Ex-boss of online platform YuuZoo charged; former chairman on Interpol red notice

Former YuuZoo CEO James Matthew Somasundram leaving the State Courts / Photo credit: The Business Times

James Matthew Somasundram, former CEO of suspended online platform YuuZoo Corporation, has been charged over alleged misleading financial reports released by the company.

Meanwhile, Thomas Zilliacus, who was CEO and chairman of YuuZoo at the time of the alleged offenses, is also facing a warrant of arrest. He also has an Interpol red notice issued against him.

Zilliacus, who made headlines last year after he put in a bid for Manchester United, is currently out of Singapore and has refused to return, according to a police statement.

An Interpol red notice is a request to law enforcement worldwide to locate and provisionally arrest a person pending extradition, surrender, or similar legal action.

Founded in 2008, YuuZoo’s platform combined social networking, ecommerce, gaming, and online payments. It went public on the SGX mainboard in 2014, but trading of its shares has been suspended since March 2018.

In April 2018, YuuZoo said it was under investigation by Singapore’s Commercial Affairs Department for possible breaches of the Securities and Futures Act.

Apart from Zilliacus, warrants of arrest have been issued against three other individuals who were also allegedly involved in the matter but are out of Singapore and have refused to return. They are then-CFO Michael Parker, as well as Anthony Williams and Ozi Amanat, who were independent directors at the time.

Now known as YuuZoo Networks Group Corporation, the company is listed on the SGX mainboard and released quarterly financial reports under its listing obligations. Several of such reports released between 2015 and 2016 were allegedly misleading, as investigations found they overstated revenue by US$4.6 million to US$18.8 million.

Somasundram faces four charges under the Securities and Futures Act for his role in the release of these reports by YuuZoo. The statement noted that Somasundram is alleged to have been negligent in connection with the financial reports released during the period from the fourth quarter of 2015 to the third quarter of 2016.

“If convicted, he may be sentenced to imprisonment for a term not exceeding seven years and/or a fine not exceeding S$250,000 (US$186,231), for each charge,” the statement said.

See also: Rising AI entrepreneur admits to faking his Cambridge Ph.D.

Somasundram was appointed CEO of YuuZoo in October 2015, and stepped down in November 2016 for health reasons.

Currency converted from Singapore dollars to US dollars: US$1 = S$1.34.