The Monetary Authority of Singapore (MAS) has imposed a civil penalty of S$350,000 on Mr Gui Boon Sui @ Goi Chon Yan (Mr Gui) for falsely trading in the shares of Hiap Hoe Limited (HHL) and Hotel Grand Central Limited (HGC), and trading using the accounts of other persons without the authorisation of the brokerage firms.
Between December 2018 and August 2022, Mr Gui purchased shares in HHL and HGC for the purpose of artificially inflating the shares’ closing prices. In addition to carrying out such trades in his own trading accounts, Mr Gui used trading accounts belonging to two of his employees to conduct unauthorised purchases of HHL and HGC shares for the same purpose.
Mr Gui artificially inflated the closing prices of HHL and HGC shares on 554 days and 56 days respectively in the said period.
Mr Gui has admitted to contravening section 197(1)(b) and section 201(b) of the Securities and Futures Act and will pay MAS the civil penalty without court action. Mr Gui has also given an undertaking not to be a company director or be involved in the management of a company for a period of two years.
The civil penalty action is the result of a joint investigation conducted by the Commercial Affairs Department of the Singapore Police Force and MAS, following a referral from the Singapore Exchange Regulation Private Limited.
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Additional information
(A) The civil penalty regime
A civil penalty action is not a criminal action and does not attract criminal sanctions. The civil penalty regime, designed to complement criminal sanctions and provide a nuanced approach to combat market misconduct, became operational at the beginning of 2004.
Under section 232 of the SFA, MAS may enter into an agreement with any person for that person to pay, with or without admission of liability, a civil penalty for contravening any provision of Part 12 of the SFA. The civil penalty may be up to three times the amount of the profit gained or loss avoided by that person as a result of the contravention, subject to a minimum of $50,000 (if the person is not a corporation) or $100,000 (if the person is a corporation).
(B) Section 197(1)(b) of the SFA at the time of the offences
Under section 197(1)(b) of the SFA, no person shall do any thing, cause any thing to be done or engage in any course of conduct, if his purpose, or any of his purposes, for doing that thing, causing that thing to be done or engaging in that course of conduct, as the case may be, is to create a false or misleading appearance with respect to the price of such securities.
(C) Section 201(b) of the SFA at the time of the offences
Under section 201(b) of the SFA, no person shall, directly or indirectly, in connection with the subscription, purchase or sale of any securities engage in any act, practice or course of business which operates as a fraud or deception, or is likely to operate as a fraud or deception, upon any person.
SINGAPORE POLICE FORCE
13 January 2025 @ 2:00 PM