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(WARNING) Caught For Insider Trading

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Old 11-07-2019, 10:28 AM   #1
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(WARNING) Caught For Insider Trading

Finally the law caught them even it happened between 2007 to 2014.

IT at that time (2007) was not so advance but the authority still managed to nap them.

Here ish the full article from the ST dated JUL 10, 2019.

SINGAPORE - Three men who ran an illegal share trading scheme that netted them more than $2 million each have been jailed for terms ranging from 20 months to three years.

The men - Leong Chee Wai, Toh Chew Leong and Simon E Seck Peng - pleaded guilty to more than 100 charges involving a process called "front-running".

This occurs when a broker uses advance information of pending share orders to then place buy or sell trades through his personal account with the aim of benefiting once the stock price moves.

This is the first front-running case prosecuted as an insider trading offence, which attracts a heavier punishment, in part due to the involvement of price-sensitive information.

The case centred on offences committed between 2007 and 2014 involving around 40 Singapore-listed companies, including Ascendas Real Estate Investment Trust, CapitaMalls Asia and Global Logistic Properties. Foreign-listed counters were targeted as well.

Leong, 50, was a senior equity dealer in First State Investments Singapore (FSIS) in March 2007 when he entered into an agreement with E, 50, to profit from confidential information he had about orders that FSIS intended to make.

His job included executing trading orders placed by FSIS's portfolio managers.

Facade of the Monetary Authority of Singapore building at 10 Shenton Way.
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3 men face 300 charges over insider trading
E would use his personal trading account with UOB Kay Hian to place orders, usually ahead of the FSIS trades being lodged.

Once the share price started to rise in the wake of the usually sizeable FSIS trades, E would offload his stock to reap a profit.

The money was then split equally between the pair.

Toh, 43, also a senior equity dealer at FSIS, joined the pair in their scheme in August 2008 and received an equal cut of the profits.

Deputy Public Prosecutor Hon Yi told the court on Wednesday (July 10) that the activities went on for seven years without detection.

DPP Hon also noted that Leong and Toh had possessed information on FSIS orders that was not generally available, such as the size and price range.

"The information... would be expected... to be profitable if the person had traded on (it)," he said.

"The information, taken with the fact that FSIS's orders were usually substantial, would have a material effect on the price of the shares."

All three were found guilty of offences under the Securities and Futures Act.

Leong was sentenced to three years' jail, E for 30 months and Toh for 20 months.

The terms took into account the different amounts of the gains they have returned and the amount of time they participated in the scheme.

Defence lawyer Thong Chee Kun of Rajah & Tann said front-running, unlike insider trading, does not necessarily affect the inherent value of an equity and should be less reprehensible.

He added that there was "no guarantee of profit" in this case or evidence of adverse market distortion caused at the expense of other investors.

Principal District Judge Ong Hian Sun said in sentencing that he agreed with the prosecution that general deterrence was needed to maintain the integrity of the trading system. He also considered the huge profits that were made.

Leong and E reaped about $2.6 million each, while Toh made around $2.3 million.

https://www.straitstimes.com/singapo...e-trading-case
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Old 11-07-2019, 11:12 AM   #2
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Bloody farkers.......
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Old 11-07-2019, 11:19 AM   #3
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S$2+ millions for 2.5 yrs jail worth it.
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Old 11-07-2019, 01:04 PM   #4
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Jail term should commensurate with seriousness of crime and sum involved. 2cent.
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Old 11-07-2019, 01:09 PM   #5
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If they are smart, they will shift their profit offshore.
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Old 11-07-2019, 01:41 PM   #6
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Since he got sensitive info, Why cant he advise his partner outside to buy instead? Can just tell him/her today durian dropping. Buy 50. Like tat nobody know its insider trading mah.
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Old 11-07-2019, 03:24 PM   #7
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No more Insider trading because of jail & fine?
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Old 11-07-2019, 05:07 PM   #8
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S$2+ millions for 2.5 yrs jail worth it.
Agreed! At least these guys are smart.

a lot of people commit fraud for under $1mil... and get caught..
sibei kumlan.
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Old 11-07-2019, 05:09 PM   #9
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Since he got sensitive info, Why cant he advise his partner outside to buy instead? Can just tell him/her today durian dropping. Buy 50. Like tat nobody know its insider trading mah.
Ya... smart but not very smart...

want to commit fraud also didn't go google how to do it as secretive as possible.

Never do enough research and homework.

The dead giveaway is he trades his own acccount right? and then ask people directly related to you (1st degree of network) to trade also..
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Old 11-07-2019, 08:11 PM   #10
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Since he got sensitive info, Why cant he advise his partner outside to buy instead? Can just tell him/her today durian dropping. Buy 50. Like tat nobody know its insider trading mah.
chiu should not had asked this if chiu had read the whole news article.

The mastermind DID NOT buy using his own trading ac.

He inform his partners in crime to buy be4 his company place the huge orders.

not sure why the relevant authorities took so long (crime committed from 2007 to 2014 ) to nap him and his accomplices.
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Old 11-07-2019, 08:23 PM   #11
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Jail term should commensurate with seriousness of crime and sum involved. 2cent.
agreed with chiu view in general.

the 3 guys did was not really cheating or scamming others but benefited from the information (XXX fund buying big qty of xyz stock) they were given.

it ish common knowledge that if some big player(s) buying up a stock, the price most likely will go up.

so technically they did no wrong (buy be4 big boy buy) but the authorities think other wise cos the trio had the prior information advantage.
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Old 11-07-2019, 09:38 PM   #12
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The article indicated that the jail term is decided based on the amount they have returned. They could be going to jail with no money left. After paying the lawyers plus the number of years the crime occurred I doubt there are much left of the money they have makan. It definitely is not that they will enjoy 2mil after jail.

S$2+ millions for 2.5 yrs jail worth it.

Last edited by Slowdown; 11-07-2019 at 09:43 PM..
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Old 11-07-2019, 09:55 PM   #13
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Technically the defence lawyer is right. This is more of front running than insider trading. Subtle difference.
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Old 11-07-2019, 10:07 PM   #14
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The article indicated that the jail term is decided based on the amount they have returned. They could be going to jail with no money left. After paying the lawyers plus the number of years the crime occurred I doubt there are much left of the money they have makan. It definitely is not that they will enjoy 2mil after jail.
moi can never forget how the former income tax dept clerk Loke F C hide all her ill gotten money : she pocketed those money suppose to be refund to companies who over pay their tax and was jailed for a few yr.

she claim she lost all her money in Genting casino (long be4 Sg IR open) after go up there a few times. Last time there was no computer or cctv, so the judge had to take what she claimed as true.
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Old 11-07-2019, 10:10 PM   #15
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Technically the defence lawyer is right. This is more of front running than insider trading. Subtle difference.
fully agreed with this.

cos big boy buying no guarantee the share prices will up.
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