THE Monetary Authority of Singapore (MAS) has charged two dealers in First State Investments Singapore (FSI) and a remisier with UOB Kay Hian in its first "front running" case of alleged insider trading.
The move also marks the second MAS-led criminal prosecution since the joint investigation by the regulator and the Commercial Affairs Department regime came into effect last year.
The three Singaporean individuals, FSI dealers Leong Chee Wai and Toh Chew Leong and UOB Kay Hian remisier E Seck Peng Simon, were charged with 115, 111 and 107 offences respectively under the Securities and Futures Act, which involved 49 Singapore-listed counters including Allgreen Properties, CapitaLand, City Developments, DBS Group and Keppel Corp. They also involved 51 counters listed abroad including in Australia, Taiwan, Malaysia and Hong Kong.
Under the first charge, Leong, 47, was charged with allegedly procuring Simon to purchase 548,000 and short sell 290,000 Allgreen shares between July 4, 2007, and Feb 21, 2008, through his personal trading account in UOB Kay Hian, based on price-sensitive inside information that Leong possessed on FSI's intended trades on the counter and before the fund manager had completed its intended order.
Under another charge, Leong is alleged to have conspired with Toh to procure Simon to purchase 743,000 and short sell 2.23 million Allgreen shares through the same trading account on or before Aug 28, 2008, to Aug 17, 2009, by providing Simon with inside information on FSI's intended trades in the counter.
Bail amounts were fixed at S$300,000, S$250,000 and S$300,000 for Leong, Toh and Simon respectively.