Two former CIMB employees get prohibition orders after market rigging case linked to ex-CEO of KS Energy
SINGAPORE: Two former employees of CIMB Securities (Singapore) have been issued prohibition orders for false trading, after a market rigging case involving the former CEO and chairman of KS Energy Kris Wiluan.
Ms Ngin Kim Choo, who managed the CIMB trading account used by Mr Wiluan, was issued a five-year prohibition order, said the Monetary Authority of Singapore (MAS) on Monday (Apr 25).
Mr Yeo Jin Lui, who managed the account in Ms Ngin’s absence, was issued a four-year prohibition order that took effect on Apr 25.
Ms Ngin and Mr Yeo have also paid MAS civil penalties of S$100,000 and S$50,000 respectively without court action, said the financial regulator.
"Both executed a client’s instructions to purchase KS Energy (KSE) shares for the purpose of creating a false or misleading appearance with respect to the price of KSE shares," it added.
Mr Wiluan was in May 2021Â convicted of market rigging offences and ordered to pay a fine of S$480,000.
He had rigged the market 112 times between Dec 19, 2014 and Sep 13, 2016 by giving instructions to push up or maintain the share price of KS Energy.Â
The police had said that on certain trading days, he gave instructions to trading representatives in CIMB Securities (Singapore) to purchase KS Energy shares for the purpose of pushing up the company's share price.Â
In its media release on Monday, MAS noted that Mr Wiluan's instructions with regard to the false trades were conveyed to Ms Ngin and Mr Yeo, who had the discretion to manage and advise on the execution of trades to achieve his desired price for KSE shares.
Between Oct 13, 2015 and Sep 13, 2016, Ms Ngin traded KSE shares on 29 occasions, inflating the traded price by at least 5 per cent, said MAS.
Between Sep 22, 2015 and Oct 13 that year, Mr Yeo executed trades in KSE shares on seven occasions, also inflating the traded price by at least 5 per cent.
During the period of the prohibition orders, Ms Ngin and Mr Yeo are prohibited from carrying out the following actions:
- Performing any regulated activity or from taking part in the management of, acting as a director of, or becoming a substantial shareholder of a holder of any capital markets services firm under the Securities and Futures Act (SFA); andÂ
- Providing any financial advisory service or taking part in the management of, acting as a director of, or becoming a substantial shareholder of any financial advisory firm under the Financial Advisers Act.
"Trading representatives must play their part in helping to safeguard market integrity. It is unacceptable for trading representatives to knowingly facilitate market misconduct," said Loo Siew Yee, MAS' assistant managing director for policy, payments & financial crime.
"The civil penalties and prohibition orders against the two individuals reflect MAS’ firm resolve to stamp out such conduct.”