Two businessmen face 442 charges for sham employment businesses

1. On 20 October 2017, two Singaporean businessmen – 39-year-old Terry Tan-Soo I-Hse (“Tan-Soo”) and 30-year-old Clarence Lim Jun Yao (“Lim”) – were jointly charged by the Commercial Affairs Department of the Singapore Police Force and Ministry of Manpower. They face a total of 442 charges for operating and using three sham companies to fraudulently collect fees from over 300 foreign job-seekers, when there were no actual jobs.
2. Tan-Soo was the director of an employment agency – Asia Recruit Pte Ltd (“Asia Recruit”) (now known as Alliance Recruit Pte. Ltd.), while Lim was the director of Asiajobmart Pte Ltd (“Asiajobmart”), and UUBR International Pte Ltd (“UUBR”) (now known as Connectsia Pte Ltd).
3. Both Tan-Soo and Lim face charges for fraudulent trading under the Companies Act, which were investigated by the Commercial Affairs Department of the Singapore Police Force. The duo also face charges under the Employment of Foreign Manpower Act, while Tan-Soo face additional charges under the Employment Agencies Act, of which both offences were investigated by the Ministry of Manpower (“MOM”).
4. Investigations revealed that Tan-Soo and Lim submitted a total of 449 work pass applications to MOM, of which, 445 applications were rejected. MOM has imposed a ban on Lim, Asiajobmart and UUBR, from employing any new foreign workers and from renewing any work passes. Asia Recruit’s employment agency (“EA”) licence has also been suspended.
5. If convicted under Section 340(5) the Companies Act, the accused persons may be sentenced to imprisonment for up to seven years, or a fine of up to $15,000, or both, per charge. If convicted for false declaration offences under the Employment of Foreign Manpower Act, the accused persons may be sentenced to imprisonment for up to two years, or a fine of up to $20,000, or both, per charge. If convicted for a breach of licensing conditions under the Employment Agencies Act, the accused persons may be sentenced to imprisonment for up to six months, or a fine of up to $5,000, or both, per charge. In addition, their EA licence will be revoked.
   
   Advisory from MOM
6. Job seekers are reminded that they should not pay fees to their EAs until they are successfully emplaced with an employer. MOM also reminds all licensed EAs to comply with the licensing conditions and regulations under the Employment Agencies Act (EAA). EAs are reminded to only collect fees (within the prescribed limits under the law) from clients after they have successfully placed job seekers with employers. A contravention of the EAA, may result in suspension of the licence or even revocation.
7. Job seekers and employers who know of persons or employers who contravene the Employment of Foreign Manpower Act or Employment Agencies Act should report the matter to MOM at 6438 5122 or e-mail mom_fmmd@mom.gov.sg. All information will be kept strictly confidential.