Developer Avoids Jail Over Rm9 5mil Illicit Payment In Mara Inc S Aussie Property Deal

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The court heard that Teen Boon Lye negotiated with Malaysian intermediaries, acting on behalf of Mara Inc, to sell Dudley International House (pic) for A$22.6 million, A$4.75 million higher than the original sale price. (File pic)
PETALING JAYA: Malaysian-born property developer Teen Boon Lye was given a suspended sentence after pleading guilty for his role in arranging a fraudulent A$3.4 million (RM9.5 million) payment to intermediaries from Malaysia, for a Melbourne property purchased by Mara Inc in 2013.
The Melbourne magistrates’ court today granted Teen, 72, a suspension of his 21-month jail term, following his guilty plea on a single charge of false accounting, News.com.au reported.
Judge Michael O’Connell ruled that the case’s unique circumstances and Teen’s personal situation warranted a non-custodial sentence, having been persuaded that the 12 years since the offence, along with Teen’s ill health, were mitigating factors.
However, he warned that if Teen committed any other crimes over the next 21 months, he may have to serve his sentence.
Last November, the Public Accounts Committee (PAC) identified overvalued properties purchased by Mara Inc in Australia and the UK in 2013 and 2014.
PAC chairman Mas Ermieyati Samsudin named the properties in question as Dudley International House, 51 Queen Street, and 333 Exhibition Street, in Melbourne, both purchased in 2013; and Beaumont House in London, bought in 2014.
It is understood that Teen was involved in the Dudley International House project.
According to news.com.au, the “highly regarded” Teen had partnered with acquaintances to purchase land and develop student accommodation in the Melbourne suburb of Caulfield in the late 2000s.
But the project hit financial difficulties and, after months of trying to refinance, he began to look for a purchaser for the project.
In October 2012, Mara agreed to purchase the development for A$17.8 million.
Teen claimed he was strung along by the Malaysian intermediates negotiating on behalf of Mara Inc for months before an “internal agreement” was reached for the development to be sold for A$22.6 million.
The excess price, amounting to A$4.75 million, was to be paid by Teen to the intermediaries.
In March 2013, Teen assisted the intermediaries to create fraudulent invoices to make the payment appear to be a legitimate business expense and tax deductible.
Judge O’Connell ruled that A$3.4 million of the money paid, or three of the four invoices, had no legitimate basis and was considered kickbacks to ensure the deal went through.
“You or your company did not receive any benefit from the inflated amount paid for by the Malaysian government,” he said.
“This was not a victimless crime, the people of Malaysia lost A$3.4 million,” he said. - FMT

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