They had acted dishonestly and were involved in conspiracies to misuse church funds, says judge
By Danson Cheong, The Straits Times, 22 Oct 2015
The long-running legal battle over the misuse of City Harvest Church (CHC) funds on Wednesday (Oct 21) resulted in all six accused being convicted of multimillion-dollar fraud.
Some of them, including the church's charismatic 51-year-old founder Kong Hee, were found guilty of secretly funnelling $24 million of church funds into sham investments to bankroll the controversial pop music career of his wife Ho Yeow Sun. And some were guilty of devising plans to use a further $26 million to cover these tracks.
In a courtroom packed with close to 70 church supporters, Judge See Kee Oon ruled that the six had "acted dishonestly" and were involved in conspiracies to misuse church building funds for the Crossover Project - a CHC mission to evangelise through Ms Ho's music. They also defrauded auditors by falsifying accounts.
"Each of them participated and functioned in their own way as crucial cogs in the machinery," said Judge See, who singled out Kong as the spiritual leader the other defendants had trusted.
City Harvest trial: All six senior church members have been found guilty of all the charges. The full story here http://str.sg/ZLYp
Posted by The Straits Times on Tuesday, October 20, 2015
They are: former CHC fund manager Chew Eng Han, 55; former CHC finance managers Serina Wee, 38, and Sharon Tan, 40; deputy senior pastor Tan Ye Peng, 42; and former CHC finance committee member John Lam, 47.
The mammoth trial has captured public attention as tales of extravagant spending by Kong and his wife emerged along with details of an intricate financial fraud.
After 140 days of trial proceedings which began in May 2013, all six arrived in court to hear the verdict in good spirits with their families in tow. Minutes before the hearing began, they were chatting and joking with each other in the dock.
Chew told The Straits Times he was at peace and unafraid, while Tan Ye Peng flashed a thumbs up sign at the defence lawyers.
Some of the church's supporters had queued overnight for a coveted pass into the courtroom, and about 60 people who did not manage to get a ticket were outside, eyes glued to their phones for updates.
But moments after Judge See started delivering his verdict, the mood darkened. Smiles faded and the six stared glumly ahead.
The judge addressed them in sequence, pronouncing the six guilty of all charges - which involved varying counts of criminal breach of trust and falsifying accounts.
Most of them hung their heads low in the dock. Sharon Tan and Wee were seen wiping away tears.
After the hearing, Senior Counsels Edwin Tong, Andre Maniam and N. Sreenivasan - lawyers for Kong, Wee and Tan Ye Peng, respectively - said it was still "too early" to say whether or not their clients would appeal.
Lawyers on both sides are due back in court on Nov 20 to deliver oral submissions on sentencing.
A maximum cumulative sentence of 20 years can be imposed on the accused, in addition to a fine.
In a statement released by the church, Kong's wife Ho, who is also CHC's executive director, said: "We have placed our faith in God and trust that whatever the outcome, He will use it for our good."
Some of those found guilty stuck to their guns. "It's been a very long trial, and someone prudent would have been prepared for conviction. But, of course, we were always believing in our acquittal," said Lam.
Chew said: "I still believe in justice, that the innocent will be set free. And I believe I am innocent."
#CHCTRIAL VERDICT: All 6 #CityHarvest accused are guilty of all charges, said Judge See."I am satisfied that six accused persons are guilty of all the charges against them."LIVE UPDATES: bit.ly/1GotcZX
Posted by Channel NewsAsia Singapore on Tuesday, October 20, 2015
Presiding Judge of the State Courts, See Kee Oon, said the evidence presented overwhelmingly showed they had all acted dishonestly
Posted by The New Paper on Tuesday, October 20, 2015
Sun Ho may not have been among the City Harvest leaders charged, but the case centred around her. See what the judge had to say about her music career here... http://bit.ly/1MTbmzw
Posted by The New Paper on Wednesday, October 21, 2015
City Harvest trial: Hiding unlawful conduct, siphoning funds, fraud...
Judge points to weight of evidence that led him to find all six defendants guilty of all charges against them
By Danson Cheong, The Straits Times, 22 Oct 2015
They had engaged in covert operations and concealed their unlawful conduct. They had knowingly siphoned millions from the church to fund the expensive music career of the pastor's wife.
