Employer jailed for instructing fire extinguisher salesmen to lie during police probe into deceptive sales practices

Employer directed fire extinguisher salesmen to provide false accounts during police investigation

On Thursday (29 Aug), Kelvin Tan Yaosheng, sole proprietor of Fire Safety & Prevention (SG), was jailed for instructing his salesmen to provide false statements during a police investigation into deceptive sales practices involving fire extinguishers.

According to Channel NewsAsia (CNA), Tan had directed his employees to give misleading accounts to law enforcement in an effort to shield his business from repercussions.

Tan received a one-week jail sentence for obstructing justice, with a second similar charge considered in the court’s decision.

Salesmen used deceptive sales tactics

In 2019, the sales team employed two misleading strategies while selling fire extinguishers door-to-door.

Firstly, they falsely represented themselves as being affiliated with public organisations or community centres.

Specifically, they claimed that PAssion card holders could receive discounts due to their supposed collaboration with the People’s Association (PA). In reality, there was no such affiliation.

Secondly, the salesmen misrepresented the price of the fire extinguishers, quoting S$17.90 when the actual price was S$179.

Tan received specific complaints from customers in May and June 2019, who reported being charged the inflated amount.

These complaints prompted a police investigation into the sales tactics.

Business over honesty

In 2020, the police conducted separate interviews with Tan and his salesmen. Tan was the first to provide his statement.

Following his interview, Tan sent a message via the company’s WhatsApp group, instructing all salesmen to give consistent statements during their interviews with the police.

He directed them to claim that the fire extinguishers were always sold at S$179 and that buyers signed invoices reflecting this amount before payment was collected.

At this point, Tan had received multiple complaints about the salesmen’s deceptive practices and knew that this narrative was likely false.

Later that year, the Competition and Consumer Commission of Singapore (CCCS) also investigated the issue.

Aware that the CCCS would interview both him and his salesmen, Tan advised his employees to schedule their interviews after his own.

Once he had spoken to the CCCS and knew the questions they would ask, he again instructed his team to provide the same false account.

Motivated by self-interest

In court, District Judge Kok Shu-En acknowledged the defence’s argument that Tan was not directly covering up his own misconduct and did not fully grasp the extent of his employees’ deceptive practices.

However, she highlighted that Tan’s primary concern was not the truth but maintaining a consistent narrative that would benefit him.

The judge also pointed out that Tan’s efforts to influence all his employees’ statements showed a significant attempt to obstruct the investigation.

For obstructing justice, Tan could have faced up to seven years in prison, a fine, or both.

Also read: S’porean CEO David Yong charged with falsification of accounts, may face up to 10 years’ jail

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