Litigation & Dispute Resolution Partner Lionel Chan and his team (including Senior Associate Beatrice Yeo and Associate Ilene Chua) recently succeeded in representing the National Bank of Oman in a claim against the 5 remaining Defendants in the action.
The Defendants had perpetuated a fraud by incorporating various companies to impersonate entities related to multinational oil majors such as British Petroleum and Total in order to induce the National Bank of Oman to extend trade credit facilities. Fictitious transaction documents were then created by the Defendants in order to fraudulently drawdown on these trade credit facilities. These funds were thereafter dissipated to various different entities controlled by the Defendants.
The disputes team also succeeded in the bank’s alternative claims against the Defendants in constructive trust, knowing receipt, and unjust enrichment.
Significantly, the High Court also found it fitting to impose a remedial constructive trust over the fraud proceeds even though the Court had acknowledged that a remedial constructive trust is “only to be imposed sparingly”. Indeed, this appears to be the first case in Singapore where the Court has imposed a remedial constructive trust.
In finding for the National Bank of Oman, the remaining defendants’ contention that the bank’s representatives had colluded in the defendants’ fraudulent scheme was rejected. The remaining defendants’ submission of “no case to answer” was also dismissed.
The remaining defendants’ submission of “no case to answer” was also dismissed.
The judgment can be read here.