The Business Times in January 2008 reported that the fraud investigation arm of major audit firm KPMG, KPMG Forensics, had found creative accounting in listed company JEL Corporation's accounts for Financial Year 2006 and the first half of Financial Year 2007. The creative accounting resulted in overstatements of profits of $11.84 million. Among some of the tricks used were the creation of fake invoices and accounting documents. These were designed to show transactions with other companies when such transactions were fake.
For details, please refer to http://137.132.179.30/Portals/0/images/CGFRC/docs/CG_News_Feb_2008.pdf.
As of today, 28 May 2009, latest news is that several persons have been charged in court in relation to the above accounting. Ng Soon Heng, the financial controller and JEL's ex-CEO and chairman Eric Tan Boon Yong, ex-deputy CEO and CFO Wee Teck Han and ex-COO Eric Leow Hock Leong were those charged. It is unclear what offences they were charged with but likely offences would be under the Companies Act, and since JEL is also listed, there are also possible offences under the Securitites and Futures Act.
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