COO of MDR Limited Sentenced for Misappropriating S$2.5 Million

The chief operating officer of MDR Limited, a mobile phone company listed on the Singapore Exchange, has been sentenced to five-and-a-half years in prison for misappropriating company assets exceeding S$2.5 million (approximately US$1.95 million). Richard Siua Cheng Foo, aged 54, pleaded guilty to one count of criminal breach of trust on January 6, 2023, with four additional charges considered during sentencing.

Details of the Offense

The court heard that Siua abused his position as COO and concurrently held roles as chief executive officer and registered director of several subsidiaries within MDR Limited. His misappropriation began in November 2020, driven by a gambling addiction that led him to sell company-owned mobile devices for personal profit. Siua directed employees to withdraw devices from marketing funds intended for promotional efforts, exploiting their trust in his authority.

Over a span of approximately one year, Siua misappropriated a total of 4,057 mobile devices. He manipulated employees into drawing down funds meant for marketing campaigns, claiming the devices were necessary for business purposes. Once he obtained the items, he sold them with the assistance of a friend who was a director at another mobile phone business. This friend received a portion of the proceeds, which Siua used to repay personal loans.

Discovery and Legal Proceedings

The fraudulent activities came to light in December 2021 when Siua approached the CEO of MDR Limited for a company loan. Concerned about his financial situation, the CEO requested a review of Siua’s financial activities. Investigations by the finance department revealed a significant increase in marketing expenditures compared to previous years and numerous requests for mobile devices. Following a confrontation during a board meeting, Siua confessed to his actions.

The CEO subsequently filed a police report, leading to Siua’s surrender to law enforcement. Despite the efforts to recover the misappropriated assets, none were retrieved. The prosecution recommended a sentence of five-and-a-half to six years, emphasizing the severity of the breach and the trust Siua had violated.

In his defense, Siua’s lawyer highlighted his two decades of service to the company and described his gambling addiction as a tragic downfall. Siua is currently classified as an undischarged bankrupt. For his actions, he faced a potential maximum sentence of 20 years in prison, with the possibility of doubled penalties due to the numerous offenses involved.

As the case concludes, it serves as a reminder of the consequences of financial misconduct and the importance of corporate oversight.