And they had defrauded auditors with falsified accounts and conspired with the intention to cause wrongful loss to City Harvest Church (CHC).
The list of misdeeds at the end of Judge See Kee Oon's 15-page oral judgment read like a damning coda to the City Harvest trial.
In the judgment, he wrote that the weight of the evidence had led him to find all six City Harvest co- accused guilty of all the charges made out against them.
The six - including senior pastor Kong Hee, 51 - had stood trial on varying charges of criminal breach of trust and falsifying accounts.
For each count of criminal breach of trust, the six could face up to 10 years' jail and a fine. The falsification of accounts carries a jail term of up to 10 years and a fine.
The maximum jail sentence that District Court judges can impose is 10 years per charge, or a cumulative sentence of up to 20 years.
For all those who haven't heard the news: The six CHC members were found guilty of all charges today. Here's the full transcript of the court verdict.
Posted by The Middle Ground on Wednesday, October 21, 2015
The other accused are deputy senior pastor Tan Ye Peng, 42; former CHC finance managers Serina Wee, 38, and Sharon Tan, 40; former CHC finance committee member John Lam, 47; and former CHC fund manager Chew Eng Han, 55.
Bail of $1 million was extended to Kong, Tan Ye Peng, Chew and Lam. It was set at $750,000 for Sharon Tan and Wee. Wee was previously out on bail for $500,000. All six are barred from travelling overseas.
Judge See noted that although there was no evidence of any wrongful gain by the accused, this did not factor in his decision as the prosecution's case was "premised on wrongful loss caused to CHC through the misappropriation of CHC's funds".
Nor did it matter ultimately if the accused had "trusted completely the leadership of Kong Hee" and acted in accordance with his instructions.
"But no matter how pure the motive or how ingrained the trust in one's leaders... these do not exonerate an accused person from criminal liability if all the elements of an offence are made out," he wrote.
The six had misused some $50 million in church building funds earmarked for building-related expenses or investments.
First, $24 million was invested in bonds from music production company Xtron and glass-maker Firna that were in fact used to fund the Crossover Project - a mission to evangelise through Ms Ho Yeow Sun's music.
Later, $26 million was used to cover up the initial misdeed.
Judge See noted that Xtron and Firna bonds were not genuine investments but were "wrong use" of the building fund.
Furthermore, he said, the accused went ahead with the $13 million Xtron bonds, even though album sales projections indicated that only about 200,000 copies would be sold, making far less money than that needed to redeem the bonds on time. The defendants then devised plans to funnel funds to Xtron "under the guise of legitimate transactions" to help it solve its cashflow difficulties.
They also hid the fact from auditors that the company was controlled by Kong and Tan Ye Peng.
"I do not accept that they genuinely believed that the sale of Sun Ho's music albums would generate sufficient profit for CHC to enjoy financial return," wrote Judge See, noting that Ms Ho's "perceived success" was inflated as album sales were boosted by the church.
Similarly, the "primary purpose" of the $11 million in Firna bonds was to channel money from the church to the Crossover Project.
Judge See said he did not buy the defence's argument that money spent on Crossover had a dual purpose of being an investment and serving a "missions" purpose.
"These are creative labels tacked on in an attempt to strain and stretch the plain meaning of the word 'investment'," he said.
He said the "round-tripping" transactions devised were merely to give the appearance the bonds were redeemed. "The substance of it was that CHC was channelling money through various conduits in order to pay itself," he wrote.
Judge See noted the paper trail left by the accused did not indicate innocence, as the defence claimed, but was "more suggestive of a mindset of presumptuousness or boldness".
"The weight of the evidence, however, points to a finding that they knew they were acting dishonestly and I am unable to conclude otherwise," he wrote.
"They (accused) all have intent to defraud," the judge said. #CHCtrial
Posted by Yahoo Singapore on Tuesday, October 20, 2015
City Harvest trial: Popular leader left silent by verdict
By Ng Huiwen, The Straits Times, 22 Oct 2015
He is known among City Harvest churchgoers for his charisma, and had preached passionately to a 30,000-strong congregation at the peak of the church's popularity in 2009.
But City Harvest Church (CHC) founder and senior pastor Kong Hee was a man of few words after the verdict of a long-running criminal trial was delivered yesterday. He was found guilty of three charges of criminal breach of trust.
