Public Prosecutor v Chong Hock Yen and others

• Jurisdiction: Singapore
• Judge: Jasbendar Kaur
• Judgment Date: 26 January 2021
• Neutral Citation: [2021] SGDC 13
• Court: District Court (Singapore)
• Hearing Date: 12 October 2020,17 September 2020
• Docket Number: District Arrest Case No 934399 of 2018 & 42 Ors, Magistrate’s Appeal No 9842-2020-01 & 02, District Summons Case No 900745 & 38 Ors, Magistrate’s Appeal No 9840-2020-01, District Summons Case No 900739 of 2018 & 2 Ors, Magistrate’s Appeal No 9839-2020-01, District Summons Case No 900740 of 2018, Magistrate’s Appeal No 9841-2020-01
• Plaintiff Counsel: [Grace Lim, Thiam Jia Min & Charis Low] (Attorney-General's Chambers)
• Defendant Counsel: [N Sreenivasan S.C., S Balamurugan & Eva Teh Jing Hui] (M/s K&L Gates Straits Law LLC)
• Subject Matter: Criminal Procedure and Sentencing,Sentencing,United Nations (Sanctions,DPRK) Regulations 2010,Breach of United Nations Sanctions
• Published date: 03 February 2021

District Judge Jasbendar Kaur: Introduction

The accused Chong Hock Yen ( hereinafter known as “CHY”), 59-year old male Singaporean and the corporate entities, SCN Singapore Pte Ltd, Sindok Trading Pte Ltd and Laurich International Pte Ltd pleaded guilty before me on 17 September 2020 to charges under Regulations 5(a) read with Regulation 16(1) of the United Nations (Sanctions – Democratic People’s Republic of Korea) Regulations 2010, punishable under Section 5(1) of the United Nations Act (Cap. 339, 2002 Rev. Ed) for supplying designated luxury items like perfumes, cosmetics, watches of metal clad with a precious metal and musical instruments to entities in the Democratic People’s Republic of Korea (the “DPRK”).

Regulation 5(a) read with Regulation 16(1) of the United Nations (Sanctions – Democratic People’s Republic of Korea) Regulations 2010 (“the UN-DPRK Regulations”) provides that it is illegal for any person in Singapore to supply, sell or transfer, directly or indirectly, any designated export item or designated luxury item to any person in the DPRK and this offence is punishable under Section 5(1) of the United Nations Act (Cap. 339, 2002 Rev. Ed) (“the UN Act”). Regulation 5(a) the UN-DPRK Regulations and section 5(1) the UN Act read as follows:

Regulation 5(a) - Prohibition against supplying or procuring certain items
5.	No person in Singapore and no citizen of Singapore outside Singapore shall —
	(a) supply, sell or transfer, directly or indirectly, any designated export item or designated luxury item to any person in the Democratic People’s Republic of Korea, whether or not the item originated in Singapore;
Section 5 - Liability for breach of regulations
5.—(1)	Every person who commits, or attempts to commit, or does any act with intent to commit, or counsels, procures, aids, abets, or incites any other person to commit, or conspires with any other person (whether in Singapore or elsewhere) to commit any offence against any regulations made under this Act shall be liable on conviction —
	(a) in the case of an individual, to a fine not exceeding $500,000 or to imprisonment for a term not exceeding 10 years or to both; or (b) in any other case, to a fine not exceeding $1 million.
5.—(1)	Every person who commits, or attempts to commit, or does any act with intent to commit, or counsels, procures, aids, abets, or incites any other person to commit, or conspires with any other person (whether in Singapore or elsewhere) to commit any offence against any regulations made under this Act shall be liable on conviction to a fine not exceeding $100,000 or to imprisonment for a term not exceeding 5 years or to both.

This case involved the supply of designated luxury items to the DPRK and the list of designated luxury items is provided at the Seventh Schedule to the Regulation of Imports and Exports Regulations in relation to the DPRK – Item 2(5) in the First column. The closed list includes items such as cosmetics, perfumes, watches and musical instruments.

The four accused pleaded guilty to the following number of charges:

1	Chong Hock Yen	Pleaded guilty to 8 charges under Reg 5(a) United Nations (Sanctions - Democratic People's Republic of Korea) Regulations 2010 (S 570/2010) r/w Reg 16(1) United Nations (Sanctions - Democratic People's Republic of Korea) Regulations 2010 (S 570/2010) p/u Section 5(1) United Nations Act (Cap 339, Rev Ed 2002) r/w Section 109 Penal Code (Cap 224, Rev Ed 2008). TIC: 35 similar charges
2	SCN Singapore Pte Ltd	Pleaded guilty to 6 charges under Reg 5(a) United Nations (Sanctions - Democratic People's Republic of Korea) Regulations 2010 (S 570/2010) r/w Reg 16(1) United Nations (Sanctions - Democratic People's Republic of Korea) Regulations 2010 (S 570/2010) p/u Section 5(1) United Nations Act (Cap 339, Rev Ed 2002) TIC: 33 similar charges
3	Sindok Trading Pte Ltd	Pleaded guilty to 1 charge under Reg 5(a) United Nations (Sanctions - Democratic People's Republic of Korea) Regulations 2010 (S 570/2010) r/w Reg 16(1) United Nations (Sanctions - Democratic People's Republic of Korea) Regulations 2010 (S 570/2010) p/u Section 5(1) United Nation. TIC: 2 charges
4	Laurich International Pte Ltd	Pleaded guilty to 1 charge that was preferred under Reg 5(a) United Nations (Sanctions - Democratic People's Republic of Korea) Regulations 2010 (S 570/2010) r/w Reg 16(1) United Nations (Sanctions - Democratic People's Republic of Korea) Regulations 2010 (S 570/2010) p/u Section 5(1)(b) United Nations Act (Cap 339, Rev Ed 2002)

