Singaporean car leasing firm owner arrested amid expanded probe into Cambodian tycoon Chen Zhi’s alleged scam empire

Tan, 49, is the sole shareholder of SRS Auto, a company on Singapore’s Kung Chong Road that engages in private car rentals and motor financing. Police raided the firm and arrested Tan last week, as reported by Bloomberg.

"The police are investigating Chen Zhi and the companies associated with him," the Singapore Police Force said on Sunday in a statement addressing questions about SRS raid.

"One person has been arrested for his suspected involvement in money laundering offences so far. We are not able to comment further as the investigation is ongoing."

Chinese-born Chen was charged in absentia in the U.S. on Oct.14 for allegedly orchestrating a massive cryptocurrency scam involving forced labor camps in Cambodia.

Court filings allege that Prince Holding Group established at least 10 compounds in Cambodia where workers, many of them detained migrants, were forced to contact thousands of victims online, gain their trust and convince them to invest in cryptocurrency with promises of high returns. The U.S. Treasury Department has sanctioned 146 individuals and entities connected to the conglomerate.

In 2017, SRS obtained an "uncommitted revolving loan facility" from Skyline Investment Management, a firm established by Chen. Skyline was sanctioned last month by the U.S. Treasury, which alleged that Chen’s control of the firm made it part of his criminal network.

The loan agreement also revealed that SRS maintained accounts with lender United Overseas Bank and Malayan Banking’s branch in Singapore.

Tan reportedly had a close relationship with Chen and was listed as a director of TGC Cambodia, a Phnom Penh-based "pawnshop" chaired by another individual sanctioned alongside Chen last month. TGC was allegedly used to funnel funds from Chen’s interests in Cambodia to companies in the car trade, including those in Singapore, according to The Straits Times.

Tan is also the founder of women’s apparel company bYSI and holds directorships in 16 Singapore-registered companies, all listed at the same building as SRS on Kung Chong Road. He has previously faced controversies over his business activities and was deemed unfit to serve as a director of any Singapore-listed company for three years from January 2024.

Chen remains at large, and both he and Prince Group have repeatedly denied any wrongdoing. If convicted, he could face up to 40 years in prison.

Earlier this month, Singapore police seized more than S$150 million in assets linked to the group, including six properties, bank and securities accounts and cash connected to Chen and his network in relation to money laundering and forgery offenses, Reuters reported.

Skyline and other companies linked to Chen are also seeking access to funds in accounts with Maybank and Revolut that were frozen by Singapore authorities. They claim the freeze orders have caused "considerable hardship" for employees and their families.