Trader gets $100,000 penalty for false trading with 'wash trades'

THE Monetary Authority of Singapore (MAS) has obtained a default judgement of $100,000 against Ong Beng Hock for false trading and market manipulation.

On Dec 29, 2006 and April 26, 2007, Mr Ong executed a total of 12 wash trades in two of his trading accounts. These were purchases and sales of shares of Ipco International Ltd and Goldtron Ltd which did not involve any change in beneficial ownership.

The case for MAS was that the wash trades were intended or likely to create a false or misleading appearance with respect to the market for, or the price of, the shares in the two corporations.