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Ex-remisier charged under Securities and Futures Act for fraud

A FORMER remisier has been charged with defrauding under the Securities and Futures Act - the first prosecution case by the Monetary Authority of Singapore (MAS) under the MAS-CAD (Commercial Affairs Department) joint investigation regime.

Malaysian Dennis Tey Thean Yan, 32, was on Friday charged with 18 counts under Section 201(a) of the Act.

He allegedly defrauded via market manipulation in 11 stocks provided by IG Asia Pte Ltd between October 2012 and January 2013.

The 11 securities mentioned in court documents are: Asia Power Corp, China Aviation Oil, China Energy, China Flexible Packaging Holdings, Delong Holdings, Full Apex Holdings, Li Heng Chemical Fibre Tech, Pan Hong Property Group, Sinostar Pec Holdings, Samudera Shipping Line and World Precision Machinery.

Tey is accused of entering fraudulent orders in these securities so as to artifically increase their best bid prices or lowering their best ask prices.

Court documents said this is so he could buy or sell the contracts for differences at the artificially raised or lowered prices.

He is also accused of deleting the fraudulent orders in the securities after the purchase or sale of the contracts for differences.

The remaining seven charges state that Tey allegedly carried out similar market manipulation in seven securities provided by CMC Markets Pte Ltd.

The seven securities are: Bund Center Investment, China XLX Fertilizer, ECS Holdings, Guocoland, Manhattan Resources, Pacific Century and World Precision Machinery.

Tey faces a further five charges under Section 201(b) of the Act where he is accused of deceiving four firms - CMC Markets Singapore, IG Asia, DBS Vickers Securities and DMG & Partners Securities - by using the accounts of four individuals to buy and sell shares without authorisation between October 2012 and January 2013.

The maximum punishment on each charge is a fine of S$250,000 or jail term of seven years, or both.