Former Fullerton Healthcare Director Fined for Inflated Claims

A former director of Fullerton Healthcare Corporation, David Sin, has been fined S$160,000 (approximately US$124,000) for his role in approving inflated entertainment expense claims. His conviction, which occurred on August 21, 2023, comes amid a broader investigation into corruption involving colleagues and the former CEO of Aon Singapore, Collin Chiew.

The court granted a discharge for five corruption charges and two charges of falsifying accounts against Sin, effectively acquitting him of those allegations. This decision means that the prosecution cannot refile these charges. In a previous ruling, Sin had pleaded guilty to six charges related to falsifying accounts, involving over S$213,000 in inflated sums. He is the first of four individuals implicated in the case to face legal consequences.

Sin, now declared bankrupt, has been permitted to pay his fine in installments. His co-accused, including Michael Tan, CEO of Fullerton Healthcare Corporation, and Daniel Chan, the deputy group CEO, are still facing legal scrutiny. Chiew faces charges of bribery and money laundering. Both Tan and Chan are accused of facilitating bribes using funds from the falsified expense claims that Sin approved.

Details of the Financial Misconduct

The investigation revealed that in 2018, Chan directed Tei Chu Pink, the country managing director of Fullerton Health China, to submit inflated business expense claims. Chan claimed these expenses were for consultancy services provided by Chiew and stated that Tan had approved the arrangement. Sin subsequently approved multiple entertainment expense claims amounting to over S$334,000 in false invoices, while only about S$120,000 was legitimately spent. Sin’s actions constituted a conspiracy to defraud Fullerton Healthcare Corporation, according to prosecutors.

Deputy Public Prosecutors David Menon, Jonathan Tan, and Ashley Chin recommended a fine between S$150,000 and S$180,000, citing the severity of the offenses. Although Sin was complicit in the inflated claims, the prosecutors acknowledged that he was not the principal orchestrator and did not personally benefit from the fraudulent activities.

In defense, Sin’s legal team argued for a lower penalty of S$120,000, claiming that he was misled about the nature of the expenses by Chan and Tan, who managed the company’s daily operations. Sin’s defense attorney, Melanie Ho, admitted to lapses in corporate governance but emphasized Sin’s reliance on his colleagues’ assurances.

Implications for Corporate Governance

Judge Paul Quan noted Sin’s proactive role in investigating the flagged claims, which eventually led to the exposure of his own involvement. He remarked that Sin “went at it like a dog with a bone” when pursuing the irregularities. The defense argued that Sin initiated and cooperated with independent investigations to ensure the company maintained a clean reputation. This effort, they claimed, was intended to protect Fullerton Healthcare’s prospects for a public listing or sale.

While the judge recognized Sin’s remorse and cooperation as mitigating factors, he also emphasized that Sin’s position as a director required him to exercise oversight over his colleagues. The ruling highlighted the expectation that Sin, Tan, and Chan should have functioned as checks on each other’s actions given their ability to approve claims without oversight from the finance team.

The ongoing trials for Chiew, Tan, and Chan are set to begin in September 2023, with Sin’s willingness to testify against his former colleagues raising further questions about accountability and governance within the organization. As this case unfolds, it serves as a critical reminder of the importance of ethical practices and transparency in corporate operations.