Finian Tan in the US33.3 million nickel trading scam orchestrated by Ng Yu Zhi

Based on the reports, the scam tactic used on Finian Tan in the US33.3 million (S25.7 million + US$14.1 million) nickel trading scam orchestrated by Ng Yu Zhi appears to be a combination of deception and building trust, centered around a fabricated business opportunity. Here's a breakdown of the tactics employed:
 * Creating a False Narrative of Profitable Trading: Ng allegedly deceived Finian Tan into believing that his company, Envy Global Trading (EGT), was engaged in legitimate nickel trading. He claimed to be buying nickel at a discount from a supplier due to a term contract secured when prices were low and then selling it for a profit as demand increased. This narrative seemed plausible to Tan, who had prior experience in commodity trading.
 * Establishing Credibility and Trust: Ng cultivated trust with Tan over time. This was achieved through several means:
   * Investing in Vickers Venture Partners: Ng initially invested US$13 million into a company within the Vickers group before soliciting investments in his nickel business. This act of investing first, without any apparent self-interest in return at the time, likely built significant trust with Tan. As Tan stated, "He invested in us with no requirement. He never solicited anything, he never asked me to invest. I treated him as an investor."
   * Demonstrating Knowledge and Appearing Successful: Ng reportedly spoke with confidence and used industry jargon related to nickel trading, making him appear knowledgeable and successful. Tan noted that "Ng knew all the jargon and knew what could possibly make this type of money."
   * Social Interactions: Ng met Tan for meals with their families, creating a personal connection beyond just business.
   * Creating an "Act": Tan described Ng putting on an "amazing act," which likely involved consistently checking nickel prices on his phone and even fabricating stories related to the nickel shipments (like a hurricane affecting loading).
 * Leveraging Market Conditions: Ng reportedly chose nickel, a metal whose price had indeed risen after a period of low prices, making his claims of profitable trading seem more believable.
 * Promised High Returns: Tan was promised returns of around 15-17% on his investments, which, while high, might have seemed achievable in a booming commodity market to someone with trading experience.
In essence, Ng did not directly solicit investments in the nickel scheme initially. Instead, he first established himself as a credible investor in Tan's venture capital firm, building trust over time. Only later did he present the seemingly lucrative nickel trading opportunity, leveraging the prior trust and a plausible narrative about his business. This approach likely lowered Tan's guard and made him more susceptible to the fraudulent scheme. The prosecution contends that, in reality, no actual nickel trading occurred, and the scheme was likely a Ponzi-like structure where early investors were paid with money from later investors.

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