MAS imposes S$137,000 fine on Alpha Energy’s ex-managing director for insider trading

[SINGAPORE] The Monetary Authority of Singapore (MAS) and the Singapore Police Force (SPF) have imposed a civil penalty of S$137,000 on Ang Yew Jin Eugene for insider trading of Alpha Energy Holdings’ shares, a joint statement indicated on Monday (Nov 17).

The former group managing director admitted to contravening the insider trading provision under section 218(2)(a) of the Securities and Futures Act (SFA). Ang has also paid MAS the civil penalty without court action.

On Nov 18, 2019, the group said that a creditor had declared the entire principal sum of US$64 million owed by Alpha Energy as immediately due and payable, following the company’s default in the partial repayment of a loan.

The principal sum demanded by the creditor represented around ten times the value of current assets held by the company as of Jun, 30 2019. Trading of Alpha Energy’s shares were immediately suspended post-announcement.

Ang had sold 2,413,300 Alpha Energy shares on Nov 13, 2019, held in his parents’ trading accounts while in possession of such “non-public, material information”, the release indicated.

His parents therefore avoided losses of around S$54,900, due to the sale of shares ahead of the news.

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At the time, Ang was a non-executive director of the group. “By virtue of his position, he knew of the group’s failure to make repayment,” MAS and the SPF said in a joint statement.

“Further, Ang knew that in accordance with the loan agreement, the creditor had a right to demand immediate payment of the entire principal sum when the group defaulted on its repayment.”

At this juncture, Ang has also given a voluntary undertaking not to be a director or be involved in the management of a company for two years, with the exception of any company that may be excluded with MAS’ consent.