Sitting in the dock next to co- accused John Lam and Sharon Tan, the 51-year-old hung his head low and wore a stoic expression as Presiding Judge See Kee Oon addressed a packed courtroom.
When asked about his feelings as he left the State Courts building later, he braved a smile and would only say: "No, not now."
He was accompanied by his lawyer Edwin Tong and his wife, Ms Ho Yeow Sun, who also kept silent.
Since its formation in 1989, CHC has been through its fair share of ups and downs.
Fronted by Kong and Ms Ho, the church began with just 20 followers in a single-storey terrace house at 41A Amber Road. That year, Kong had just graduated from the National University of Singapore and had "barely a dollar to his name", as he puts it on CHC's website.
Its focus on Bible studies soon attracted some 200 members in the first year. In 1995, after Kong completed his theology doctorate in the United States, the number of members swelled to 1,000.
The church continued to grow exponentially and, by 2009, more than 30,000 youthful and energetic followers would fill its chic $48 million Jurong West premises for services every week.
Over the years, however, Kong had to brush off criticism about the church's supposedly aggressive evangelism and also his sermons, which some in the Christian community felt were focused on financial blessings.
In an interview with The Straits Times in 2008, he maintained that the church was "merely seeking to present Christianity in a way that is relevant to the people of the 21st century".
When the 140-day trial began, some church members were quick to rally around their embattled leader, while others expressed concern about the church's reputation.
Today, CHC's congregation stands at about 17,000.
How did City Harvest Church (Official)-linked media cover the #CHCVerdict? Here's our verdict. #CHCtrial
Posted by Mothership.sg on Tuesday, October 20, 2015
Man who alleged funds misuse 'vindicated'
By Ng Huiwen, The Straits Times, 22 Oct 2015
The businessman who charged in 2003 that City Harvest Church (CHC) was paying for Ms Ho Yeow Sun's music career is now vindicated, said his daughter yesterday.
Back then, businessman Roland Poon alleged that church funds were being misused to finance the music career of Ms Ho, the wife of CHC founder Kong Hee.
Mr Poon, 66, eventually retracted his statement and apologised, but his comments would set off a chain of events leading to the criminal charges, according to the prosecution.
Yesterday, the six accused in the long-running CHC trial were found guilty of all charges.
Mr Poon's daughter, Ms Sharon Poon, told The Straits Times after the verdict: "I feel happy for my father that he is now vindicated, and that after 10 years, we now know that what he did was right."
She said Mr Poon had been concerned about the outcome of the case and was "waiting for this day to happen", adding: "Now, he can sleep in peace."
"He was brave enough to come out about it. Now, I hope that they can apologise to him, if they still have the heart," she said.
Mr Poon declined to comment when contacted yesterday.
Businessman Roland Poon spoke out in 2003, saying that City Harvest Church funds were being misused to finance the music career of Ms Ho, the wife of CHC founder Kong Hee. http://str.sg/ZLWn
Posted by The Straits Times on Wednesday, October 21, 2015
During the trial, much of the spotlight was cast on the Crossover Project - a plan started in 2002 to evangelise to the "unchurched" and woo non-converts, in particular youth - through Ms Ho's secular pop music.
The project started on a high, and Ms Ho later went on to produce five albums and perform in 80 concerts as part of a worldwide outreach tour between October 2003 and May 2004 that drew some 140,000 supporters.
However, controversy surrounding the project had begun to brew since January 2003, when Mr Poon flagged the possible misuse of funds.
The project's costs increased dramatically when the decision was made to break into the United States market. Songwriter and producer Wyclef Jean was hired in 2006 to help Ms Ho.
Criticism surged again in 2007, after the release of Ms Ho's English single China Wine. In the risque music video, marketed for its "Asian-Reggae" fusion sounds, she is seen dancing in a skimpy outfit.
"If Sun made it in the US, it would open a big door for our missions," Kong had said during the trial.
However, the court also heard that church members were supposedly encouraged to divert their tithes and donations to music production company Xtron to fund the mounting expenses of Ms Ho's US album.
Kong was also accused by former CHC fund manager Chew Eng Han, one of the defendants, of spending church money to buy Ms Ho's earlier Mandarin albums, thereby inflating sales figures.
"We are disappointed by the outcome," says Sun Ho on the #CHCtrial verdict. "Nonetheless, I know that Pastor Kong and...
