Man charged for attempted market manipulation via Telegram

A MAN has been charged under the Securities and Futures Act (SFA) for fraudulently inducing others to deal in shares using Telegram, announced the Monetary Authority of Singapore (MAS) on Wednesday (Feb 9).

Kenneth Goh Jia Poh allegedly made false statements in 2 Telegram chat groups to induce others to trade in multiple securities on the Singapore Exchange (SGX) between July and August 2020.

He is also accused of engaging in a conspiracy with another person to make similar false statements in the same chat groups. MAS said its investigation into the second person is ongoing.

Goh faces a total of 2 charges under section 200(1)(a) of the SFA for the offences.

This comes on top of 2 amalgamated charges under section 197(1)(b) and 4 more under section 201(b) of the SFA, which were imposed on Goh in April 2021.

According to the charges previously announced by MAS, Goh was accused of false trading on the SGX for trades which took place between Jan 6, 2016 and Sep 20, 2018. Investigations found that he had used various trading accounts - including 4 which did not belong to him - without duly notifying the relevant brokerages.

All charges including the latest ones under Section 200(1)(a) of the SFA carry an imprisonment term of up to 7 years or a fine of up to S$250,000, or both.

In view of the 2 new charges, Goh's bail was increased to S$80,000 from S$70,000 previously. The next hearing is scheduled in a pre-trial conference on Feb 23.

The investigations were jointly conducted by MAS and the Commercial Affairs Department of the Singapore Police Force.

Singapore Exchange Regulation (SGX RegCo) had separately warned in December 2020 of possible market misconduct activities which make use of Telegram chat groups and other social media channels to engage in "pump and dump" schemes.

Wrongdoers - working alone or in groups - would typically use channels such as Telegram chats to encourage other members to trade a particular security. As more members in the group do so, the share price goes up, and wrongdoers would then sell the shares bought earlier for a profit.

SGX RegCo had said: "Investors should always conduct their own due diligence and research on any potential investments. This should never be substituted with information obtained on social media."

READ MORE:

• Social media exploited for 'pump and dump' activities: SGX RegCo
• MAS and SGX RegCo flag risks linked to trading incited by online discussion forums