The Straits Times
www.straitstimes.com
Published on Oct 12, 2012
RAID ON GOLD TRADER
CAD issues advice to clients of scandal-hit firm
Police to assist in recovering monies if probe reveals criminal offences
By magdalen ng
THE Commercial Affairs Department (CAD) has issued a set of questions and answers on its website to address investor concerns over scandal-hit gold trading firm Genneva.
The Genneva office in Orchard Towers was raided by officials two weeks ago, on the basis of alleged "financial improprieties". The company's operations in Malaysia are facing similar scrutiny from the Malaysian authorities.
Genneva has an estimated 10,000 to 20,000 customers here.
The white-collar crime unit said on its website that investigations are under way, and that queries on payouts and buy-back guarantees by Genneva should be addressed to the company.
The CAD added on its website that if the investigation reveals that criminal offences have been committed, the police will do their best to ensure that monies that have been illegally obtained are recovered, and properly dealt with according to the law.
For investors concerned over whether the gold they deposited with the company has been seized by the CAD, it said that police officers are empowered to seize any property in respect of which an offence is suspected to have been committed under the Criminal Procedure Code.
However, the CAD cannot publicly release the details of the assets seized in the course of the investigation, and is unable to confirm whether individual items deposited with Genneva were among the items seized.
Investigators will not be able to return any gold or money seized to investors, as the assets that are obtained during the course of the investigation will have to be dealt with at the discretion of the court.
The CAD will apply to the courts to deal with the seized property at the conclusion of any investigation and resulting criminal proceedings, if any.
It is unclear how long these processes will take, but the CAD said that the property will be kept in safe custody until then.
Mr David Gerald, president of the Securities Investors Association (Singapore), said that in the meantime, investors should seek legal advice immediately.
He said: "This is to see whether the lawyers can help them to track the company's assets, or the assets of the persons involved.
"Investors should also take a serious lesson from this, and they should not put all their eggs in one basket."
A financial adviser The Straits Times spoke to recommended that investors retrieve any official documents or correspondence they have had with their agents.
"They should write in to Genneva to register their interest and file a police report if they have yet to do so," he said.
Investors who have yet to be contacted by the CAD to provide information on their payments to Genneva, but wish to lodge police reports, may do so by contacting the CAD office on 9637-7625 during office hours. They can also go to Neighbourhood Police Centres.
songyuan@sph.com.sg