He uses dud cheques to scam bank of $2.1million
YOU could say he was a bank robber with a difference.
By Andre Yeo
30 July 2008
YOU could say he was a bank robber with a difference.
Instead of a gun, he hit banks with just a simple plan. And it made
him $2.1 million richer - until the law caught up with him.
Quah Lai Meng, 33, was working in a handphone shop when he noticed
what he thought was a chink in the armour of the banking industry -
the cashline facility.
Through this facility, banks provide ready cash to consumers who
then repay the amount with interest.
In November 2007, Quah forged an application form for a DBS
Cashline facility using the particulars of his friend, Luah Kian
Hing. Luah has been charged and his case is pending.
DBS issued a credit card and cashline cheque book in Luah's name
but sent them to Quah's address.
The credit limit was $5,000.
Quah, who has only PSLE qualifications, then executed his plan to
defraud DBS, according to court documents.
Quah, who is single and was engaged to be married, withdrew the
maximum $5,000 from the DBS Cashline account.
LIMIT REACHED
He knew that before he could make more withdrawals, he had to make
repayments into the account since the credit limit had been
reached.
He prepared several cheques, which belonged to some friends, to
make payments into the account.
Court documents did not identify these friends nor explain the role
they played in this scam.
These dud cheques belonged to accounts that had no money. His plan
was to dupe DBS into thinking he had already settled his
outstanding debts.
Quah knew it would take one to two days for the bank to realise
this.
On 27 Dec 2007, he deposited a UOB cheque for $46,700 into the DBS
Cashline account. Two days later, he went to the POSB branch at
Hougang Central and withdrew $3,000.
It was easy money for him and he did it again on 9 Jan this
year.
He deposited an OCBC cheque for $570,000 into the DBS Cashline
account.
The next day, he got his sister-in-law, Lim Wee Ching, to withdraw
$128,000 from the POSB branch at Hougang Central. He then got her
to keep the money for him.
On another occasion, Quah got his brother, Lai Huat, to keep
$200,000 for him. He had got the money as a result of cheating
DBS.
Quah struck again on 15 Jan, at the POSB branch at Funan DigitaLife
Mall. He left the branch with $240,000 in cash.
DBS finally got wind of what he was up to and lodged a police
report.
NABBED
On 22 Jan, Quah was arrested at Ang Mo Kio Central.
Between 10 Dec 2007 and 22 Jan, he had cheated DBS of a total of
$2.13m.
Quah faced 46 charges of cheating, forgery, transferring benefits
of criminal conduct, and possession of four Erimin 5 tablets, a
controlled drug. Two charges come under the Customs Act of buying
13 cartons of cigarettes with unpaid duty worth almost
$1,000.
The prosecution proceeded with 13charges while the rest were taken
into consideration.
In the Subordinate Courts last Friday , Quah was convicted after
pleading guilty to all charges.
In mitigation, his lawyer Ms Gloria James said there was no
elaborate plan by her client to cheat the banks.
Quah had readily admitted that he had taken advantage of an
'inherent flaw in the banking system'.
In a handwritten note to the court, he said he had no plans to
commit the crime until he tried his luck to see if the cheques
would clear.
He said it was a gamble and added: 'I just kept rolling on it until
the sums grew and I was eventually caught.
'I did this out of greed...'
About $1.6m has been recovered.
Ms James said Quah spent $80,000 of the $500,000 that has not been
recovered.
His next court appearance will be on 15 Aug when corrective
training and preventive detention reports will be submitted.
Police investigations are ongoing.
DBS pride itself to be bureaucratic and stringent in its
processes. Yet, it allowed the borrower to exceed his $5,000
exposure limit and allowed cheque books be sent to an address not
found in borrower's record.
Can depositors be assured their cash savings are well taken care
as well?
