Former CGS-CIMB dealer jailed for manipulating Koyo shares

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Former CGS-CIMB broker jailed for manipulating Koyo shares


Thu, Oct 15, 2020 – 6:24 PM

THE Singapore courtroom on Thursday sentenced a former CGS-CIMB Securities worker to twenty months and 18 weeks’ jail for her involvement in manipulating buying and selling within the shares of Catalist-listed Koyo Worldwide between August 2014 and January 2016.

Lau Wan Heng, 62, initially a dealer and later a remisier on the brokerage agency, will start her sentence on Oct 29.

Lau was a part of an alleged multi-member scheme that was mentioned to have artificially pushed up the share worth of Koyo – a supplier of built-in mechanical and electrical engineering companies – throughout the interval.

Alleged mastermind Lin Eng Jue, 43, was launched to Lau by the Koyo CEO in January 2015, the place he then requested for Lau’s help within the scheme.

Between February 2015 and October 2015, Lau approached 9 of her purchasers at CGS-CIMB, and satisfied them to permit her to make use of their buying and selling accounts to commerce Koyo shares, during which she carried out trades from February that yr until January 2016.

She additionally satisfied her brother and his spouse at hand over three of their buying and selling accounts for a similar goal, although her brother executed the trades instantly.

Those that offered their buying and selling accounts have been promised a fee of 10 per cent from any earnings made by means of their accounts, and that any losses incurred could be paid by the scheme members.

Within the ultimate section of the scheme between October 2015 and January 2016, Lau obtained extra buying and selling accounts for use, after earlier informing her purchasers that she was contemplating leaving CGS-CIMB to hitch both RHB or KGI Securities. This got here after she realised that CGS-CIMB was proscribing her credit score limits.

Nonetheless, Lau advised her purchasers – apart from her brother – that she was leaving resulting from “work points”.

Consequently, her CGS-CIMB purchasers opened or re-activated a complete of 17 RHB and KGI buying and selling accounts. She sought assist from two different workers on the respective companies to hold out the trades. Her brother additionally handed over two extra accounts he opened in his identify to her. Finally, Lau didn’t go away CGS-CIMB.

General, Lau contributed to 31 of the whole 53 buying and selling accounts used within the scheme.

On Thursday, she was convicted on one depend of partaking in a course of conduct which she knew could be more likely to create a false or deceptive impression of lively buying and selling within the shares below part 197(1A)(a) of the Securities and Futures Act (SFA), and 12 counts of unauthorised buying and selling below part 201(b) of the SFA. Nineteen different comparable prices have been considered for sentencing functions.

Moreover, because of authorized motion taken in opposition to Lau by CGS-CIMB, she paid some S$231,000 to the agency, on account of their losses made following the crash in Koyo share worth in January 2016.

Lau is the fourth individual within the scheme to have been sentenced. Lin and three others have been charged, and their instances are ongoing.

Koyo shares closed down S$0.005 or 6.25 per cent at S$0.075 on Thursday.

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