4 people prohibited from providing financial advisory services after false trading of Koyo International shares

SINGAPORE: The Monetary Authority of Singapore (MAS) on Wednesday (Mar 3) said it has prohibited four people from providing any financial advisory services after their convictions over a false trading scheme.

They are: Lau Wan Heng, a former remisier of CGS-CIMB Securities (Singapore); Yeo An Lun, a former representative of Prudential Assurance Company Singapore; Rayson Goh Qi Rui, a former remisier of OCBC Securities; and Teo Boon Cheang, a former remisier of KGI Securities (Singapore).

The four are among eight people charged in relation to a false trading scheme involving shares of Koyo International, an engineering service provider that is listed on the Catalist board of the Singapore Exchange (SGX).

Court proceedings against the other four people are ongoing, said MAS.

REMISIER HELPED CREATE FALSE APPEARANCE OF ACTIVE TRADING

Between February 2015 and January 2016, Lau helped to create a false appearance of active trading in Koyo shares by carrying out trades in her clients' accounts on the instructions of Lin Eng Jue, said MAS.

When CIMB restricted the trading limits of the clients' accounts, Lau convinced the clients to open or reactivate trading accounts with other brokerage firms on the pretext that she was leaving CIMB to join those firms.

"She then handed control of some of these accounts to other persons to place trades in Koyo shares. She also allowed others to use her relatives' accounts to place trades in Koyo shares," said MAS.

Lau pleaded guilty and was convicted of one count of false trading and 12 counts of unauthorised trading. Her remaining charges were taken into consideration for sentencing. She was sentenced to 20 years and 18 weeks imprisonment.

She was also handed a 10-year prohibition order by MAS.

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Yeo and Goh were convicted of false trading and unauthorised trading charges. Yeo handed over his trading accounts to Lin to trade Koyo shares between August 2014 and January 2016, while Goh carried out trades in his clients' accounts on Lin's instructions between March 2015 and January 2016.

Teo assisted in the scheme by placing orders in his KGI trading account on Lin's instructions between September 2015 and January 2016, and was convicted of intentionally aiding Lin to control the trading in Koyo shares for the purpose of creating a false appearance regarding the price of the shares.

The three men pleaded guilty. Yeo was sentenced to 26 weeks' imprisonment, Goh to four months' imprisonment and Teo to three months' imprisonment.

Yeo, Goh and Teo were handed prohibition orders of six years, five years and four years respectively by MAS.

Besides being banned from providing any financial advisory service, all four are also prohibited from taking part in the management, acting as a director or becoming a substantial shareholder of any licensed financial adviser under the Financial Advisers Act, said MAS.

Lau, Goh and Teo are also prohibited from such positions in any capital market services licensee under the Securities and Futures Act.

The prohibition orders took effect from Mar 1, 2021.

Lin is facing a total of 50 charges, including one count of false trading and 49 counts of unauthorised trading. Court proceedings against Lin are ongoing.

MAS expects representatives of financial institutions to act with honesty and integrity, said Ms Loo Siew Yee, MAS' assistant managing director for policy, payments and financial crime.

"By being involved in the false trading scheme, the former financial representatives abused the trust of their customers or employers for personal gain. Their actions also resulted in the distortion of the market," added Ms Loo.

"MAS does not tolerate such misconduct and will take firm action to keep such offenders out of the financial industry. MAS will continue to work closely with other authorities and stakeholders to keep our financial markets fair and orderly."