Witness 'co-ordinated trades in Blumont with another remisier'

Singapore

A FORMER OCBC Securities remisier was accused on Monday of acting with another individual to co-ordinate trades in the Blumont Group, one of three penny stocks said to have been manipulated, sending its price into a spectacular collapse in 2013.

Defence counsel Philip Fong, whose client Quah Su-Ling, 54, is standing trial with co-accused John Soh Chee Wen for allegedly rigging the market of Blumont, Asiasons Capital (now Attilan Group) and LionGold Corporation - collectively known as BAL - drew the attention of the court to a series of trades that then-OCBC Securities remisier Ng Kit Kiat placed on Jan 16, 2013 in Blumont in two accounts at OCBC Securities, after receiving a flurry of phone calls from a number belonging to UOB Kay Hian remisier Alice Ang Cheau Hoon.

The owners of the two accounts for whom Mr Ng helped to place trading orders were not named on Monday; neither was it confirmed that the calls were from Ms Ang.

Mr Ng, who had been with OCBC Securities since 2000 and had notched up more than 40 years of industry experience, resigned last week.

Mr Fong suggested that this prosecution witness had placed the trades in tandem with Ms Ang, who also had executed similar trades at her broking house at about the same time.

Mr Ng acknowledged that the calls from Ms Ang's telephone number were for trading orders, but denied having co-ordinated trades with her.

He also flatly denied having a profit-sharing arrangement with her when questioned by Mr Fong, who told Justice Hoo Sheau Peng that these remisiers' "co-ordinated" trades might have an impact on the price and volume of Blumont.

Mr Fong said: "When all these things are happening, then it will affect the price, and one must take those into consideration when assessing whether the accused persons have themselves committed market manipulation."

Quah and the 59-year-old Soh are accused of conspiring to artificially inflate the market of BAL stocks, the prices of which dived, wiping out S$8 billion in market value in a matter of days in early October 2013.

Mr Ng, who had earlier conceded that he took advantage of his clients' trades by putting in his own orders first, admitted that he had executed trades in his wife's account at OCBC Securities despite being prohibited from being the authorised third person to trade and despite there having been no written authorisation from his wife.

"But it is very common practice in the market now, " he said.

When questioned on the different versions he gave in separate statements, Mr Ng insisted that it was an associate of Soh who had recommended him to Quah. He recalled that the introducer had said Quah was "very pretty"; Mr Ng said he had the same view when he met Quah.

Sitting in the dock not too far from the witness box, Quah smiled faintly when she heard the description.

Cross-examination of Mr Ng by Mr Fong continues on Tuesday.