Posted by Channel NewsAsia Singapore on Tuesday, October 20, 2015
"We are disappointed by the outcome." #CHCtrial
Posted by Yahoo Singapore on Tuesday, October 20, 2015
City Harvest trial: Supporters' mood turns grim on hearing news
By Jasmine Osada, The Straits Times, 22 Oct 2015
On Tuesday night, the eve of the verdict, the City Harvest Church held a 12-hour fasting session and a prayer meeting for Kong Hee and others accused of misappropriating and misusing church funds.
One person who attended the event at the church's Jurong West building told The Straits Times that more than 2,300 "prayed for victory". But as news that all six accused had been found guilty reached the 60 or so supporters who had gathered outside Court 1 yesterday, the mood turned grim - with plenty of frowns and upset faces.
Many seemed to be using messaging apps to communicate with people inside the courtroom. Supporters had started queueing outside the State Courts as early as 10pm on Tuesday for one of 55 passes available to attend the hearing.
Those who came together with family or friends started talking to each other in hushed tones.
While most declined to speak to the media, those who did expressed their support for the church and its convicted leaders.
A 22-year-old, who declined to be named, told The Straits Times before the verdict that the church will remain strong regardless of the outcome. "I'm very sure I can trust in my church and its integrity. The pastors are genuine people and they are sincere," she said. "I believe that the church is doing things properly."
Business owner John Tay, 25, also said after the guilty verdicts that his belief in the church remains unaffected. "I'm still feeling calm, and my support for the church and its leaders will never waver."
At about 11.20am yesterday, an hour after court was adjourned, the church released a statement by its co-founder and executive director Ho Yeow Sun, thanking members.
"The judge has rendered his decision and, naturally, we are disappointed by the outcome. Nonetheless, I know that Pastor Kong and the rest are studying the judgment intently and will take legal advice from their respective lawyers in the days to come," wrote Ms Ho, whose pop career was a centrepiece of the case. The misappropriated money was used to fund her music projects.
"Thank you for your unwavering faithfulness in loving God and loving one another. More than ever before, let's have a unity that is unbreakable. Pastor Kong and I are humbled by the tremendous outpouring of love and support shown to us during this time," she went on.
Several people who abandoned City Harvest said the guilty verdicts vindicated their decision to leave the church. One, who declined to be named, said that she quit in 2013 because she felt "let down" by its leaders. "I believed that the six were guilty, and now that the verdict is out, I am relieved knowing that I did not make the wrong judgment in leaving," added the undergraduate.
When The Straits Times visited City Harvest's Jurong West church yesterday, the building was "closed for maintenance" according to the staff there. It is slated to reopen during the weekend.
Additional reporting by Lester Hio
Dear Church Family,The judge has rendered his decision and, naturally, we are disappointed by the outcome....
Posted by Sun Ho (Official) on Tuesday, October 20, 2015
Dear Church Family,The judge has rendered his decision and, naturally, we are disappointed by the outcome....
Posted by City Harvest Church (Official) on Tuesday, October 20, 2015
'Disappointed, but my faith is not shaken': City Harvest members react to verdict
“We are all human and maybe some things were not done right but ultimately we still love them": City Harvest members at the State Courts when 6 of their leaders were found guilty of criminal breach of trust and falsification of accounts talk to Channel NewsAsia.
By Vanessa Paige Chelvan and Justin Ong, Channel NewsAsia, 21 Oct 2015
City Harvest Church (CHC) members lamented the guilty verdict handed down on Wednesday (Oct 21) by Judge See Kee Oon to six of their leaders accused of misappropriating S$50 million of church funds and falsifying the church's accounts.
Those Channel NewsAsia spoke to said they would continue to rally behind their church despite the conviction of the six accused - CHC founder and senior pastor Kong Hee, deputy senior pastor Tan Ye Peng, former chairman of CHC’s investment committee John Lam, former CHC investment committee member Chew Eng Han and former finance managers Serina Wee and Sharon Tan.
“I am quite disappointed that not a single charge was dropped. Everyone is of course very sad,” said Mr John Tay, 25, a CHC member of 11 years.
Mr Tay waited outside the courtroom as the verdict was delivered on Wednesday, not having arrived early enough to be among 55 members of the public allowed to enter.
