Logo of Phnom Penh Post newspaper Phnom Penh Post - Singapore court convicts duo in penny stock manipulation case



Singapore court convicts duo in penny stock manipulation case

Content image - Phnom Penh Post
A worker cleans the glass window of the SGX stock exchange building in Singapore. AFP

Singapore court convicts duo in penny stock manipulation case

Two people were found guilty on Thursday of masterminding Singapore’s “most serious case” of market manipulation, wiping S$8.0 billion (US$5.8 billion) in a penny-stocks scam nearly a decade ago.

Malaysian John Soh Chee Wen and Singaporean Quah Su-Ling were convicted of using over 180 trading accounts to inflate the share prices of three companies.

Prosecutors called it the “most serious case” of stock market manipulation in the city-state’s history and detailed how the accused planned a “complex and elaborate fraud” to manipulate the share prices of Blumont Group, Asiasons Capital and LionGold Corp.

Soh and Quah used the shares as collateral, convincing several banks – including Goldman Sachs – to extend more than S$170 million ($123 million) in credit to finance their scheme.

They then used this cash to create demand for penny stocks, reportedly managing to push up some prices by around 800 percent in 2013.

But on October 4, prices crashed, wiping an estimated S$8.0 billion from the Singapore Exchange.

Singapore authorities say the incident dented investor confidence and directly affected trading.

High Court Judge Hoo Sheau Peng convicted Soh of 180 out of 188 charges and Quah of 169 of 177 charges.

The judge said he was “satisfied beyond reasonable doubt that there existed a conspiracy between the two accused persons to manipulate the market” .

Both will be sentenced at a later date. They face multiple years in prison and hefty fines, the police and the central bank said in a joint statement.

Soh has been under remand since the duo was first charged in 2016, while Quah is out on bail.

MOST VIEWED

  • Hong Kong firm done buying Coke Cambodia

    Swire Coca-Cola Ltd, a wholly-owned subsidiary of Hong Kong-listed Swire Pacific Ltd, on November 25 announced that it had completed the acquisition of The Coca-Cola Co’s bottling business in Cambodia, as part of its ambitions to expand into the Southeast Asian market. Swire Coca-Cola affirmed

  • Hun Sen gets Covid, shuns G20, APEC summits

    Prime Minister Hun Sen said he has tested positive for Covid-19 in Indonesia, where he is slated to attend the G20 summit in his capacity of the ASEAN chair. In a social media post addressing the Cambodian public, he said: “Before leaving Cambodia, I always

  • Moody’s sets outlook rating to ‘negative’ for Cambodia

    US global rating agency Moody’s Investors Service Inc on November 15 announced that it downgraded Cambodia’s outlook from “stable” to “negative” and maintained its B2 local and foreign currency issuer ratings. “The negative outlook reflects a deteriorating external position as illustrated by the severe

  • Korean first lady paves way for ill boy’s surgery

    A 14-year-old boy with congenital heart disease who was lucky enough to meet with South Korean first lady Kim Keon-hee may get the chance of a lifetime and receive surgery and treatment at Asan Medical Center in Seoul, South Korea. After seeing his plight, many

  • Hun Sen’s Covid infection caused by ‘weakened antibody’ after summit

    Prime Minister Hun Sen said exhaustion from heavy workload before and during the recent ASEAN Summit may have led to him contracting Covid-19 due to his weakened immune system, while rejecting speculations that the infection was caused by leaders of some countries who did not

  • Kingdom’s rice crowned world’s No1

    Cambodia’s Phka Rumduol jasmine variety has been crowned the World’s Best Rice for the fifth time at the TRT (The Rice Trader) World Rice Conference in Phuket, Thailand on November 17, according to leaders of the Kingdom’s apex rice industry body. Phka Rumduol