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Sinopipe CEO to step down after insider trading at Sinomem
SINOPIPE Holdings said on Wednesday its chief executive Pu Weidong is due to step down, after he was rapped for insider trading in shares of a separate company.
The Monetary Authority of Singapore (MAS) on Tuesday said that it has taken civil penalty action against Pu Weidong and Triumpus Assets Management Pte Ltd for insider trading in the shares of Sinomem Technology. They will pay S$316,000 as a civil penalty.
Mr Pu, the sole shareholder of Triumpus, was the chief financial officer of Sinomem in 2009. Between March 2 and March 27, 2009, Mr Pu and Triumpus bought 4.6 million Sinomem shares when Mr Pu possessed confidential price-sensitive information concerning a proposed share buyback offer by Sinomem, MAS said. The share buyback offer was announced on March 27, 2009, and the insider trade translated into a profit of S$49,542.
In the same year, between Aug 25 and and Aug 31, Mr Pu and Triumpus separately sold 14.2 million Sinomem shares when Mr Pu possessed knowledge of confidential, price-sensitive information on a proposed placement of shares by Sinomem. The share placement was made public on Sept 9, 2009. No profit or loss was made on these trades.
Mr Pu and Triumpus have admitted to contravening sections of the Securities and Futures Act. On top of the civil penalty of S$316,000, Mr Pu and Triumpus must pay S$61,610.75 for the legal costs and disbursements incurred by MAS for the civil penalty action.
Mr Pu will not be a company director or be involved in the management of a company for a period of one year from July 3, 2016.
"The board will make the necessary arrangement after Mr Pu steps down from his appointment as chief executive officer and executive director of the company," Sinopipe said.
Trading in the shares of Sinopipe has been suspended since April 2, 2012.