Social media company YuuZoo Corporation is under investigation by the Singapore Police Force’s Commercial Affairs Department (CAD) for possible breaches of the Securities and Futures Act, Chapter 289.
CAD raided its office and seized documents for the financial years 2013 to 2016. These included franchise agreements and related correspondences, business plans of franchisees, all general ledgers of the company, and correspondences and working documents for all valuation reports of franchisees, according to a Singapore Exchange (SGX) filing by the company.
CAD has also seized various hard disks, laptops, chargers and adapters of certain employees, as well as former CEO Thomas Zilliacus’s passport, personal diaries, organisers and phonebooks. Thomas Zilliacus, who was the CEO from 2013 to 2015, was interviewed by CAD alongside former head of franchise management Sebastian Zilliacus. CAD also seized IT equipment and corporate emails from James Sundram, former CEO from 2015 to 2016.
“The CAD has not disclosed to the company any further details on the above mentioned investigations; and as far as the company is aware, no arrests have been made in respect of the aforesaid investigations,” the SGX filing said.
According to The Straits Times, an independent review of YuuZoo was carried out last October by Ernst & Young Advisory (EY), covering issues including former employees’ allegations of wrongdoing. The Singapore Exchange Regulation (SGX RegCo) first imposed a notice of compliance on the company on 5 March 2018, after YuuZoo did not provide EY with the information required for the independent review, Singapore Business Review reported.
YuuZoo recorded a revenue drop of 67% to SG$9,712,000 in the fourth quarter of 2017 (Q4 17) ended 31 December. Other income increased from SG$159,000 in Q4 16 to SG$8.0 million in Q4 17 due to the purchase of assets related to the formation of YuuLog France.
Earlier this year, the company appointed COO Mohandas as CEO of the Singapore office. The company was founded in 2008 and is headquartered in Singapore and has offices across Southeast Asia, China and Nigeria. It has representative offices in Australia, New Zealand and the US, among other countries.