Also waiting outside the courtroom was fellow church member Justine Lee, 24. “The first thing we felt was definitely sadness. But I think the sentencing is still not out yet so I hope whatever the sentence is, it’s fair," said Mr Lee.
“I’m disappointed, but mostly I’m just believing that God will bring us through this,” said Ms Jazreel Wong, 22.
"We are all human beings and maybe some things were not done right but ultimately we still love them," said a City Harvest Church (Official) member following the verdict passed on 6 of the church's leaders.
Posted by Channel NewsAsia Singapore on Tuesday, October 20, 2015
"WE BELIEVE IN THE CROSSOVER PROJECT"
Asked if their trust in the church had been “criminally breached”, as levelled by Judge See Kee Oon in his oral judgment, the trio disagreed.
“I understand where the judge is coming from, but the Crossover Project is something that we all deeply believe in and care for,” said Mr Tay.
The Crossover Project was hatched by CHC as a way to propel Kong's wife, Ho Yeow Sun - better known as Sun Ho - into the public limelight by fashioning her into a pop star.
Added Mr Tay: “Of course the entire process could have been done better, but I'm still supportive because I know as much as the funds were misused, they did not go towards any individual gain but was for a church purpose.”
“My faith in the church is not shaken. In fact, in the past five years it has strengthened and grown deeper,” he added.
Mr Lee, a CHC member of 10 years, said he believed the case was a matter of “good intentions”, but carried out via “methods not directly abiding with the law, in the judge’s opinion”.
“I wouldn't say they did the wrong thing. The general public might not understand the Crossover Project but to me it was important in our church mission and led to hundreds of thousands of people joining,” he said.
Added Ms Wong: “We are all human and maybe some things were not done right but ultimately we still love them.”
“As we give, whether or not it’s to the building fund, offerings or tithes, ultimately we are giving unto God and not to the leaders. We are just trying to build God’s house so I feel that the building fund is more a material thing while the Crossover Project is more of a spiritual thing,” she added.
TIME TO MOVE ON?
Mr Tay said that in the past five years, CHC has taken steps to improve its internal processes, “in terms of accountability from church management to church members, and corporate governance”.
And Ms Wong noted that CHC's leaders have called on the church to "move on" to a new chapter.
“We have this vision called CHC 2.0, where Sun (Ho) will be leading us mostly,” said the church member of eight years. “They have been getting Sun more involved. She has been leading praise and worship, and the rest of the pastors have also stepped up.”
Ms Ho also referred to "CHC 2.0" in a statement posted on the church’s Facebook page shortly after the verdict, pointing to a new management and new church board that has been running the church’s operations since 2012.
The interesting things we find in the comments, though. #CHCVerdict #CHCTrial
Posted by Mothership.sg on Tuesday, October 20, 2015
REMOVAL PROCEEDINGS TO RESUME
In response to the verdict, the Office of the Commissioner of Charities (COC) said on Wednesday that they would resume removal proceeding for the six church leaders convicted after they are sentenced. It had agreed to defer the removal proceedings in Aug 2013.
The commissioner's office will seek representations from them on why they should not be removed. "The COC will consider fully and fairly all representations received before making a decision," it said in a statement late Wednesday.
"The six individuals who were convicted of offences involving dishonesty or deception are automatically disqualified from being a governing board member, key officer or trustee of CHC," the COC added.
It said the removal proceedings do not remove any of these individuals from their religious duties. "Pastor Kong may continue with his religious duties, as this is separate from the holding of any governance or management positions in CHC," the COC stated.
The church can also continue its normal services, collect offerings during its weekly services, and conduct fund-raising appeals subject to compliance with existing regulations, the COC said.
City Harvest trial: Church founder Kong Hee and five others were convicted of all charges levelled against them on...
Posted by The Straits Times on Wednesday, October 21, 2015
City Harvest Church (Official) trial: All 6 found guilty on all charges."The evidence points overwhelmingly to a...
Posted by Channel NewsAsia Singapore on Tuesday, October 20, 2015
City Harvest trial: Saga highlights crucial role of whistle-blower
By Abdul Hafiz, Assistant News Editor, The Straits Times, 22 Oct 2015
If there was one clear message yesterday from the guilty verdicts for all six accused in the City Harvest Church trial, it is that the courts here will not tolerate any hanky-panky when it comes to charity money.
