SINGAPORE: A physician who made an investment in a lodge in the United Kingdom after attending an event on real estate lost money when the property was sold.
A district court in Singapore awarded him about S$ 85, 000 ( S$ 61, 800 ) after he sued the seminar’s speaker, a woman who identified herself on the event brochure as an astute real estate investor.
Property adviser and investor Wendy Kwek had broken her duty of care to Dr. Lim Chong Teck, District Judge Tan May Tee found in a decision that was made public on Wednesday( Oct 4 ).
During a string of real estate events in Singapore in 2013, Dr. Lim was one of 85 defendants who purchased products at the Tillington Hall Hotel in Stafford, UK, and suffered loss.
They had been introduced to the job by Ms. Kwek, who assured them that it would be successful. & nbsp,
Dr. Lim’s state was ultimately heard in a city court, and all of the plaintiffs withdrew their states in the High Court.
WHAT TAKEN PLACE
Dr. Lim, an ear, nose, and throat specialist, claims that in January 2013, he came across an ad in a neighborhood newspaper promoting Ms. Kwek’s completely two-hour” Property Riches Seminar.”
She was referred to as” Ms. Wendy Kwek, Spirit of Enterprise Awardee 2004.” & nbsp,
Dr. Lim considered himself to have” zero knowledge when it comes to home investment.”
He attended the free conference, which was sponsored by WK Events and hosted by Ms. Kwek, around January 20, 2013.
Ms. Kwek presented herself throughout the lecture as a wise business owner and real estate investor with extensive experience and success in both her personal assets and advising others on investment properties.
She discussed how savvy investors have been amassing millions of dollars in the real estate business, how common people can also become wealthy by taking the right steps, and how to find good investment opportunities both locally and internationally during the two-hour workshop.
Ms. Kwek urged the attendees to enroll in the” Property Riches Program ,” a two-and-a-half day course that cost S$ 2, 995.
According to Dr. Lim, Ms. Kwek promised the program’s participants that they would join her expense network and receive special investment opportunities that she had privately sourced and evaluated using tried-and-true investment strategies.
Dr. Lim enrolled in the course and attended it in March 2013 to join Ms. Kwek’s system of investors.
Ms. Kwek introduced the Tillington Hotel funding opportunity in an email to the community in July 2013. & nbsp,
She referred to it in her email as” an undervalued, successful, and hassle-free investment deal” that she had privately visited the UK to view and evaluate.
Dr. Lim attended Ms. Kwek’s later briefings on the project, which attracted a sizable crowd.
Dr. Lim claimed that Ms. Kwek assured the guests that she had conducted all the important and pertinent due diligence.
She predicted that the project may produce returns of at least 7 % in the first year, rising steadily over time.
She may lead them to leave the job and promote their investments at two times the amount they had invested by about the sixth or seventh month, when it would yield results of about 14 %.
She also invited the restaurant’s designer director on stage to discuss the project and the anticipated yield.
Based on what Ms. Kwek had said, Dr. Lim was persuaded that the project was sound and profitable. In July 2013, he made a holding deposit of S.$ 10, 000 to purchase the double room unit, and in August 2013, the full payment of£ 52, 000 — at the time, it was worth about S$ 100,000 — was made.
The job, but, failed. The promised results that Dr. Lim was promised in the emails or exhibitions were never delivered.
Over a five-year period, the investment did not even produce returns of 7 % annually, and by the sixth year of 2019, it had fallen short of 14 %.
Instead, between 2013 and 2017, Dr. Lim received a rental income of about South$ 18, 400 from his purchase in the hotel.
Lodge SOLD FOR A FRAUD
The Tillington Hotel was sold at a loss in June 2021, and Dr. Lim only received£ 3, 949 of the money. & nbsp,
This was far from the unit’s original purchase price, nor was it even close to the double the amount he claimed Ms. Kwek had promised owners.
Dr. Lim calculated his investment job losses at S$ 84, 989.55, which included the unit’s buy price, legal fees, and additional fees and taxes.
He asserted that Ms. Kwek was responsible for his loss as a result of her failure to carry out appropriate expected application and offer appropriate purchase counsel. Additionally, he asserted that she had violated the Misrepresentation Act by making a dishonest or careless false statement.
The due diligence claim was supported by his attorneys by a typical law breach of duty of care as well as the terms of the contract that Dr. Lim and Ms. Kwek entered into in their power as WK Investment Network members.
Dr. Lim claimed that Ms. Kwek had failed to inform him that the hotel was never properly trading because nearly half of its rooms were vacant throughout the year, according to the 52.15 percent occupancy rate stated in its finances for 2011 and 2012.
The WK Investment Network was an casual grouping of people interested in investing in house, and its development was never intended to create legal or contractual responsibility, according to Ms. Kwek, who categorically refuted Dr. Lim’s state.
Ms. Kwek did tell attendees that she would finish the project and leave with them at a profit after five to seven years, even though she did offer Dr. Lim to the investment option.
She also denied offering Dr. Lim any fiscal or purchase tips.
She argued that at the beginning of the program, participants were given a thorough statement stating that they must practice due diligence before making any investment or purchase decisions.
Before making any home purchases or payments, the statement even advised participants to consult with experts like legal counsel, accountants, and bankers.
Dr. Lim’s claim on this foundation was rejected by the judge because it was determined that there was no legal relationship between him and Ms. Kwek.
She did discover, however, that Ms. Kwek did have a common rules duty of care to Dr. Lim. Judge Tan remarked that Ms. Kwek did take specific accountability for her remarks made during the program.
She didn’t dispute Dr. Lim’s testimony that she had orally promised attendees she would research and find undervalued properties with significant growth potential, hold onto the investments with them, and finally persuade them to sell them for a profit.
Ms. Kwek admitted during cross-examination during the trial that she had never told the exhibition attendees she represented the developer or instructed them to get their own real estate agent.
She also didn’t tell them that they should carry out their own thorough research investigations on the job.
Also, the judge noted that Ms. Kwek received all of the fee from the project.
Ms. Kwek would have received at least 10 % in committee, according to a former colleague of hers’ testimony.
Judge Tan determined that Dr. Lim was unable to establish Ms. Kwek’s scams. She mentioned that Ms. Kwek had even bought a Tillington Hotel room.
Dr. Lim was given restitution of S$ 84 989.55 because he had established his declare and Ms. Kwek did not contest his loss in any way.