Alpha Energy’s ex-MD fined $137,000 by MAS for insider trading
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Eugene Ang Yew Jin has paid MAS the civil penalty without court action.
ST PHOTO: LIM YAOHUI
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SINGAPORE - The Monetary Authority of Singapore (MAS) and the Singapore Police Force have imposed a civil penalty of $137,000 on Eugene Ang Yew Jin for insider trading of Alpha Energy Holdings’ shares, they said in a joint statement on Nov 17.
The former group managing director admitted to contravening the insider trading provision under section 218(2)(a) of the Securities and Futures Act.
Ang has also paid MAS the civil penalty without court action.
On Nov 18, 2019, the group said that a creditor had declared the entire principal sum of US$64 million (S$83 million) owed by Alpha Energy as immediately due and payable, following the company’s default in the partial repayment of a loan.
The principal sum demanded by the creditor represented around 10 times the value of current assets held by the company as at June 30, 2019. Trading of Alpha Energy’s shares were immediately suspended post-announcement.
Ang had sold 2,413,300 Alpha Energy shares on Nov 13, 2019, held in his parents’ trading accounts while in possession of such “non-public, material information”, the statement indicated.
His parents therefore avoided losses of around $54,900 because of the sale of shares ahead of the news.
At the time, Ang was a non-executive director of the group.
“By virtue of his position, he knew of the group’s failure to make repayment,” MAS and the police said in the joint statement. “Further, Ang knew that in accordance with the loan agreement, the creditor had a right to demand immediate payment of the entire principal sum when the group defaulted on its repayment.”
At this juncture, Ang has also given a voluntary undertaking not to be a director or be involved in the management of a company for two years, with the exception of any company that may be excluded with MAS’ consent. THE BUSINESS TIMES
