The vast international criminal allegations against Cambodian tycoon Chen Zhi have been further complicated by revelations that he was allegedly defrauded of millions by the director of his own Singapore-based family office years before facing U.S. federal indictment. Court documents in Singapore detail a stunning case of alleged internal fraud that offers a rare glimpse into the complex machinery of Chen’s global wealth operations now under international scrutiny.
The unraveling began in mid-2021, when Chen’s family office initiated legal proceedings in Singapore against David Wong, the office’s sole director, accusing him of misappropriating over S$5.84 million (approximately US$4.5 million) from an OCBC bank account. Singapore’s High Court subsequently issued a default judgment in 2022, holding Wong and affiliated entities liable for over S$12 million. Wong, a Singaporean national who has denied all wrongdoing, has since sought bankruptcy protection.
How the Family Office Arrangement Crumbled
Chen initially engaged Wong in 2017 to establish a sophisticated family-office structure in Singapore, coinciding with Chen’s pursuit of permanent residency in the city-state. By 2018, Wong had successfully set up entities, including DW Capital Holdings, and secured critical tax-exemption status under Singapore’s framework for ultra-high-net-worth individuals, which is overseen by the Monetary Authority of Singapore.
Wong managed a network of corporate entities—including Skyline Investment Management and CMFO—and maintained relationships with multiple top-tier financial institutions, securing access to banks such as OCBC, Bank of Singapore, and Deutsche Bank.
The relationship soured when auditors, led by Karen Chen Xiuling, began examining the financial and government filings necessary to substantiate Chen’s wealth. Red flags quickly emerged in 2021:
- Entities under Wong’s control appeared to be transferring significant, potentially questionable, fees to one another.
- The family office address was purportedly being used by businesses with no connection to Chen.
- Staff faced serious access issues, culminating in the deactivation of keycards at the Duo Tower office.
A critical moment came when auditors attempted to retrieve complete bank statements from OCBC and were refused. Partial records revealed millions had seemingly been transferred over several years without Chen’s knowledge, often routed to entities whose names closely mirrored Wong’s personal companies. Prior to the full fallout, a separate broker had already intercepted and blocked an attempted transfer to Wong’s personal account. When auditors eventually regained entry to the office space, they found it had been largely cleared out.
From Victim to International Target
While Chen pursued civil claims in Singapore as the victim of internal financial misconduct, his international profile darkened significantly. Last month, the U.S. Department of Justice charged the 37-year-old founder of Prince Group with grave offences, including money laundering, fraud, and operating massive forced-labor “scam compounds” in Cambodia. These compounds allegedly employed trafficked workers in so-called “pig-butchering” schemes, reported to have extracted billions from victims globally through online investment and cryptocurrency scams. Chen and Prince Group have denied all criminal conduct, but if convicted, Chen faces a potential sentence of up to 40 years in prison.
The contrast between Chen’s open operation of a substantial wealth management structure in Singapore and his status as an international fugitive sought by the U.S. Department of Justice highlights significant challenges for global financial oversight.
Regional Crackdown Intensifies
In response to the alleged crimes, regional authorities have significantly ramped up enforcement. The U.S. Treasury has designated 146 individuals linked to this network, calling it the largest such sanction in Southeast Asia, with the UK implementing parallel measures.
In Singapore, police recently seized assets exceeding S$150 million linked to Prince Group, including properties, bank accounts, and luxury vehicles, following intelligence from the Suspicious Transaction Reporting Office. In addition, financial institutions had earlier reported suspicious transactions and closed related accounts. Hong Kong has also frozen HK$2.75 billion (US$354 million) in syndicate-related assets, while Taiwan has apprehended 25 suspects.
As of early November, Chen’s family office in Singapore has reportedly been shuttered, its principal still unaccounted for, underscoring the swift and definitive end to what was once a highly sophisticated, multi-jurisdictional financial operation. The case serves as a stark reminder of the rigorous due diligence required for private wealth management, especially when navigating complex international structures.