The Monetary Authority of Singapore (MAS) imposed civil penalties on five individuals—Mr. Aw Yong Leon Heng, Mr. Neo Say Hwee, Mr. Chang Bing Quan Daryl, Mr. Cheng Jia Hong, and Mr. Tan Keng Cheng for engaging in false trading and unauthorised use of trading accounts. Their actions were carried out with Mr. Lim Tiong Hian (also known as Kenneth Lim), the former Chairman of Epicentre Holdings Limited, who orchestrated the price manipulation of Epicentre shares.

The enforcement actions followed a joint investigation by MAS and the Commercial Affairs Department (CAD) of the Singapore Police Force, based on a referral from the Singapore Exchange Securities Trading Limited.

Key Findings:

• The individuals manipulated the price of Epicentre Holdings Limited shares between January and May 2019, Securities and Futures Act which prohibits false trading.
• Mr. Aw Yong placed false trades using his and others’ trading accounts, with Mr. Neo and Mr. Chang sharing their login credentials.

• Mr. Tan, a trading representative, misled the brokerage firm by falsely claiming that the trades were placed by the account holders. Thus, concealing the true nature of transactions.

MAS has imposed the following civil penalties under relevant sections of the Securities and Futures Act (SFA) and Penal Code, as part of settlement agreements:

• False Trading (Section 197(1)(b) of the SFA): Engaging in deceptive market practices to manipulate share prices.
• Unauthorised Trading (Section 201(b) of the SFA): Conducting trades without proper authorisation, including misuse of trading accounts.
• Abetment (Section 109 of the Penal Code): Misleading brokerage firms and facilitating fraudulent trade execution.

Penalties of each Individual:       

-Mr Aw Yong, $150,000 for abetment of false trading and unauthorised trading;

-Mr Neo, $100,000 for abetment of false trading, abetment of unauthorised trading, and unauthorized trading;

-Mr Chang, $75,000 for abetment of false trading, abetment of unauthorised trading and unauthorised trading;

-Mr Tan, $65,000 for unauthorised trading ; and

-Mr Cheng, $50,000 for unauthorised trading

Conclusion:

MAS continues to enforce strict regulatory standards to maintain fair and transparent financial markets. Companies and individuals must adhere to compliance regulations to prevent unauthorised trading and market manipulation. Financial institutions should strengthen their internal controls to detect and prevent such misconduct.

Source: MAS Statement on Civil Penalty Actions Against Five Individuals for False and Unauthorised Trading.