Foreign businessman seeking residency and citizenship in Singapore by “investing” S$360,000, jailed for false pass application

SINGAPORE: A foreign entrepreneur has been sentenced to four weeks in jail for providing false information to the Ministry of Manpower (MOM).

This individual, Zhang Qingqiao, a 37-year-old Chinese national, falsely claimed that he would be working for a local company to obtain an employment pass, although he had no intention of doing so.

His real motive was to secure a legitimate stay in Singapore, ultimately aiming to attain permanent residency and citizenship by “investing” S$360,000 (US$263,000) in the said company, as reported by Channel News Asia.

Zhang, an experienced investor since 2012 while still in China, had a long-term goal of relocating his entire family to Singapore and establishing permanent residency and citizenship there.

In his pursuit, he crossed paths with Wang Jue, also known as Jess, in July 2019.

Wang presented him with a fraudulent investment scheme, according to Zhang’s defence.

Under Wang’s scheme, Zhang decided to “invest” S$360,000 in a company called MW Dynamics, rejecting an alternative plan that required a S$2 million investment for purportedly faster permanent residency status.

In this arrangement, he became an employment pass holder at MW Dynamics, drawing a monthly salary of S$10,000.

After three years, he was supposed to receive his S$360,000 “investment” back through his salary, all without the need for any actual work or involvement with the company.

The primary objective of this “zero-returns” investment was to secure an employment pass under MW Dynamics to legitimize his stay in Singapore, despite having no intention of contributing to the company.

Zhang proceeded to submit a falsified employment pass declaration form for employment pass to the Controller of Work Passes in September 2019, declaring that he would work as a business development director for MW Dynamics with a monthly salary of S$10,000.

Surprisingly, his application was approved.

The exact means by which Zhang’s wrongdoing was uncovered remain unclear, but his sentencing followed a similar case involving another Chinese national, Yu Huajie, who was sentenced to seven weeks in jail for engaging in similar offenses in collaboration with Wang.

During Zhang’s trial, his defense team attempted to shift blame onto Wang, arguing that he had been deceived by her.

Judge’s ruling and legal consequences

Principal District Judge Victor Yeo found this argument unconvincing, pointing out that Zhang was an experienced businessman who could have sought legal advice about his investments.

The prosecution requested a prison sentence ranging from four to six weeks for Zhang, whereas his defense attorneys, Mr. Sunil Sudheesan and Ms. Joyce Khoo from Quahe Woo & Palmer, advocated for a monetary fine as an alternative.

Additionally, Judge Yeo dismissed claims that Zhang’s limited proficiency in English and trust in Wang for the employment pass application were credible excuses.

The deception spanned approximately 18 months and directly violated MOM’s regulations for issuing employment passes.

It also had implications for immigration policy, according to the judge.

The defense asserted that this case differed from typical Employment of Foreign Manpower Act violations, usually involving false qualifications or employers breaking rules for monetary gain.

However, the judge countered this argument, highlighting that MW Dynamics had received a significant sum from Zhang, making it inaccurate to claim that no economic benefit was derived.

The defense also suggested that Zhang could have obtained an employment pass through his family office, similar to his wife’s approach.

Nonetheless, the judge dismissed this as speculative and irrelevant, emphasizing that Zhang knowingly chose the path involving false declarations.

Zhang intends to appeal his conviction and sentence.

According to the judge’s grounds for conviction, Wang may also face criminal proceedings for her involvement in Zhang’s employment pass application.

For making false declarations on his employment pass application form, Zhang could have faced a maximum penalty of two years in jail, a fine of up to S$20,000, or both.