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Post by : Rohit Dhiman
A Singapore man has been sentenced to eight years and nine months in prison after being found guilty of deceiving 11 victims and causing losses of around S$3.79 million through a fake medical supply business during the COVID-19 pandemic.
The accused, Gerald Chan Tzen-Chou, 48, took advantage of the rising demand for medical equipment during the early stages of the COVID-19 outbreak in 2020. He falsely claimed that he could supply products such as surgical gloves, face masks, and hand sanitiser to customers. According to court proceedings, Chan presented himself as an authorised distributor of 3M surgical face masks and claimed that his supplies were being provided to hospitals in Singapore. To make his claims appear genuine, he displayed boxes of medical products at his offices. However, investigations revealed that some of the supplies were purchased from online marketplaces rather than being sourced through official channels.
The court heard that Chan used several methods to gain the confidence of his victims. Initially, he completed small orders to create trust before encouraging customers to place larger purchases. One victim was convinced to invest in a supposed factory in Indonesia that was allegedly producing surgical masks. Chan claimed the investment would generate daily returns, but authorities found that neither the factory nor the investment opportunity existed. The largest victim lost S$850,000 after being misled into believing that Chan had access to millions of surgical masks arriving in Singapore. She paid a large deposit after being told that hospitals and companies were waiting for the supplies.
Court documents showed that Chan used the money received from victims for personal expenses, maintaining his offices and purchasing gifts. He also lost about S$418,933 through gambling activities at Marina Bay Sands between December 2019 and April 2020. Authorities said Chan continued his fraudulent activities even after being released on bail, leading to further complaints and police reports.
Deputy Public Prosecutor Xavier Tan argued that the offence was particularly serious because Chan exploited the global health crisis to carry out the scam and caused significant financial harm to victims. The prosecution highlighted that victims still faced losses exceeding S$3.2 million, despite Chan making partial repayment of S$585,500 to three individuals. District Judge Paul Quan stated that the major concern in the case was the financial damage suffered by the victims. He also considered Chan committing further offences while on bail as an aggravating factor. The court ultimately sentenced him to eight years and nine months’ imprisonment, backdated to December 2020 when he was first remanded.
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The case has highlighted the risks of fraudulent schemes that emerged during the COVID-19 crisis, when global demand for essential medical products increased sharply. Authorities have warned businesses and individuals to verify suppliers carefully before making payments, especially during emergencies when scammers may attempt to exploit shortages and public fears.
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