A Singapore entrepreneur faces an additional legal charge over a S$61 million promissory note scheme that raised funds from the public without the required investment prospectus.
KEY POINTS
IN SIMPLE TERMS
A business leader is accused of raising over S$61 million from the public by selling investment notes (like IOUs) that promised 10% interest, but he did not provide the official document (prospectus) that investors need to understand the risks. Singapore law requires this document to be registered before any investment can be sold to the public.
WHY IT MATTERS
WHERE DO YOU STAND?
Do you think Singapore's penalties for selling unregistered securities are tough enough to deter such schemes?
👍 👎 Vote ↓Singapore entrepreneur David Yong, who appeared on the Netflix show Super Rich in Korea, has been handed another legal charge over a S$61 million promissory note arrangement at Evergreen Holdings.
In a press release by SPF, Yong Khung Lin, known as David Yong, now faces an extra legal charge as of 3 June 2025.
Yong leads Evergreen Group Holdings as Chief Executive Officer.
This additional charge is made under the Securities and Futures Act 2001 (SFA).
Yong’s new charge is related to violations of the Securities and Futures Act, which requires proper disclosure to investors.
David Yong’s extra charge involves his consent to Evergreen GRP Holdings Pte Ltd’s arrangement.
This arrangement dealt with offering promissory notes between July 2023 and July 2024.
A promissory note is a legal document that works like a written promise. It says that one party (the borrower) agrees to pay a certain amount of money to another party (the lender) at a specific time, or whenever the lender asks for it.
More than S$61M was raised from the public in this period.
Over 1,000 promissory notes were issued with a promised 10% annual interest.
As stated in the SPF press release, “Under the SFA, any offer of securities must be made in or accompanied by a prospectus that is lodged with and registered by the Monetary Authority of Singapore, unless an exemption applies.”
The lack of this required prospectus is the main issue behind the new charge.
Investors were promised a 10% annual interest without the offering being accompanied by a registered prospectus as required.
The SFA sets rules for giving out investments such as promissory notes in Singapore.
When a business offers a security or an investment to the public, it must provide an investment prospectus unless it qualifies for an exemption.
The prospectus must be registered with the Monetary Authority of Singapore (MAS).
This document offers details for investors and their advisers to make the right decision.
According to SPF, “The prospectus must contain all the information that investors and their advisers would reasonably require to make an informed investment decision.”
Singapore’s laws protect the public from risky investments by ensuring transparency.
Yong now faces a total of five charges.
He is already accused of four counts of falsifying accounts under Section 477A of the Penal Code (PC).
The new charge is for consenting to EGR offering securities without a prospectus, under Section 240(1) with Section 331(1) of the SFA.
All promissory note offers and issuances are included in this combined charge.
| Charge | Law Section | Potential Penalty |
|---|---|---|
| Falsification of Accounts | Section 477A PC | Up to 10 years jail and/or fine |
| Offering Securities without Prospectus | Section 240(1) & 331(1) SFA | Up to 2 years jail and/or $150,000 fine |
| Combined Offence | Section 124(4) CPC | Double penalty of main offence |
Yong now faces multiple charges related to his role at Evergreen Group Holdings.
These charges carry heavy punishments in Singapore.
A conviction for falsification of accounts may lead to up to 10 years in jail, a fine, or both.
For offering securities without a registered prospectus, the punishment can be up to 2 years in jail and/or a fine of S$150,000.
If convicted of the combined charge under Section 124(4) of the CPC, Yong could face twice the punishment applicable to that specific offence.
Yong, who gained fame on Netflix’s Super Rich in Korea, is now being watched by many for his legal situation.
Do you feel that Singapore’s legal penalties are strict enough to stop risky investment practices?
Do you think Singapore's penalties for selling unregistered securities are tough enough to deter such schemes?
Be the first to weigh in.
