Criminal Breach Of Trust In Singapore (CBT): A Lawyer’s Guide

What is Criminal Breach Of Trust (CBT) In Singapore?

In Singapore, according to section 405 of the penal code, a criminal breach of trust is deemed to be committed when someone who is in any manner entrusted with property, or with any dominion over property or funds dishonestly misappropriates or converts to his own use that property, or dishonestly uses or disposes of that property in violation of any direction of law prescribing the mode in which such trust is to be discharged, or of any legal contract, express or implied, which he has made touching the discharge of such trust, or intentionally suffers any other person to do so, commits “criminal breach of trust”.

Put simply, when someone who is entrusted with property or funds, dishonestly misappropriates those properties or funds for his own benefits, criminal breach of trust is deemed to have been committed.

This misappropriation can be in any (but not limited to) the following forms:

• Misappropriation of the funds or property
• Converting of the funds or property for his own use
• Uses the funds or property in violation of any law or contract
• Deliberately allows another person to do any of the above activities

In Singapore, CBT generally consists of 3 main elements, and the presence of these elements is used by the courts to determine whether the accused is guilty of CBT or other offences

Entrustment

In order for criminal breach of trust to be committed, the accused has to either be entrusted with the funds or property, or have control over them in some way. A simple example would be as follows:

Mr Ong, who is a warehouse owner, entrusts Mr David, an employee of Mr Ong, with the warehouse, and the goods that are kept in the warehouse when Mr Ong goes overseas. Mr David dishonestly sells the goods in the warehouse and keeps the proceeds for his own use. Mr Davis is deemed to have dishonestly misappropriated the goods and is liable for CBT. 

Dishonesty

The accused has to be proven to have acted dishonestly. An example would as follows:

Mr Goh, a company director of Goh Pte Ltd, cashes a company cheque worth $100,000 to repay his gambling debts. This then results in the company not being able to pay its suppliers. Mr Goh is liable for CBT as his dishonest actions have caused a loss to the victim (the company).

Misappropriation Of Funds Or Property or Conversion Of Property

This involves moving, or “pocketing” property or funds that are meant for another purpose. An example of this would be the case of Jeffrey Ong, a lawyer in Singapore that allegedly misappropriated client’s funds that were kept in escrow amounting to $33 million. Jeffrey Ong was charged with committing criminal breach of trust as an attorney by pocketing US$4.85 million (S$6.64 million) from the law firm’s Standard Chartered bank account around Oct 23, 2017.

This is the most aggravated form of criminal breach of trust, and is punishable by a life sentence in Singapore.

Dishonest conversion of funds or property simply means using another person’s property as though it were yours. An example would be as follows:

Melissa, a property agent, is entrusted by her client, Mrs Linda Ong, to rent out a commercial property that belongs to Mrs Linda Ong. Melissa then dishonestly rents the property to a business for use as a cafe, and pockets the monthly rental fees to supplement her lavish lifestyle.

Allowing someone to misuse or misappropriate property or funds

In some cases, someone who has been entrusted with property may deliberately allow another person to dishonestly misuse or misappropriate the property, may be liable for criminal breach of trust in Singapore.

Types Of Criminal Breach Of Trust (CBT) In Singapore and Their Respective Penalties/Punishments

The punishment for CBT in Singapore varies according to the nature of the crime.

Regular Criminal Breach Of Trust

Persons found guilty of committing regular Criminal Breach Of Trust can be imprisoned for a term of up to 7 years and/or a fine that will be determined by the courts.

Aggravated Criminal Breach Of Trust

Accused persons who hold a special position of power, and are deemed to have abused that power may be charged under the Penal Code provisions for aggravated criminal breach of trust.

The following groups of people stand to face the most severe punishment is they commit criminal breach of trust:

• Public Servants
• Bankers
• Lawyers
• Company Directors or Key Management Personnel

If convicted under section 409 of the Penal Code, they may face up to 20 years of imprisonment and a fine.

These harsher punishments serve as deterrents for people who hold positions of trust. 

Can One Be Arrested For Criminal Breach Of Trust In Singapore?

Any form of criminal breach of trust in (CBT) in Singapore is an arrestable offence, where the police can arrest a suspect without a warrant.

For example, if the authorities received a tipoff from a member of the public about financial irregularities in a charity such as a church, and the police reasonably suspect that CBT might have been committed, the alleged offenders can be arrested without a warrant.

Criminal Breach Of Trust Cases In Singapore

City Harvest Case 

Chia Teck Leng 

https://thekopi.co/2020/01/15/white-collar-criminal/

https://www.supremecourt.gov.sg/docs/default-source/module-document/judgement/2004-sghc-68.pdf

Teo Cheng Kiat 

https://www.supremecourt.gov.sg/docs/default-source/module-document/judgement/2000-sghc-129.pdf

https://www.straitstimes.com/singapore/courts-crime/former-accountant-allegedly-pocketed-40m-6-other-cases-here-involving

Conclusion

Criminal Breach of Trust in Singapore is a serious offence. If you’re facing arrest or prosecution for offences relating to Criminal Breach of Trust, we strongly advise you to contact an experienced criminal lawyer in Singapore who will be able to assist you.