After Losing Money in Forex Trading, She Embezzles Over RM10 Million from Her Company

A case of large scale internal fraud has shaken a Singapore based engineering company after a trusted manager diverted nearly SGD 4.8 million (approximately RM14.63 million) in company funds into foreign exchange trading, only for the money to be completely lost. The scandal only came to light when the company director discovered that one of the firms bank accounts had been drained to just SGD 750 (approximately RM2,285.48), triggering an urgent internal review and police report.

The accused, Chinese national Qin Xiaowen, 40, was sentenced to 8 years and 8 months in prison after pleading guilty to three charges out of a total of 12, including criminal breach of trust, cheating, and forgery. At the time of the offences, she held a senior managerial role at Harmonious Coretrades, a scaffolding services company, giving her extensive access to corporate banking systems and financial records.

Discovery Triggered by Suspicious Access to Office Records

Court proceedings revealed that the fraud unraveled on 16 March 2023, when the company director noticed Qin leaving his office shortly before he discovered sensitive financial documents left open on his desk. The director immediately grew suspicious and checked the companys bank accounts.

What he found was alarming. One account had been almost completely emptied, leaving only SGD 750 (RM2,285.48). Further checks revealed unauthorized transfers across multiple accounts, prompting immediate contact with the bank and a police report.

The discovery exposed what authorities later described as a prolonged and deliberate misappropriation scheme carried out over nearly a year.

Forex Losses and Mounting Personal Debt Trigger Fraud

Investigations revealed that Qin had been actively trading foreign exchange online since 2019. By 2021, she had already accumulated personal debts of at least SGD 150,000 (approximately RM457,095.75). Under increasing financial pressure and unable to recover losses, she began using company funds to sustain her trading activity.

Between 18 April 2022 and 16 March 2023, Qin systematically transferred money from three company bank accounts into her personal accounts. The funds were immediately channelled into forex trading, where they were fully lost.

Despite repeated losses, she continued the scheme, ultimately misappropriating approximately SGD 4,791,271 (approximately RM14.60 million). Prior to her arrest, she had only managed to return about SGD 330,360 (approximately RM1,005,720.35), leaving the vast majority of the funds unrecovered.

Exploiting Full Financial Control and Employee Data

Qins position as manager gave her full responsibility over payroll, supplier payments, and client collections. Crucially, the company director, who had limited English proficiency, had entrusted her with control over all three corporate bank accounts.

She also exploited internal administrative privileges, including access to former employees‘ banking information used for salary payments. Investigators found that she logged into a former colleague’s bank account without consent and redirected company funds through it to conceal the money trail.

Of the total misappropriated amount, approximately SGD 1,508,000 (RM4.60 million) was routed through accounts belonging to a former employee.

Escalating Deception and Forged Financial Records

To delay detection, Qin engaged in a sustained effort to falsify financial documentation. Between May 2022 and February 2023, she produced 10 sets of forged bank statements, deliberately removing evidence of unauthorized transfers and altering account balances to disguise the losses.

In a further attempt to cover the shortfall, she impersonated the company directors signature on 14 March 2023 to issue a cheque worth SGD 40,000 (approximately RM121,892), shifting funds between company accounts in an attempt to mask the missing money.

However, a mistake in the cheque date caused it to bounce. Qin then forged another cheque, which temporarily concealed the financial gap before the irregularities were ultimately exposed days later.

Rapid Unraveling and Immediate Investigation

Once the discrepancies were discovered, the company escalated the matter without delay, contacting financial institutions and law enforcement authorities. The speed of the response reflected the severity of the financial exposure, with investigators quickly identifying a pattern of unauthorized transfers spanning nearly a year.

Authorities confirmed that the scale of the losses placed the company under severe financial strain, with large portions of its operational funds diverted and unrecovered.

Court Condemns Breach of Trust and Deliberate Abuse of Position

During sentencing, the court emphasized that Qins actions were premeditated and sustained over an extended period. The judge noted that she had deliberately exploited a high trust position, using her authority over company finances to facilitate repeated theft.

The court further highlighted the seriousness of the breach, stating that the accused had effectively gained unrestricted access to corporate funds and internal systems, enabling the fraud to continue undetected for months.

In mitigation, Qin admitted responsibility and expressed regret, but the court ruled that the scale and duration of the offences warranted a substantial custodial sentence.