THE MAN behind Marvelstone Group - which calls itself a fintech group - is being sued in his home country of South Korea for allegedly failing to pay contractually promised returns to investors.
Marvelstone Group told BT it did not use any of the funds arising from the investments in South Korea to expand its business in Singapore. Mr Chun, who works in the financial industry, claimed that his guaranteed return due end-March 2018 never arrived, with Mr Chun questioning fund redemptions from Marvelstone Partners since 2017. Mr Chun detailed these claims in a lawsuit that he filed with another investor against Mr Cho in 2018.
The investors claimed in their legal demand that the fund was sold to them as a stable financial product. The 2013 prospectus for this fund said it was"conservative" and"stable", though to be sure, it said there was no guarantee that returns could be generated daily. The fund's performance return stood at about 40 per cent in 2012, the last available full year at that point.
Ten days before Mr Chun's investment in Marvelstone Partners was notarised by a law firm in South Korea in 2015, Mr Cho sent an email to the media, listing plans that included acquisitions of global financial institutions. He said he wanted to"develop" pension funds in Singapore. He said he wanted investors here to"retire safely", and he wanted to be"the world's first fintech-driven financial group".
Marvelstone Group's unaudited financial documents as at end of 2017 showed trade payables totalling S$938,751 that include hundreds of thousands due to a few Singapore-based investors. Its trade payables as at end-2017 were about double its trade receivables. As for Hong Leong, the company sued Marvelstone Group, Mr Cho and his wife in December 2017 for failing to pay for a licence fee and other associated costs tied to the operation of the fintech hub at 80 Robinson Road between Nov 1, 2016 and Dec 31, 2017.
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