Goh Hanshi Justin and three other individuals were charged on 26 March 2020 for offences under the Securities and Futures Act (SFA) and the Penal Code (PC). Goh was a retail investor while the three individuals were trading representatives of Lim & Tan Securities Pte Ltd and RHB Securities Singapore Pte Ltd (formerly known as DMG & Partners Securities Pte Ltd).
According to investigations by the Commercial Affairs Department, Goh was the mastermind behind a scheme to manipulate the price of shares of Sky One Holdings Limited (Skyone). He achieved this by controlling the orders and trades in Skyone shares through 27 different trading accounts belonging to third parties between 18 September 2013 and 28 October 2013. Of these 27 trading accounts, 15 were procured with help from the three former trading representatives.
Investigations also revealed that in order to secure a higher limit to trade in Skyone shares, Goh nominated three individuals to receive Skyone shares and pledge them as collateral with two banks, The Bank of East Asia and Malayan Banking Berhad, under share financing facilities granted by the banks. Deceived into believing these Skyone shares were beneficially owned by the account holders, the two banks were dishonestly induced into disbursing more than S$2.2 million for the purchase of Skyone shares.
For manipulating the price of Skyone shares, Goh faces one count of Section 197(1)(b), SFA. Goh faces another 27 counts of Section 201(b), SFA for conducting unauthorised trades in trading accounts belonging to third parties. Goh was also charged with five counts of Section 420, PC for cheating the two banks into disbursing funds for the purchase of Skyone shares.
For allowing Goh to conduct orders and trades for Goh’s own benefit in trading accounts belonging to third parties, the three former trading representatives were charged with 15 counts of unauthorised trading under Section 201(b), SFA.
If convicted, the four men are liable to face the following punishment:
a) For each charge of cheating under Section 420, PC: a jail term of up to 10 years and a fine;
b) For each charge of false trading under Section 197, SFA: a jail term of to 7 years, a fine of up to S$250,000, or both; and
c) For each charge of unauthorised trading under Section 201, SFA: a jail term of to 7 years, a fine of up to S$250,000, or both.
SINGAPORE POLICE FORCE
26 March 2020 @ 3:30 PM