AsiaOne

Source: AsiaOne

SINGAPORE - A Singaporean man has filed a police report after alleging that his personal details were used without his consent to register four companies, including a cryptocurrency investment firm believed to be in debt to investors.

The 49-year-old facility maintenance manager is named a director in the four companies, including the Singapore-incorporated InvesableAI, which claims to help people - mainly in the United States - invest in cryptocurrency using artificial intelligence technology.

Investors have filed reports against InvesableAI with two US government agencies - the Federal Bureau of Investigation and the Securities and Exchange Commission - claiming that more than 150 people have sunk in more than US$1.5 million (S$2 million) into the firm but have not been able to withdraw their profits or principal sums.

Several investors have also contacted the Singapore police with information related to the firm.

The Sunday Times obtained the Singaporean man's details from InvesableAI's business record filed with the Accounting and Corporate Regulatory Authority (Acra), and visited his Housing Board flat on March 17 to speak to him about his ties to the firm.

When asked about his role in InvesableAI, the man first had a blank stare when the firm's name was mentioned.

That confusion soon gave way to concern after he noticed that his name, NRIC number and address were listed in the firm's Acra record.

As he flipped through the pages of the business record, he appeared shocked when he realised that he held director appointments in three other companies - all of which he said he did not know about.

Checks by ST found that he is named a director at Pexo, Cintery and Exby International - all "live companies" or businesses still in operation, according to Acra records.

Pexo was incorporated on Dec 23, 2020 and provides corporate finance advisory services, according to its Acra file.

Its address is a unit in the Marina Bay Financial Centre. Checks on online business directory SGPBusiness.com show that 140 other active companies share the same address.

The unit is available for rent as a virtual office address for US$143 a month.

Cintery, meanwhile, lists its business as providing management consultancy services, with a business address at 68 Circular Road - another virtual office address shared among 5,968 "live" companies, according to SGPBusiness.com.

It was incorporated on Dec 1, 2021, according to Acra records.

An Acra spokesperson said it is not uncommon for firms to share a registered office address. Acra carries out sample inspections to verify that everything is in order and investigates complaints.

"Companies are also required to declare that the registered office address they provide to Acra is correct, and update changes to their registered office address promptly with Acra," said the spokesperson.

Those who provide incorrect information can be fined up to $50,000, jailed up to two years, or both.

The last company - Exby International - was incorporated on Nov 10, 2023, and lists 12 Woodlands Square as its address. It also claims to offer financial service activities.

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All three companies were registered by foreign directors, all of whom listed residential addresses in the US state of Texas in business records with the Singapore registry. Foreigners who want to register a company in Singapore must have at least one Singaporean director.

However, a check - using publicly available information - showed that other people have been living in the Texas addresses listed, and none of them are leased out.

A US social security number provided in one of the business records matched that of a man who died in 2006, although the company was registered only in 2020.

The Singaporean man said he was "shocked and scared" to learn about his directorships and to be unknowingly linked to multiple companies.

He said his personal information may have been stolen when he lost his wallet during a holiday in Thailand in 2008, and showed ST his identity card, which was issued after he said he had lost it.

"If these companies committed crimes, then I will die because my name is there," the man said.

The police confirmed that a report has been lodged.

Asked if someone who had his personal details used without his consent, to incorporate a company, could be held liable if the business is implicated in criminal activities, lawyer Lim Yun Heng said the Companies Act offers protection if a director had acted honestly and reasonably in the circumstances.

Singapore directors who blindly sign paperwork to maintain their company's facade as a legitimate business or to deceive others, on the other hand, can be held accountable.

Mr Lim, who is an associate director at law firm Yuen Law, said: "Without actual knowledge and approval, or at least turning a blind eye to affairs which suggest something is wrong, it is unlikely that the director can be held liable for every criminal offence that the company is implicated in."

Companies can be registered in Singapore by foreigners through registered filing agents, which include corporate service providers. It is unlikely that filing agents will face charges even if they are found to be negligent, he said.

They would be liable only if they ignored obvious signs or made filings to Acra without verifying the information provided for company registration, Mr Lim added.

And if they had done so knowing that the documents are false or misleading, then the agents can be fined up to $50,000, jailed up to two years, or both, under the Companies Act.

On March 12, the Ministry of Finance and Acra called for public feedback on a proposed new law aimed at tightening scrutiny on corporate service providers.

This includes steeper financial penalties of up to $100,000 per breach for firms and senior management found guilty of failing to comply with obligations to prevent money laundering and the financing of terrorism.

The proposed law also seeks to combat the misuse of nominee directorship arrangements by prohibiting people from acting as nominee directors unless the appointments are arranged by registered corporate service providers that have assessed them to be fit and proper.

A nominee director is a non-executive role that satisfies the legal requirement of having at least one Singaporean director in a company.