Singaporean jailed for assisting foreigner’s S$6M restricted property purchase

Tan also directed Guan Aimei (关瑷梅), another Singaporean co-accused in the case, to procure the third house for Zhan.

The trio of houses involved in this case are classified as restricted residential properties, requiring foreign nationals to obtain permission under the Residential Property Act for ownership.

Zhan, with the intention of acquiring all the houses along East Coast Road, where the three properties are situated, aimed to construct a condominium in their place.

This project aligned with his previous ventures, as stated by the prosecution.

Zhan secured PR through the Economic Development Board’s global investor program

Prosecutors described Zhan as an experienced and affluent businessman, holding shares in approximately 100 organizations in China and involved in the steel industry in Indonesia, Laos, and Thailand.

During the period of the offences in around 2007 and 2008, his annual income amounted to about S$7 million.

Zhan secured permanent residency in Singapore through the Economic Development Board’s global investor program in 2003 or 2004.

He pledged to invest approximately S$1.5 million in Singapore alongside his two brothers.

Tan, at the time a professional auditor, accountant, and corporate secretary, met Zhan in Singapore around 2003.

Zhan, unfamiliar with Singapore’s laws, enlisted Tan’s assistance for his investments.

Subsequently, Tan assisted Zhan in establishing companies and took charge of managing the financial aspects, given Zhan’s primarily overseas presence.

Zhan’s property development ventures: acquisitions, constructions, and sales

Zhan engaged in property development, utilizing his companies to acquire landed properties in Singapore, demolish existing structures, construct small-scale condominiums, and sell the units in new developments.

Tan played a pivotal role in setting up Alphaland and Xin An, the main contractor for these projects, including successful ventures such as Rosyth Residence, Tembeling Court, and Ceylon Residence.

During the trial, Tan asserted that he had personally purchased the three East Coast Road properties, claiming the plan to acquire seven units on East Coast Road was his own initiative.

Deputy Public Prosecutors Foo Shi Hao and Louis Ngia requested a prison sentence ranging from three years and four months to four years and six months for Tan, leaving the fine quantum to the discretion of the court.

They highlighted Tan’s persistent dishonesty in concealing the true identity of the purchaser of the three houses, even during judicial proceedings.

Emphasizing Tan’s repeated violations of Singapore’s land policy, the prosecutors asserted that his motive was driven by a pursuit of “considerable profit.”

Tan, described as Zhan’s associate in the redevelopment business, stood to gain 20% of the estimated profit exceeding S$50 million from the land redevelopment at East Coast Road.

Zhan allegedly funded most of the property purchases, requiring Tan and Guan Aimei as proxies due to his non-Singaporean status.

After Zhan’s nephew and son completed national service and obtained Singaporean citizenship, Guan and the defendant separately “resold” two private residences to Zhan’s relatives in 2012 and 2013.

Zhan’s absconding disclosed in February 2023 hearing

The prosecutors labelled Tan as the primary instigator in the offences, alleging that he manipulated Guan, whom they referred to as a “simpleton,” into signing relevant documents.

Additionally, Tan initiated a civil suit against Guan for S$2.3 million over one of the houses, despite her role as a nominee for Zhan under Tan’s instructions.

Guan had previously been fined S$5,000 for her involvement in the case.

The prosecution deemed Tan’s actions particularly egregious, given that he instructed Guan to purchase the house as a nominee for Zhan.

In a hearing in February last year, the prosecution revealed that Zhan had absconded in 2017 and remained at large.