Oct 13, 2006
Lawyer in cashback deal fails to get case dropped
Accused of helping client make false claim, he may file High Court application
By Elena Chong
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 ON TRIAL: Bachoo Mohan Singh (above) allegedly helped his client, a flat owner, file a suit containing a false claims againts the flat's buyers. | |
THE lawyer charged in a 'cashback' property deal has failed to persuade a judge to throw out the case against him. Bachoo Mohan Singh, 58, has been on trial for 36 days for allegedly helping a client make a false claim before a court two years ago.
The lawyer had represented an aggrieved flat owner, Mr Koh Sia Kang, 52, when he sued the buyers of his flat over a botched sale. Singh is said to have instructed law firm K.K. Yap & Partners, where he worked as a consultant, to file the suit containing a false claim against the buyers.
The cashback scam involves declaring a higher price for a property than its actual sale price in order to secure a higher loan for the buyer. The cash difference between the real and declared price is then kept by the buyer, or split between buyer and seller.
Reports of illegal cashback deals prompted the Government to introduce regulations to ban the practice.
Mr Koh's case went to court after he claimed he was cheated of money in the transaction. He also sued the property agent who had arranged the aborted sale to a couple.
Property agent Kereen Teo Pei Pei, 28, was the first person to be convicted in a cashback deal. She was fired from real estate company PropNex after she was fined $8,000 last year for trying to cheat DBS Bank by inflating the selling price of Mr Koh's $390,000 five-room Redhill flat by $100,000. Her manager was given a similar fine.
On July 7, Deputy Public Prosecutors Lee Sing Lit, Vincent Leow and Tan Wee Soon closed their case against Singh after calling 10 witnesses.
They argued that the evidence clearly showed that the $490,000 sale price of the flat was solely to enable the buyers to take a higher loan from the bank in a cashback. They said both Mr Koh and Singh knew of this before the suit was filed.
Singh's lawyer, Senior Counsel K. Shanmugam, had argued that the prosecution had failed to prove that the claim was false, or that Mr Koh was dishonest in making the claim. He also argued that Singh did not know that Mr Koh was dishonest in making the false claim.
But yesterday, District Judge Bala Reddy found that the prosecution had made out a case and called on Singh to enter his defence.
Mr Shanmugam subsequently told the court that Singh is considering filing an application to the High Court to rule on a legal point related to his case.
The case was adjourned to next Monday to give Singh time to decide his next course of action.
elena@sph.com.sg
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