Founder of Zenrock Sued For $105-M Fraud

A founder and director of collapsed Singapore oil trader Zenrock Commodities and his co-conspirator were charged in court on Friday (July 8) for offenses involving more than US$105 million (S$147 million), Prisca Ang reported for Straits Times.

Photo Insert: Zenrock's ex-president and director, Singaporean Xie Chun, 45, and its ex-operations executive, Chinese national Zhang Taiming, 32, were both charged with four counts: two of cheating and one each of forgery and criminal breach of trust.

Zenrock's ex-president and director, Singaporean Xie Chun, 45, and its ex-operations executive, Chinese national Zhang Taiming, 32, were both charged with four counts: two of cheating and one each of forgery and criminal breach of trust.

According to Commercial Affairs Department investigations, the two allegedly utilized fake documents to defraud the Bank of China's Singapore branch of US$54 million between February and March 2020.

The individuals reportedly deceived the bank into believing Zenrock had agreed to sell a cargo of oil to the French oil dealer Total Oil Trading. According to charge sheets obtained by the Straits Times, this prompted it to issue an irrevocable letter of credit for up to US$54 million in favor of Shandong Energy International (Singapore).

Shandong was involved in a series of round-tripping transactions, in which sales and profits were overstated by selling the same commodity to multiple parties in order to create a false trading volume.

Both Xie and Zhang are accused of defrauding Credit Agricole Corporate and Investment Bank's Singapore office by dishonestly re-assigning to the Bank of China revenues from a cargo oil transaction that had been charged to HSBC (Singapore).

The bank was duped into thinking Zenrock had agreed to sell a cargo of oil to Total Oil Trading, so it issued an irrevocable letter of credit in favor of PPT Energy Trading, another participant in the round-tripping transactions.

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