Penny-stock crash case to proceed to trial

Singapore

THE October 2013 penny stock crash case will go to trial before the High Court following a three-day committal hearing that ended on Friday.

Assistant registrar James Elisha Lee ruled that there are sufficient grounds to try John Soh Chee Wen, Quah Su-Ling and Goh Hin Calm for their roles in the crash, which triggered massive selloffs among penny stocks and wiped out a total of S$8 billion from the stock market.

Soh faces 189 charges of manipulating stocks of Blumont Group, Asiasons Capital Limited and LionGold Corp Ltd - collectively known as BAL - and tampering with witnesses. Quah faces 178 charges of manipulation, and Goh, six charges of aiding the pair.

From Wednesday through Friday this week, the witnesses included executives from financial institutions (FIs) where the controlled accounts were opened, and trading representatives linked to the accused. Altogether, 13 people took the stand, testifying on subjects such as "wash trading" and enfo…