by Ganesh Sahathevan
Victims of the Cellos financial disaster in Singapore may have recourse against Singapore diretor Constance Peck, and others named in a decision of the Federal Court Australia
In CellOS Software Ltd v Huber, Federal Court of Australia, 20 December 2018, the Court held:
1046. In summary and based on the factual analysis set out above, CellOS has not made out its case against the Pecks and Mr (Melvin) Tan concerning the requisite knowledge necessary to establishing accessorial liability.[621]
1047. In my view, the Pecks and Mr Tan lacked actual knowledge of or relevant to the following matters. Moreover, I am not prepared to infer actual knowledge of such matters from a lesser constructive knowledge foundation or reckless indifference.
Australian courts have adopted a criminal standard of proof , that is proof beyond a reasonable doubt, even in civil cases such as Cellos where the practice has been proof on a balance of probabilities. Singapore's courts are likely to have stayed with the latter, and hence it may still be possible for Cellos investors to pursue Peck and Tan, as well as former pastor of the City Mission Kallang Church Thio Gim Hock for the loss they suffered.
To Be Read WIth
Sunday, February 12, 2023
Promises of rewards on earth and in heaven by their pastor, former OUE CEO Thio Gim Hock may have led members into the Cellos financial disaster- Church members may be able to recover losses from all involved, including pastor and property tycoon Thio's estate
b y Ganesh Sahathevan
In the continuing Cellos Software Ltd saga much is being revealed in ongoing Federal Court proceedings in Australia. Among the revelations is the excerpt below from the judgement of Mr Justice Beach which includes correspondence from former Cellos director Constance Peck (at paragraph 309):
- The “profit”went back to CellOS, to Christian work, to charity and to the same of the people who bought at USD5.00.
Melvin (Tan) gave away all and more than the money that he made from these transactions - to Anthony Cooper and Andrea’s charities, to Thio Gim Hock’s missionary outreaches, and to many needy people and church needs - I can absolutely vouch for that. He has kept nothing of the profit - and the Lord has just been blessing him immeasurably. Let him tell you his stories of the goodness of God to him. The new BMW that Melvin now drives are indeed a gift from a grateful investor in stocks that have already made them a lot of money..
The attribution of earthly wealth to heavenly elements is common in the protestant churches. The term prosperity theology and prosperity gospel have been used to describe the phenomenon.
Prosperity theology has worked well for the pastors or leaders of the churches that promote it. In the case of Cellos Thio received a share of the profits from the sale of discounted shares and was also paid what appears to be a commission for introducing investors. It is believed that he had led his congregation in praying for the success of the Cellos venture, which included a NASDAQ IPO. It is also understood that the prayers were part of the share sale promotion.
This promise of earthly and heavenly rewards can easily confuse and mislead investors. Thio, who has been described as a property tycoon, was after all a pastor to his parishioners and therefore in a position of trust.
The information that is now available publicly in the Australian judgements provide City Mission Kallang members who have lost money of their Cellos investments the means, or at least part of the means, to pursue Thio and others who led them into the investment.
Thio has passed away, but they can probably pursue the late tycoon's estate.
TO BE READ WITH
Friday, February 10, 2023