from the POSB branch at Hougang Central. He then got her to keep
the money for him.

On another occasion, Quah got his brother, Lai Huat, to keep $200,000
for him. He had got the money as a result of cheating DBS.

Quah struck again on 15 Jan, at the POSB branch at Funan DigitaLife
Mall. He left the branch with $240,000 in cash.

DBS finally got wind of what he was up to and lodged a police report.

NABBED

On 22 Jan, Quah was arrested at Ang Mo Kio Central.

Between 10 Dec 2007 and 22 Jan, he had cheated DBS of a total of
$2.13m.

Quah faced 46 charges of cheating, forgery, transferring benefits of
criminal conduct, and possession of four Erimin 5 tablets, a controlled
drug. Two charges come under the Customs Act of buying 13 cartons of
cigarettes with unpaid duty worth almost $1,000.

The prosecution proceeded with 13charges while the rest were taken
into consideration.

In the Subordinate Courts last Friday , Quah was convicted after
pleading guilty to all charges.

In mitigation, his lawyer Ms Gloria James said there was no elaborate
plan by her client to cheat the banks.

Quah had readily admitted that he had taken advantage of an 'inherent
flaw in the banking system'.

In a handwritten note to the court, he said he had no plans to commit
the crime until he tried his luck to see if the cheques would clear.

He said it was a gamble and added: 'I just kept rolling on it until
the sums grew and I was eventually caught.

'I did this out of greed...'

About $1.6m has been recovered.

Ms James said Quah spent $80,000 of the $500,000 that has not been
recovered.

His next court appearance will be on 15 Aug when corrective training
and preventive detention reports will be submitted.

Police investigations are ongoing.

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