In relation to Chong Hock Yen, all the charges that he pleaded guilty to generally read as follows: You…are charged that on or around … , in Singapore, did abet by engaging in a conspiracy with SCN Singapore Pte Ltd, Lam Hon Lan and Li Ik (and Li Hyon in 3 charges), to supply designated luxury items to a person in the Democratic People’s Republic of Korea (“DPRK”), and in the pursuance of that conspiracy and in order to the doing of that thing, an act took place on …, in Singapore, to wit, supplied perfumes and cosmetics (including watches of metal clad with a precious metal in 3 charges), amounting to a sum of SGD…, to the Bugsae Shop/ in the DPRK, which act was committed in consequence of your abetment, and you have thereby committed an offence under Regulation 5(a) read with Regulation 16(1) of the United Nations (Sanctions – Democratic People’s Republic of Korea) Regulations 2010, which offence is punishable under Section 5(1) of the United Nations Act (Cap. 339, 2002 Rev. Ed.), read with Section 109 of the Penal Code (Cap. 224, 2008 Rev. Ed.).

As for the three companies, their charges generally read as follows: You…are charged that on or around … , in Singapore, did supply designated luxury items to a person in the Democratic People’s Republic of Korea (“DPRK”), to wit, you supplied perfumes/ cosmetics/ watches of metal clad with a precious metal/ musical instruments, amounting to a sum of …, to the Bugsae Shop/ MG Corporation/ New Hope Joint Venture Corporation in the DPRK, and you have thereby committed an offence under Regulation 5(a) read with Regulation 16(1) of the United Nations (Sanctions – Democratic People’s Republic of Korea) Regulations 2010, which offence is punishable under Section 5(1) of the United Nations Act (Cap. 339, 2002 Rev. Ed.).

The relevant offending period in this case is from December 2010 to November 2016 and the amendment to section 5(1) of the UN Act that came into effect on 14 March 2014 (vide Act 4 of 2014) enhanced the applicable maximum prescribed punishment. The table below shows the maximum prescribed punishment prior to 14 March 2014 and the enhanced prescribed punishment:

Prior to 14 March 2014	Individuals: Maximum fine: $100,000 Maximum imprisonment: 5 years Companies: Maximum fine: $100,000
After the amendment on 14 March 2014	Individuals: Maximum fine: $500,000 (increased 5-fold) Maximum imprisonment: 10 years (doubled) Companies: Maximum fine: $1 million (increased 10-fold)

In the table at paragraph 9 below, the charges that are marked with an asterisk (*) are those that were subject to the enhanced punishment – five charges for Chong Hock Yen, four charges for SCN Singapore Pte Ltd, 1 charge for Laurich International Pte Ltd and none for Sindok Trading Pte Ltd.

After considering the submissions from both the Defence and the Prosecution, including the Prosecution’s submission that much higher sentences should be imposed for the offences committed after the 14 March 2014 amendments, I decided to sentence the four accused as follows:

1	Chong Hock Yen	1 week’s imprisonment DAC 934399/2018, DAC-934401-2018, DAC-934402-2018, DAC-934425-2018*, DAC-934426-2018*, DAC-934427-2018* & DAC-934433-2018* 2 weeks’ imprisonment DAC-934423-2018* Sentences in DAC-934401-2018 and DAC-934423-2018* to run consecutively.
Total: 3 week’s imprisonment
2	SCN Singapore Pte Ltd	Fine of $15,000DSC-900745-2018 & DSC-900747-2018 Fine of $30,000 DSC-900765-2018* Fine of $20,000 DSC-900767-2018*, DSC-900768-2018* & DSC-900769-2018*
Total: Fine of $120,000, in default order of attachment to levy
3	Sindok Trading Pte Ltd (now known as BSS Global Pte Ltd)	Fine of $10,000 DSC-900739-2018
Total: Fine of $10,000, in default order of attachment to levy
4	Laurich International Pte Ltd (Now known as Gunnar Singapore Pte Ltd)	Fine of $10,000 DSC-900740-2018*
Total: Fine of $10,000, in default order of attachment to levy

The Prosecution being dissatisfied with the sentencing outcome for four accused has filed an appeal against the sentences that have been passed.

Background Brief Facts

The first accused company SCN Singapore Pte Ltd (hereinafter referred to as “SCN”) was incorporated in Singapore on 21 February 2002 and it is in the business of wholesale trade of commodities. The second accused company Sindok Trading Pte Ltd (hereinafter referred to as “Sindok”) was incorporated on 21 February 2001 and it is in the business of general wholesale trade. The third accused company Laurich International Pte Ltd (hereinafter referred to as “Laurich’) was incorporated on 9 November 1983 and it is in the business of industrial machinery wholesale trade. CHY as the director of all three companies had 95% shareholding and it was not in dispute that he was the directing mind and will of these companies during the material time.

Investigations showed these companies were established by CHY for the purpose of supplying goods to the DPRK and from December 2010 to November 2016, CHY had used all three companies to supply “designated luxury goods” to the following entities in the DPRK in...