Monetary Authority of Singapore (MAS) has issued Prohibition Orders (PO) against three Singaporean men who ran an illegal share trading scheme through which they made $2Million each.

The POs against Simon E Seck Peng (former representative of UOB Kay Hian) and Leong Chee Wai (former representative of First State Investments Singapore), are each for a duration of 15 years. Toh Chew Leong (former representative of First State Investments Singapore) was given a PO of 13 years. All three POs are in effect from 13 Aug 2019.

Due to this ban, the three individuals are prohibited from:

  • performing any regulated activity under the Securities and Futures Act (SFA)
  • taking part in the management of any capital market services firm
  • acting as a director or becoming a substantial shareholder of any capital market services firm under the SFA

Identifying this as a case of insider trading, MAS revealed that the three men had colluded to misuse confidential information obtained in the course of their work for personal gain, when they were representatives of capital market services licence-holders. It was the first front-running case prosecuted as an insider trading offence, which attracts a heavier punishment, in part due to the involvement of price sensitive information.

Last month, Leong, E and Toh were convicted of insider trading offences and sentenced to 36 months, 30 months and 20 months imprisonment respectively.

The offences were committed between 2007 and 2014 involving about 40 companies including Ascendas Real Estate Investment Trust, CapitaMalls Asia and Global Logistic Properties.

 

Date: 15 August 2019

Argus Global specializes in regulatory compliance. We can help you determine if your company is up to date with the latest regulations with compliance reviews, and we offer as well ongoing support for all your compliance needs.

 

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