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Monetary Authority Of Singapore Bans Four Individuals For Market Misconduct

Date 03/03/2021

The Monetary Authority of Singapore (MAS) has issued prohibition orders (POs) against the following four individuals, following their convictions for market misconduct offences [1] :

 Name  Duration of Prohibition Orders 
 Ms Lau Wan Heng (Ms Lau), former remisier of CGS-CIMB Securities (Singapore) Pte. Ltd. (CIMB)  10 years
 Mr Yeo An Lun (Mr Yeo), former representative of Prudential Assurance Company Singapore (Pte) Limited (PACS)  6 years
 Mr Goh Qi Rui Rayson (Mr Goh), former remisier of OCBC Securities Private Limited (OSPL)  5 years
 Mr Teo Boon Cheang (Mr Teo), former remisier of KGI Securities (Singapore) Pte. Ltd. (KGI)   4 years

 

2     These four individuals are prohibited from providing any financial advisory service, or taking part in the management, acting as a director, or becoming a substantial shareholder of any licensed financial adviser under the Financial Advisers Act (FAA). In addition, Ms Lau, Mr Goh and Mr Teo are prohibited from carrying out any regulated activities and from taking part in the management, acting as a director, or becoming a substantial shareholder of any capital market services licensee under the Securities and Futures Act (SFA). The prohibition orders took effect from 1 March 2021.

3     These four individuals were among the eight individuals charged for offences under the SFA in relation to a scheme to commit false trading in the shares of Catalist-listed Koyo International Limited (Koyo) [2] . They were convicted and sentenced to imprisonment terms of between three months and 20 months 18 weeks. The court proceedings against the other four individuals are ongoing.

4     Ms Loo Siew Yee, Assistant Managing Director (Policy, Payments & Financial Crime), MAS, said, “MAS expects representatives of our financial institutions to act with honesty and integrity. By being involved in the false trading scheme, the former financial representatives abused the trust of their customers or employers for personal gain. Their actions also resulted in the distortion of the market. MAS does not tolerate such misconduct and will take firm action to keep such offenders out of the financial industry. MAS will continue to work closely with other authorities and stakeholders to keep our financial markets fair and orderly."

10-year POs against Ms Lau

5     Between February 2015 and January 2016, Ms Lau, then a remisier of CIMB, assisted one Lin Eng Jue (Mr Lin) [3] to create a false appearance of active trading in Koyo shares, by carrying out trades in the shares in her clients’ accounts on Mr Lin’s instructions. When CIMB restricted the trading limits of the clients’ accounts, Ms Lau convinced the clients to open or reactivate trading accounts with other brokerage firms on the pretext that she was leaving CIMB to join those brokerage firms. She then handed control of some of these accounts to other persons to place trades in Koyo shares. She also allowed others to use her relatives’ accounts to place trades in Koyo shares.

6     Ms Lau was charged under section 197(1A)(a) of the SFA (“false trading”) for controlling the trading of Koyo shares while knowing that this would likely create a false appearance of active trading in the shares. She was also charged with 31 counts of unauthorised trading under section 201(b) of the SFA, by carrying out trades in clients’ accounts or allowing others to trade in the accounts, without the authorisation of the brokerage firms. Ms Lau pleaded guilty and was convicted on the false trading charge and 12 unauthorised trading charges, with the remaining charges taken into consideration for the purpose of sentencing. On 15 October 2020, she was sentenced to imprisonment of 20 months and 18 weeks.

6-year PO against Mr Yeo

7     Between August 2014 and January 2016, Mr Yeo, then an insurance agent of PACS, assisted Mr Lin to create a false appearance regarding the price of Koyo shares, by handing over his (Mr Yeo’s) trading accounts to Mr Lin to trade in Koyo shares.

8     Mr Yeo was charged under section 197(1)(b) of SFA read with section 109 of the Penal Code (PC) for intentionally aiding Mr Lin to control the trading of Koyo shares for the purpose of creating a false appearance regarding the price of the shares. Mr Yeo also faced 10 unauthorised trading charges under section 201(b) of the SFA for handing over control of his accounts to Mr Lin. Mr Yeo pleaded guilty and was convicted on the false trading charge and two unauthorised trading charges, with the remaining charges taken into consideration for the purpose of sentencing. On 18 June 2020, he was sentenced to 26 weeks’ imprisonment.

5-year POs against Mr Goh

9     Between March 2015 and January 2016, Mr Goh, then a remisier of OSPL, assisted Mr Lin to create a false appearance regarding the price of Koyo shares, by carrying out trades on Mr Lin’s instructions in Mr Goh’s clients’ trading accounts.

10     Mr Goh was charged under section 197(1)(b) of the SFA read with section 109 of the PC for intentionally aiding Mr Lin to control the trading of Koyo shares for the purpose of creating a false appearance regarding the price of the shares. He also faced four unauthorised trading charges under section 201(b) of the SFA for carrying out trades in Koyo shares in his clients’ accounts on Mr Lin’s instructions. Mr Goh pleaded guilty and was convicted on the false trading charge and one unauthorised trading charge, with the remaining charges taken into consideration for the purpose of sentencing. On 19 February 2020, he was sentenced to four months’ imprisonment.

4-year POs against Mr Teo

11      Between September 2015 and January 2016, Mr Teo, then a remisier of KGI, assisted Mr Lin to create a false appearance regarding the price of Koyo shares by placing orders in his KGI trading account on Mr Lin’s instructions.

12     Mr Teo was charged under section 197(1)(b) of the SFA read with section 109 of the PC for intentionally aiding Mr Lin to control the trading in Koyo shares for the purpose of creating a false appearance regarding the price of the shares. He pleaded guilty and was convicted on that charge. He was sentenced to three months’ imprisonment on 19 February 2020.

  1. [1] The case was referred to MAS by the Singapore Exchange Securities Trading Ltd.
  1. [2] Please refer to the following link: https://www.mas.gov.sg/regulation/enforcement/enforcement-actions/2019/Eight-individuals-charged-for-offences-under-the-Securities-and-Futures-Act
  1. [3] Mr Lin is facing a total of 50 charges, comprising one count of false trading under section 197(1)(b) of the SFA and 49 counts of unauthorised trading under section 201(b) of the SFA. The court proceedings against Mr Lin are still ongoing.