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Keywords: Fake Work Passes, Legal Risks and Penalties, Company Registration and Compliance Management

A 54-year-old Singaporean man was sentenced to 40 weeks in jail, fined S$3,000, and ordered to repay S$105,000 in criminal proceeds for conspiring to set up 13 shell companies and helping 60 foreigners obtain work passes through fake employment. Some of the foreigners involved in the fraudulent visa applications were also convicted, while others received warnings and were deported.

Case Overview

According to a statement released by the Ministry of Manpower (MOM) on October 15, the accused, Leong Kee Tong, faced 66 charges under the Employment of Foreign Manpower Act. He pleaded guilty to 22 counts, with the remaining charges taken into consideration during sentencing.

Investigations revealed that between 2019 and 2020, Leong conspired with four others — Tan Tai Kiat, Sim Jian Wen, Leong Fook Yuen, and Cheng Zhi Hao — to set up 12 shell companies. These companies were used to assist foreign individuals in obtaining work passes through fictitious employment arrangements, allowing them to legally remain in Singapore under false pretenses.

 

 

The accused was responsible for administrative matters and used the Singpass accounts of nominee directors to register shell companies and submit work pass applications to the Ministry of Manpower (MOM). Once the foreign nationals arrived in Singapore, they were free to move around and never worked for any of the shell companies.

To evade detection, the accused forged company documents and arranged fake meetings at the registered business addresses to create the illusion of legitimate business operations. He also helped collect monthly fees ranging from S$2,000 to S$5,000 from the foreigners in exchange for maintaining their work passes.

In 2021, he further conspired with a 63-year-old man, Cheong Tian Fook, to set up another shell company named TL Wood, using the same fraudulent methods to falsely declare six foreigners as employees.

These so-called “companies” had no real business activities or employees, yet a total of 66 foreigners successfully obtained work passes through the scheme.

 

Hiring “Ghost Employees” to Inflate Foreign Worker Quotas

 

 

To meet the requirements for work pass applications, the accused recruited and employed local “phantom workers” to artificially inflate the number of local staff and thereby increase the quota for foreign employees.

He even paid foreign worker levies and contributions to the Central Provident Fund (CPF) for these fictitious employees to maintain a façade of legality. The entire scheme netted him approximately S$105,000 in profits. Sim Jian Wen, Leong Fook Yuen, and Cheng Zhi Hao were alleged to have acted as nominee directors, receiving payments for their roles.

 

A total of 66 foreigners were involved in the case

 

 

The case involved a total of 66 foreigners, of whom:

• 15 were convicted and sentenced;
• 1 is still awaiting trial;
• 16 had left Singapore before the investigation began;
• The remaining 34 were warned by authorities and subsequently deported.

Under the Employment of Foreign Manpower Act, anyone who obtains work passes through businesses that do not exist, are non-operational, or do not require foreign employees may face, for each charge, a fine of up to S$6,000, imprisonment of up to two years, or both. If charged with more than six offences, the accused may even be subjected to caning.

 

Exercise Caution When Applying for Work Passes

In recent years, cases involving “shell companies” and “fictitious employment” have been on the rise. Foreigners intending to work in Singapore, as well as companies assisting with applications, should be especially cautious of services offering “agency handling” or “nominee company” arrangements. Involvement in false declarations can lead not only to the revocation of work passes but also to violations of criminal and immigration laws.

 

Key Points to Verify When Applying for a Work Pass

Company Credentials and Authenticity

• Ensure the company actually exists and its registration information is valid.
• Confirm the company is legally allowed to employ foreigners.
• Check that the company’s business scope matches the position being applied for.

Job Requirements and Applicant Qualifications

• Verify that the job responsibilities are genuine and aligned with the company’s needs.
• Ensure the applicant’s education, work experience, and skills meet the requirements.
• Avoid positions that are fictitious or nominee roles.

Transparent and Compliant Application Process

• Use official and legitimate channels, with a clear and transparent process.
• All documents and declarations must be authentic and reliable.
• Avoid applying through “grey channels” or shell companies.

Fees and Contract Considerations

• Verify the reasonableness and legality of any fees; avoid excessive “service charges” or hidden costs.
• Before signing an employment contract, ensure all terms are genuine and legal.
• Keep all written documents and receipts for future reference or verification.

Risk Awareness

• False declarations or applications through illegal companies may result in work pass revocation, deportation, or criminal liability.
• Always choose legitimate, qualified agencies to ensure the process is fully compliant and secure.

 

SIG GLOBAL：Your Comprehensive Compliance Partner 

 

 

As a professional accounting and business consulting firm based in Singapore, SIG International has many years of experience in company registration, work pass applications, and compliance advisory services, backed by a comprehensive corporate compliance management system and extensive practical expertise.

We provide comprehensive services for both businesses and individuals, including:

• Legal and compliant work pass applications and advisory services;
• Company registration and corporate secretarial services;
• Payroll, tax filing, and Central Provident Fund (CPF) compliance management;
• Entrepreneurial immigration planning, including the Global Investor Programme (GIP) and family office applications.

 

SIG Global Reminds You

The “grey-market dealings” behind a work pass cannot escape legal consequences. When applying for a work pass, choosing a qualified professional firm is the best protection for both companies and individuals.

If you have needs related to company registration or work pass applications in Singapore, contact SIG Global to let our professional team provide you with comprehensive, fully compliant services.