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Former UOB Kay Hian employee gets prohibition orders for false, unauthorised trading

Former UOB Kay Hian employee gets prohibition orders for false, unauthorised trading

The logo of the Monetary Authority of Singapore is seen on its main building in Singapore on May 24, 2016. (File photo: AFP/Roslan Rahman)

SINGAPORE: A former UOB Kay Hian (UOBKH) trading representative was issued with prohibition orders by the Monetary Authority of Singapore (MAS) on Thursday (Aug 18) for false and unauthorised trading.

The four-year prohibition orders against Ms Chua Kah Boey took effect on Thursday.

A civil penalty of S$100,000 was also imposed on Ms Chua for contraventions of the Securities and Futures Act 2001. She has paid this amount to MAS without court action, the central bank noted.

“Ms Chua had committed false trading by executing a client’s instructions to purchase Gaylin Holdings Ltd (GHL) shares for the purpose of creating a misleading appearance with respect to the price of the shares,” MAS said in a media release.

“She also committed unauthorised trading by executing a third party’s trading instructions through two other trading accounts without authorisation from her former employer.”

Under the prohibition orders, Ms Chua cannot perform any regulated activity or take part in the management of, act as a director of, or become a substantial shareholder of a holder of any capital markets services firm under the Securities and Futures Act 2001.

She is also barred from providing financial advisory services and cannot take part in the management of, act as a director of, or become a substantial shareholder of any financial advisory firm under the Financial Advisers Act 2001.

INFLATED SHARE PRICES

The false and unauthorised trading took place in 2016, when Ms Chua managed UOB Kay Hian trading accounts belonging to Wong Leon Keat and three other individuals.

“Between Feb 15, 2016, and Oct 25, 2016, Ms Chua executed Mr Wong’s trading instructions through one of the other individuals’ UOBKH trading account, inflating the closing price of GHL shares by between 6.5 per cent and 38.6 per cent,” MAS said.

“Ms Chua also executed Mr Wong’s trading instructions through the UOBKH trading accounts of two other individuals, without notifying and seeking UOBKH’s authorisation of these arrangements.

“This was likely to deceive UOBKH into believing that the trades executed through these accounts had been instructed by the respective account holders.”

Wong was convicted of seven charges of false trading and one instance of deceiving UOB Kay Hian in February 2021.

On Mar 12, 2021, he was sentenced to eight weeks in prison for false trading and fined S$30,000 for unauthorised trading. An appeal against his custodial sentence was dismissed.

Source: CNA/kg(rj)

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