Channel NewsAsia
Updated: 07/15/2013 19:52 | By Channel NewsAsia

Licensed moneylender fined S$114,000 for breaching moneylending laws

Licensed moneylender fined S$114,000 for breaching moneylending laws


Licensed moneylender fined S$114,000 for breaching moneylending laws

SINGAPORE: A licensed moneylender was on Monday convicted of breaching moneylending laws and fined S$114,000.

In March 2013, the Registry of Moneylenders, a division of the Insolvency and Public Trustee's Office, had brought charges in the Subordinate Courts against Lee Kong Meng, the sole proprietor of moneylending business Primacy Management Services.

Primacy Management Services held a moneylending licence from 2 May 2008 to 1 May 2012.

But it was not renewed after it expired, after investigations found that the licensee had committed offences which warranted prosecution.

On Monday in court, Lee pleaded guilty and was convicted on 23 out of 78 charges.

The charges include offences such as carrying on the business of moneylending at a place without the approval of the Registrar, recklessly furnishing false information to the Registrar and granting loans without the borrowers first applying to the licensee for the loans.

The remaining 55 charges were taken into consideration by the court for the purposes of sentencing.

If Tan defaults on the court fine of S$114,000, he would be jailed 38 weeks.

Thirteen licensed moneylenders have been convicted and fined since 2011.

The Registry of Moneylenders carries out regular inspections of licensed moneylenders.

Where breaches of moneylending laws are found, enforcement measures will be taken, including the suspension or revocation of licences, forfeiture of security deposits, warnings and prosecutions.

Those convicted of breaches of the Moneylenders Act and Rules face a fine of up to S$40,000 and an imprisonment term of up to two years on each charge.   - CNA/xq

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