Why did a pawnbroker resort to illegal pawning of customer goods?

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A Pawnbroker's Illegal Actions Driven by Business Decline and Cash Flow Issues

A pawnbroker resorted to illegally pawning customers' redeemable goods at other pawn shops under her own name due to a significant decline in her business, exacerbated by increased competition. This illicit scheme, which generated over S$710,000 in proceeds, was an attempt to keep her struggling pawnbroking business afloat. The pawnbroker's actions ultimately prevented the original owners from reclaiming their items.
Business Decline Due to Competition

Fun Sho Mei, the manager and shareholder of Yong Teck Pawnshop in Hougang, experienced a downturn in her business starting around 2011. This decline was attributed to heightened competition from established chain pawnshops, which significantly impacted her ability to operate profitably. The business eventually shuttered on June 3 last year.
Cash Flow Problems and Unauthorized Pawning

Facing severe cash flow problems, Fun was in dire need of funds to sustain her operations. She possessed a substantial quantity of valuables that belonged to her customers and were still within their redemption periods. Instead of adhering to legal procedures, she began pawning these customer pledges at third-party pawnshops without authorisation, using her own name to secure the funds.
Involvement of Husband and Scale of the Scheme

Fun also instigated her husband to pawn other pledges at these external pawnshops. He proceeded with these transactions under the belief that the items belonged to his wife. In total, Fun received S$711,670 from these unauthorised pawning activities across all 15 charges considered during her sentencing. For the five charges the prosecution proceeded with, she received S$421,790.
Discovery and Legal Consequences

The illegal activities came to light when RSM Corporate Advisory, appointed as receivers of Yong Teck Pawnshop's assets on November 26, 2021, reported missing pledges to the Registry of Pawnbrokers on December 16, 2021. Investigations revealed that 346 pawn tickets for these pledges had been further pawned by Fun or her husband at 12 different third-party pawnshops. Fun was subsequently sentenced to 18 months and two weeks in jail after pleading guilty to five counts of unauthorised pawning of goods.

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Why did a pawnbroker resort to illegal pawning of customer goods?

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