Ex-CIMB banker fined $180k over insider trading

Alan Tay Yeow Kee, a former CIMB Group banker, admitted to insider trading on two stocks before the companies received takeover offers.

Tay, 41, pleaded guilty to trading on price-sensitive information in a Singapore court yesterday and was fined $180,000.

He bought shares in Qualitas Medical Group and welding products supplier Leeden in 2011 before the information he had was available publicly.

CIMB was the financial adviser in both deals, prosecutor Joel Chen said in court.

The companies were delisted from Singapore's stock exchange after being acquired.

Singapore has been clamping down on market misconduct to protect its image as a financial hub.

 The Monetary Authority of Singapore is appealing in court to raise the civil penalties imposed on a divorced couple for unauthorised stock trading, and has said it will continue to boost enforcement and surveillance abilities to deter criminal behaviour and poor controls.

Tay, who was an associate director in the corporate client solutions department at CIMB, was also accused of encouraging Mr Eddy Cheng Hong Wee to buy the stocks, according to charge sheets when the men were indicted last year.

Tay persuaded Mr Cheng, his former schoolmate, to buy shares in Qualitas and Leeden, the prosecutor said yesterday.

He added that the men split profits of about $60,000. Charges against Mr Cheng were dropped.


A version of this article appeared in the print edition of The Straits Times on May 27, 2017, with the headline 'Ex-CIMB banker fined $180k over insider trading'. Print Edition | Subscribe