Singapore MAS Issues 8 Year Ban on Great Eastern Life Advisor for Cheating $50,000 from 9 Clients, Penalty Fees to Maintain Insurance Policy, Money for Lung Cancer Treatment & Activated Policy Loan
14th December 2022 | Singapore
Singapore central bank Monetary Authority of Singapore (MAS) has issued a 8 year ban (Prohibition Order) on former Great Eastern Life Assurance advisor (Selvarajulu S/O Subramaniam) following his Singapore court conviction for cheating 9 clients of $50,000 (S$58,000) including deceiving client of required penalty fees to maintain insurance policy, deceiving client he needed money for lung cancer treatment, and activating policy loans for clients with part of the money transferred to him. Singapore MAS: “On 24 September 2021, Mr Selvarajulu was convicted of 4 counts of cheating under section 420 of the Penal Code while another 7 counts were taken into consideration. He was sentenced to 17 months’ imprisonment … … Mr Selvarajulu’s convictions gave MAS reason to believe that he has not performed, and will not perform, the type of financial advisory service for which he was appointed honestly.” See below for Singapore MAS announcement:
“ Singapore MAS Issues 8 Year Ban on Great Eastern Life Advisor for Cheating $50,000 from 9 Clients, Penalty Fees to Maintain Insurance Policy, Money for Lung Cancer Treatment & Activated Policy Loan “
Singapore MAS – Section 420 of the Penal Code (Cap. 224, Rev Ed 2008) – Under this section, whoever cheats and thereby dishonestly induces the person deceived to deliver or cause the delivery of any property to any person, or to make, alter or destroy the whole or any part of a valuable security, or anything which is signed or sealed, and which is capable of being converted into a valuable security, shall be punished with imprisonment for a term which may extend to 10 years, and shall also be liable to fine.
Singapore MAS issues Prohibition Orders against Mr Selvarajulu S/O Subramaniam for cheating
MAS issues Prohibition Orders against Mr Selvarajulu S/O Subramaniam for cheating
14th Dec 2022 – The Monetary Authority of Singapore (MAS) has issued 8-year prohibition orders (POs) against Mr Selvarajulu S/O Subramaniam, a former representative of The Great Eastern Life Assurance Company Limited (Great Eastern). The POs were issued following his conviction in the State Courts for cheating offences.
Under the POs, which will take effect from 14 December 2022, Mr Selvarajulu is prohibited from providing any financial advisory services, and from taking part in the management, acting as a director, or becoming a substantial shareholder, of any financial advisory firm under the Financial Advisers Act 2001. He is also prohibited from carrying on business as, and from taking part in the management of, any insurance intermediary under the Insurance Act 1996.
Between September 2017 and July 2019, while Mr Selvarajulu was a representative of Great Eastern, he deceived 9 customers to hand over about $58,000. These included the following 4 cases.
- 2 customers were deceived into believing that they would be able to reinstate the cash value of their policies through a “refunding plan”, which was in fact a policy loan. On Mr Selvarajulu’s instructions, the customers subsequently transferred part of the monies they had received from the policy loan to him.
- 1 customer was deceived into believing that he was required to pay penalty fees to keep his Great Eastern insurance policies active.
- 1 customer was deceived into believing that Mr Selvarajulu was receiving medical treatment for lung cancer and needed money for his medical expenses.
On 24 September 2021, Mr Selvarajulu was convicted of 4 counts of cheating under section 420 of the Penal Code while another 7 counts were taken into consideration. He was sentenced to 17 months’ imprisonment.
Mr Selvarajulu’s convictions gave MAS reason to believe that he has not performed, and will not perform, the type of financial advisory service for which he was appointed honestly.
Founded in 1908, Great Eastern is a well-established market leader and trusted brand in Singapore and Malaysia. With over S$100 billion in assets and more than 13 million policyholders, including 10.5 million from government schemes, it provides insurance solutions to customers through three successful distribution channels – a tied agency force, bancassurance, and financial advisory firm Great Eastern Financial Advisers. The Group also operates in Indonesia and Brunei. The Great Eastern Life Assurance Company Limited and Great Eastern General Insurance Limited have been assigned the financial strength and counterparty credit ratings of “AA-” by Standard and Poor’s since 2010, one of the highest among Asian life insurance companies. Great Eastern’s asset management subsidiary, Lion Global Investors Limited, is one of the largest private sector asset management companies in Southeast Asia. Great Eastern is a subsidiary of OCBC Bank, the longest established Singapore bank, formed in 1932. It is now the second largest financial services group in Southeast Asia by assets and one of the world’s most highly-rated banks, with an Aa1 rating from Moody’s. Recognised for its financial strength and stability, OCBC Bank is consistently ranked among the World’s Top 50 Safest Banks by Global Finance and has been named Best Managed Bank in Singapore by The Asian Banker.
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