Two former traders fined, suspended for false trading related to Indonesian tycoon Kris Wiluan

TWO former trading representatives have received civil penalties and were issued prohibition orders (POs) from the Monetary Authority of Singapore (MAS) for false trading.

The traders had executed orders from their client, Indonesian tycoon Kris Wiluan, to purchase shares of now-collapsed oil services firm KS Energy, to create a false or misleading appearance for the counter’s share price.

In a statement on Monday (Apr 25), MAS said Ngin Kim Choo and Yeo Jin Lui, who were employed by CIMB Securities (Singapore) as trading representatives during the offence period, have paid their civil penalties without court action.

Ngin had paid civil penalties of S$100,000 while Yeo paid S$50,000. Ngin was also issued a 5-year PO, while Yeo was issued a 4-year PO, both of which took effect on Apr 25.

The prohibitions under the POs include performing any regulated activity as well as providing any financial advisory service to holders of any capital markets services firm under the Securities and Futures Act.

Earlier in 2021, Wiluan – who was the chief executive of the Singapore-listed KS Energy – had already been fined S$480,000 by the State Courts after he was convicted on 3 counts of market rigging involving the company's shares.

He was previously facing 112 charges related to the violation of Section 197 of the Securities and Futures Act, which covers false trading and market-rigging transactions.

As former trading representatives, Ngin had managed the trading account used by Wiluan, while Yeo managed the account on Ngin’s behalf in her absence.

MAS said Ngin and Yeo had the discretion to manage and advise on the execution of trades to achieve Wiluan’s desired price for KS Energy shares.

Ngin had traded KS Energy shares on 29 occasions between Oct 14, 2015 and Sep 13, 2016, inflating the traded price by at least 5 per cent, while Yeo had traded the shares on 7 occasions between Sep 22, 2015 and Oct 13, 2015, inflating the traded price by at least 5 per cent.

Noting that trading representatives must play their part in helping to safeguard market integrity, Loo Siew Yee, assistant managing director (policy, payments and financial crime) of MAS, said: “The civil penalties and prohibition orders against the 2 individuals reflect MAS’ firm resolve to stamp out such conduct.”

MAS noted that a civil penalty action is not a criminal action and does not attract criminal sanctions.

CIMB Securities is currently known as CGS-CIMB Securities. It was renamed after China Galaxy Securities acquired a 50 per cent stake in the brokerage in 2018.