Penny stock crash mastermind Soh and Quah found guilty of most charges

AFTER a trial spanning 194 hearing days, Justice Hoo Sheau Peng has found penny-stock crash masterminds John Soh Chee Wen and Quah Su Ling guilty of all the market manipulation and cheating charges laid before them. Both were acquitted of 8 charges of deception.

The case, which the prosecution called the "most serious case" of stock market manipulation in Singapore, commenced on Mar 25, 2019; closing submissions were heard on Dec 3, 2021.

Separately, Soh was found guilty of the 7 witness-tampering charges involving prosecution witnesses Ken Tai, Leroy Lau and Gabriel Gan, among others. Soh was also found guilty of charges of being involved with management at Blumont, Asiasons and Liongold while being an undischarged bankrupt. He was found guilty of 180 of 188 charges faced; Quah was convicted of 169 of the 177 charges faced.

In a lengthy oral judgement, Justice Hoo laid out her grounds for the verdict, finding that the evidence raised by the prosecution satisfied beyond reasonable doubt that Soh and Quah were guilty of the share manipulation and cheating charges. For instance, the pattern of trading for Asiasons shares on Oct 2, 2013 and Oct 3, 2013, according to the prosecution's expert witness Professor Michael James Aitken, was contrary to behaviour of a genuine buyer. If the persons behind the account wanted to pick up Asiasons shares, they would have put themselves in a queue and wait for their bids to be hit. "Thus, he suggested that the manner in which they placed their orders - closing the bid-ask spread - was not rational in the circumstances," said Justice Hoo.

Justice Hoo acquitted Soh and Quah on the 8 charges of deception based on evidence by prosecution witness Cheng Jo-ee, who said that the accounts referenced in the charges were under her own control. These charges were in relation to Cheng's personal accounts in CIMB Securities, Goldman Sachs and Credit Suisse.

Soh's defence counsel and Quah had suggested that the prosecution had evolved the case and crept into the realm of illogicality, leaving the defence with a case supposedly impossible to answer. Quah had, in her closing statements, alleged that the prosecution’s conduct was inappropriate; she said the team had failed to disclose material evidence, coached witnesses, and even induced witnesses to provide evidence favourable to the prosecution. But Justice Hoo said: "[These allegations] distract from the substantive issues to be determined, and they have the potential to cast doubt on the fair administration of justice. In relation to these suggestions and allegations, I take this opportunity to dismiss them as entirely unmeritorious."

The Singapore Police Force and Monetary Authority of Singapore said in a joint statement that Soh and Quah had used 187 trading accounts belonging to 58 individuals and corporate nominees to make thousands of trades in shares of Blumont, Asiasons and LionGold. The trades generated artificial liquidity and demand for these shares, and caused their prices to rise over time.

During investigations, the authorities raided over 50 locations and interviewed more than 70 persons. They sifted through more than 2 million emails, half a million trade orders as well as thousands of telephone records and financial statements.

Soh and Quah could face imprisonment of up to 7 years, a fine of S$250,000 or both, for each of the 163 charges related to market manipulation and deception. For each of the 6 charges of cheating, the duo could face imprisonment of up 10 years and a fine. In addition, Soh could face imprisonment of up to 7 years, a fine or both for each of the 8 witness tampering charges of which he was found guilty. He could also face imprisonment for up to 2 years, a fine of S$10,000 or both for each of 3 charges of managing a company while being an undischarged bankrupt.

The duo's sentencing will take place at a later date.