Two individuals convicted of insider trading in shares of Broadway Industrial Group

TAY Yew Khem and Hui Choy Leng have been convicted of insider trading in the shares of mainboard-listed Broadway Industrial Group, among other offences.

Tay was sentenced to 12 weeks’ imprisonment, and Hui, four months. Other charges the pair faced under the Securities and Futures Act and the Corruption, Drug Trafficking and Other Serious Crimes (Confiscation of Benefits) Act were taken into consideration for sentencing.

In July and August 2016, the pair received non-public and material information about Broadway’s impending sale of its businesses from the company’s then-chief financial officer, Tan Chee Keong.

They then bought shares in the company, ahead of its Aug 22, 2016, announcement of its entry into a conditional sale-and-purchase agreement for two of its businesses. 

Following the announcement, Tay and Hui sold their shares in the company. Tay made a profit of S$43,377, and Hui, S$77,906.

Broadway’s Tan received S$30,000 from Tay under an agreement between them to share the profits.

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Tan was convicted and sentenced to three months and two weeks’ imprisonment in June last year.

All profits the trio made from the trading and the sharing of insider information have been paid in full to the state, said the Monetary Authority of Singapore (MAS) in a statement on Friday (Apr 14).

MAS said the investigations against Tay and Hui arose from a referral by the Singapore Exchange Securities Trading.