Police investigating trading irregularities after penny stock meltdown
Published on Apr 2, 2014 8:55 PM
The police's white-collar crimes unit has started investigating the trading activity of the three stocks involved in last October's dramatic penny share meltdown.
The Commercial Affairs Department (CAD) will work with the Monetary Authority of Singapore (MAS) as they probe suspected trading irregularities in the stock of Asiasons Capital, Blumont Group and LionGold Corp, CAD and MAS said in a joint statement on Wednesday.
The Securities and Futures Act (SFA) may have been breached, the statement noted.
Investor confidence in penny stocks was decimated by the wild price swings in Asiasons, Blumont and LionGold last year. The shares jumped between 40 and 160 per cent in August and September last year, before plunging between 91 and 96 per cent over a few days in October.
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