Former Fullerton Healthcare Director Fined for Inflated Claims

A former director of Fullerton Healthcare has been fined S$160,000 (approximately US$124,000) for approving inflated entertainment expense claims. On August 21, 2023, the court cleared David Sin, 46, of bribery charges related to an alleged corruption case involving colleagues and the former CEO of Aon Singapore, Collin Chiew.

The judge granted the prosecution’s request to discharge Sin on five corruption charges and two charges of falsifying accounts. This ruling means these charges have been withdrawn and cannot be refiled. Sin had previously pleaded guilty to six other charges of falsifying accounts in 2019, which involved more than S$213,000 in fraudulent claims. He is the first of four individuals linked to this case to face judicial proceedings.

Sin has been declared bankrupt and permitted to pay his fine in instalments. Chiew, now 57, continues to face accusations of bribery and money laundering. Other defendants, including Michael Tan, 51, the group CEO of Fullerton Healthcare, and Daniel Chan, 51, the deputy group CEO, are also implicated in related corruption charges. Chan is alleged to have used funds from inflated expense claims approved by Sin to pay bribes to Chiew, while Tan is accused of conspiring in these activities. Their cases remain pending, with trial dates set for September 2023.

Background on Fullerton Healthcare and Aon

Founded by doctors Tan and Chan in 2010, Fullerton Healthcare Group provides corporate healthcare solutions through a network of doctors and clinics. The company assists clients in processing health insurance claims. Sin became an investor in the company in 2013. He later helped establish Fullerton Healthcare Corporation to acquire Fullerton Healthcare Group and its subsidiaries, serving on its board of directors until 2018 before becoming president.

In 2014, Fullerton Healthcare secured a contract to administer the Aon Care healthcare plan created by Aon Singapore. Under this plan, six insurance companies, including Great Eastern, AIA, and AXA, agreed to utilize Fullerton Healthcare as their service provider, allowing clients to switch insurers annually while maintaining the same administrator.

Details of the Inflated Claims

In 2018, Chan instructed Tei Chu Pink, the China-based managing director of Fullerton Health China, to file certain business expenses using inflated entertainment invoices. Chan claimed that Tan had approved this arrangement, stating the payments were for “consultancy services” provided by Chiew. Tei communicated this to Sin, who subsequently approved multiple entertainment expense claims in 2019, despite being aware they were inflated.

Prosecutors revealed that these claims, totaling over S$334,000, were supported by false receipts, while only about S$120,000 had actually been spent. Sin’s actions contributed to a conspiracy to defraud Fullerton Healthcare Corporation.

The prosecution sought a fine of S$150,000 to S$180,000, arguing that while Sin knew about the inflated expenses, he was not the primary architect of the scheme. Sin’s defence team contended that he had been misled by Chan and Tan, asserting that Sin had trusted them to manage the company’s daily operations.

Judge Paul Quan acknowledged Sin’s role in initiating investigations into the inflated claims, which ultimately implicated him. He noted that Sin pursued these irregularities vigorously, leading to a complaint being filed with the Corrupt Practices Investigation Bureau. The judge found this conduct indicative of Sin’s remorse and cooperation with authorities, which contributed to a slight reduction in his fine.

Despite acknowledging that Sin should have exercised greater oversight over Chan and Tan, Judge Quan emphasized the expectation that the three individuals would maintain checks and balances due to their positions of authority within the company.