The Singapore High Court in [2025] SGHC 188 has delivered a significant ruling in a case concerning a fraudulent luxury property scheme in Niseko, Japan. The project, branded as a high-end residential development, was promoted to investors as a credible opportunity but ultimately collapsed, causing substantial financial losses.
The claimant had agreed to purchase a unit for nearly US$1.9 million and paid US$1.786 million over 2017–2018. She argued that those involved in promoting the project misrepresented critical facts to induce her investment.
These representations included claims that the development company had acquired the Niseko land, that construction was imminent, and that insiders themselves were investing in the project to demonstrate its credibility. In reality, the land was never acquired, construction never commenced, and investor funds were misapplied.
The Court found that one of the defendants, who described himself as a passive intermediary, in fact played an active role in promoting the project. He reassured the claimant, concealed material risks, discouraged independent legal advice, and projected himself as a reliable guarantor, despite knowing of the project’s instability.
The High Court held the defendants liable for fraudulent misrepresentation, negligent misstatement, and conspiracy by unlawful means. Their conduct was found to have directly induced the claimant’s investment and caused her losses.
The Court ordered repayment of US$1,786,000 with interest at 5.33% per annum from the date of filing, together with legal costs.
Appearances:
Claimant: Jimmy Yim Wing Kuen SC, Manoj Belani, Nikhil Daniel Angappan, Sia Tian Wa Jeremy Marc, Adam Tan (Drew & Napier LLC) for the claimant;
First Defendant: Chan Tai-Hui Jason SC, Kek Meng Soon Kelvin, Gan Yun Han Rebecca, Kenneth Wang Ye (Allen & Gledhill LLP);
Second defendant and third parties absent and unrepresented.