The Monetary Authority of Singapore reported that 4 individuals have been sentenced to prison for engaging in false trading in the stocks of Catalist-listed company, Koyo International Limited. Additionally, they deceived multiple brokerage firms by using unauthorized trading accounts.
Mr. Ang, Ms. Koh, Mr. Lin, and Mr. Chong were found guilty and given prison sentences.
The 4 individuals were the final ones out of eight who were found guilty by the court for being part of a plan to fake the price of Koyo shares. From August 2014 to January 2016, Mr. Lin and 7 others took control of 53 trading accounts. Belonging to 15 different individuals. They manipulated the buying and selling of Koyo shares, gradually increasing the prices. Their goal was to entice a buyer into acquiring the company through a reverse takeover.
During this time, the price of Koyo shares went up from a low of $0.16 on August 12, 2014, to a high of $0.40 on January 14, 2016. However, it suddenly dropped to $0.056 on January 18, 2016, after the Singapore Exchange Securities Trading Limited (SGX-ST) warned about unusual trading activities. And some brokerages imposed trading restrictions. As a result, account holders lost around $3.28 million, with $1.05 million being covered by the brokerages and remisiers.
The 4 individuals admitted their guilt and received the following sentences:
- Mr. Ang Wei Jie Simon: 13 months in jail
- Ms. Koh Cheo Leng: 19 weeks in jail
- Mr. Lin Eng Jue: 42 months in jail
- Mr. Chong Yew Mun Alan: 11 weeks in jail
Read more: ESMA deems Spain’s CFD | Brokers Times
