2 ex-traders suspended, fined in false trading case linked to tycoon Wiluan

Two former trading representatives have received civil penalties and were issued prohibition orders from the Monetary Authority of Singapore (MAS) for false trading.

The traders had executed orders from their client, Indonesian tycoon Kris Wiluan, to purchase shares of now-collapsed oil services firm KS Energy to create a false or misleading appearance for the counter's share price.

In a statement on Monday, MAS said Ms Ngin Kim Choo and Mr Yeo Jin Lui, who were then employed by CGS-CIMB Securities (Singapore) as trading representatives, have paid their civil penalties without court action.

Ms Ngin paid civil penalties of $100,000, while Mr Yeo paid $50,000. Ms Ngin was also issued a five-year prohibition order, while Yeo was issued a four-year prohibition order, both of which took effect on Monday.

The prohibitions under the orders include performing any regulated activity and providing any financial advisory service to holders of any capital markets services firm under the Securities and Futures Act (SFA).

Earlier in 2021, Mr Wiluan - who was the chief executive of Singapore-listed KS Energy - was fined $480,000 by the State Courts after he was convicted on three counts of market rigging involving the company's shares. He previously faced 112 charges related to the violation of Section 197 of the SFA, which covers false trading and market rigging transactions.

As former trading representatives, Ms Ngin had managed the CGS-CIMB trading account used by Wiluan, while Mr Yeo managed the account on Ms Ngin's behalf in her absence.

MAS said Ms Ngin and Mr Yeo had the discretion to manage and advise on the execution of trades to achieve Wiluan's desired price for KS Energy shares.

Ms Ngin had traded KS Energy shares on 29 occasions between Oct 14, 2015, and Sept 13, 2016, inflating the traded price by at least 5 per cent, while Mr Yeo had traded the shares on seven occasions between Sept 22, 2015, and Oct 13 the same year, inflating the traded price by at least 5 per cent.

Noting that trading representatives must play their part in helping to safeguard market integrity, Ms Loo Siew Yee, assistant managing director for policy, payments and financial crime at MAS, said: "The civil penalties and prohibition orders against the two individuals reflect MAS' firm resolve to stamp out such conduct."

The authority noted that a civil penalty action is not a criminal action and does not attract criminal sanctions.

THE BUSINESS TIMES