Former CGS-CIMB dealer jailed over market rigging

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Former CGS-CIMB broker jailed over market rigging


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. She was a part of an alleged multi-member scheme mentioned to have artificially pushed up the share value 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 chief government in January 2015, and he then requested for Lau’s help within the scheme. Between February 2015 and October 2015, Lau approached and satisfied 9 shoppers at CGS-CIMB to let her use their buying and selling accounts to commerce Koyo shares, from February until January 2016. She additionally satisfied her brother and his spouse handy over three of their buying and selling accounts for a similar function, although her brother executed the trades instantly.

Those that supplied their buying and selling accounts had been promised a fee of 10 per cent from any income made via their accounts, whereas any losses incurred could be paid by the scheme members.

Between October 2015 and January 2016, Lau obtained extra buying and selling accounts for use, after informing her shoppers earlier that she was contemplating leaving CGS-CIMB to hitch both RHB Securities or KGI Securities. This got here after she realised CGS-CIMB was proscribing her credit score limits. Nevertheless, Lau informed her shoppers – except for her brother – that she was leaving on account of “work points”.

Consequently, her CGS-CIMB shoppers opened or reactivated a complete of 17 RHB and KGI buying and selling accounts. She sought assist from two workers on the corporations to hold out the trades. Her brother additionally handed over two extra accounts he opened in his title to her. Ultimately, Lau didn’t go away CGS-CIMB.

Total, she 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 would doubtless create a false or deceptive impression of lively buying and selling within the shares underneath part 197(1A)(a) of the Securities and Futures Act (SFA), and 12 counts of unauthorised buying and selling underneath part 201(b) of the SFA. Nineteen different related costs had been considered for sentencing. Moreover, on account of CGS-CIMB’s authorized motion, Lau paid the agency some $231,000 on account of their losses following the crash in Koyo share value in January 2016.

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

Koyo shares closed down 0.5 cent or 6.25 per cent at 7.5 cents on Thursday.

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