“Computer illiterate” admits to running an illegal online gambling ring and earning S$1.28 million in 5 years

SINGAPORE – Despite having no computer skills, Shunmugam Mogan started a web-based business and earned about S$1.28 million within five years.

This could have been considered an impressive feat had his online venture not been illegal: he was operating an unlicensed remote gambling ring.

On Wednesday (4 September), the 66-year-old Singaporean pleaded guilty to seven charges:

• One count of providing a Singapore-based remote gambling service
• One count of instructing a person to commit a crime in an organized criminal group
• One count of membership in an organized criminal group
• Three cases of incitement to join an organised criminal organisation
• One count of aiding and abetting the embezzlement of property obtained by crime.

Seven other related charges will be considered at his sentencing, which is expected to take place on September 10.

WHAT HAPPENED

Sometime in early 2015, Shunmugam obtained accounts on various illegal gambling websites from a person he knew only by the name Samm.

From 2 February 2015 to 7 September 2020, Shunmugam offered a Singapore-based remote gambling service through these websites by taking and accepting bets on the outcome of Singapore Pools’ 4D and Toto games and football matches.

He had at least seven bettors under his care and recruited at least 20 agents and principal agents. These agents collected the illegal bets for him and placed them on the websites. In return, they received a share of the bets collected and all the winnings.

Deputy Public Prosecutor Quek Lu Yi told the court: “Since the defendant has no computer skills, he sought the help of his girlfriend Rabiah Kamarrudin, who managed his accounts on these websites for him.”

According to court documents, Shunmugam led the organised crime gang together with 56-year-old Singaporean Rabiah.

Shunmugam admitted that between 2018 and the end of March 2020, he and his agents collected 4D bets worth between S$18,000 and S$30,000 weekly.

“Thus, during the said period, the accused and his agents collected 4D bets worth at least S$1,080,000 to S$1,800,000,” the prosecution said.

Between February 2, 2015 and September 7, 2020 – except for sometime between April and June 2020 when Singapore Pools suspended draws during the Covid-19 shutdown period – Shunmugam made a weekly profit of approximately S$5,000 from his share of the revenue and winnings.

He made a profit of about S$1.28 million during the 64-month period, the prosecution added.

During the crime, Shunmugam also recruited several people, including his son-in-law, as agents and members of the organized crime gang.

He had also instructed Rabiah to commit the offence of aiding and abetting the provision of the remote gambling service by assisting him in various roles.

Sometime in 2015, Rabiah also bought a BMW and took an installment loan from a bank. Shunmugam asked Rabiah to repay the loan with the betting money he earned.

Through 60 instalments between September 2015 and August 2020, Rabiah, at Shunmugam’s instigation, converted betting money worth S$118,084 into an installment for the car.

Rabiah was sentenced on Monday to 31 months in prison and a fine of S$192,000 for her role in the criminal enterprise.

Shunmugam is free on bail and is expected to appear in court again on September 10 for a reduced sentence and sentencing.

If convicted of providing a remote gambling service based in Singapore, he could face a prison sentence of up to seven years, a fine of between 20,000 and 500,000 Singapore dollars, or both.

If convicted of instructing a person to commit an offence in furtherance of the illegal objectives of an organised criminal group, the offender shall face a fine of up to four times the amount of the original offence or, in addition to the maximum penalty of ten years’ imprisonment applicable to the original offence.

Membership of an organised criminal organisation is punishable by a prison sentence of up to five years, a fine of up to S$100,000, or both.

Recruiting another person for an organised criminal organisation may be punishable by a prison sentence of up to five years, a fine of up to S$250,000, or both.

Misappropriation of property acquired through criminal conduct can result in a prison sentence of up to 10 years, a fine of up to S$500,000, or both. If Shunmugam is convicted of aiding and abetting such an offence, he could face the same maximum penalty.