There is no excuse, even if they were acting on faith in a magnetic spiritual leader - in this case Kong Hee, who went from a computer science graduate to the founder of a wealthy mega-church with more than 30,000 members at its peak.
But what should also not be forgotten is that it was a decision by a whistle-blower which got the ball rolling. In 2003, church member Roland Poon went public about the growing disquiet over how the church was spending donated money on pushing the pop music career of Kong's wife Ho Yeow Sun.
The 2005 National Kidney Foundation (NKF) scandal also had its roots in a whistle-blower - a contractor in his 50s, who donated to the cause and wanted to be known only as Mr Tan. He revealed how he had installed a gold-plated tap at the charity's headquarters, opening a can of worms that led to an overhaul of the way charities are regulated.
An independent KPMG audit of NKF revealed systemic weaknesses, such as how the Commissioner of Charities could step in only after a complaint was made. NKF was also able to overstate subsidy figures, treatment costs and patient numbers, despite repeated audits.
In the wake of the report, the Commissioner of Charities (COC) became a full-time position. The oversight system was given tools to be more proactive, with the power to call for documents, search records of charities and appoint auditors to investigate. And in 2007, the Charity Council was formed to push charities into adopting good governance and best practices.
Even so, there was a recognition the authorities could do only so much. Prime Minister Lee Hsien Loong highlighted the role of the whistle-blower, explaining that there was no way the Government could keep watch on everything.
He said: "If you feel some group has gone wrong and you have the information about it, then come forward and give the information."
This was reiterated to The Straits Times by social service veteran Gerard Ee, current chairman of the Charity Council, who took over the reins at NKF to set things right.
"The role of a whistle-blower is very important," he said yesterday. "If you're a member of the organisation and you know something is amiss but you keep quiet, then you're equally guilty. If you sense that something is wrong, then you should question it. If the financial information is not available, then you should ask why it isn't available."
Still, it will be good if such information was readily accessible.
A plan to ensure that all charities' financial statements are posted on the COC's online Charity Portal for free viewing is yet to come to full fruition. Deadlines have been set and missed over the years. Until now, the past two years of accounts of CHC, a registered charity since 1993, are not available on the site.
"A majority of charities are not large... They don't raise a lot of funds and it may be a challenge for them to have the resources to collate financial statements on a timely basis," said Mr Ee. "The last thing we want to do is to close down charities, especially if they're doing something for a good cause. We just have to keep encouraging them to post their financial information online."
But larger religious charities like CHC are a breed apart. They work behind closed doors, and donations are at times made with a blind conviction that those in charge will always do the right thing under the scrutiny of heaven.
Kong preaches the controversial prosperity gospel, which boils down to "give, and you will receive". The more the tithe, the more the followers will get back materially on earth. As CHC's online donation page puts it: "We believe that our giving is a form of worship."
Former CHC members have spoken of the pressure they felt to donate. Some say they left when the returns never came even as church leaders seemed to be living the high life. And it is not easy to raise the issue publicly, given the possible backlash from fellow worshippers, or a higher power.
In 2003, Mr Poon came forward just before the MTV Asia Awards, where Ms Ho was vying for the Singapore Favourite Artist Award. At the time, there were allegations that church members were being used to drum up votes for her.
Kong insisted not a single cent in church funds was used to buy or promote her albums. In a week, Mr Poon, a 53-year-old businessman at the time, retracted his allegations and spent over $30,000 on apologies in newspapers. But as Mr Poon's daughter told The Straits Times yesterday: "We now know that what he did was right."
Additional reporting by Priscilla Goy
Six church officials were convicted of diverting nearly $37 million in funds to advance the pop star's career.
Posted by NBC News on Wednesday, October 21, 2015
“The accused persons chose to engage in covert operations and conspiratorial cover-ups.”
Posted by The Wall Street Journal on Wednesday, October 21, 2015
City Harvest trial: Verdict on $50m case expected on Wednesday
Saga that began in 2002 led to six former and current church leaders being arrested, charged
By Danson Cheong, The Straits Times, 21 Oct 2015
The saga began in 2002, with a pop singer's music ambitions and a church's desire to spread the Gospel.
A decade later, six former and current City Harvest Church (CHC) leaders were arrested to face varying charges of criminal breach of trust and falsifying accounts.
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