A 49-year-old male Singaporean, who is an accounts manager with an international lubricant and fuel additives company, was charged on 5 August 2020 for offences under the Securities and Futures Act (SFA), Chapter 289.
Between 5 April 2018 and 14 December 2018, the man executed 60 Contract for Differences (“CFD”) trades with City Index Asia Pte Ltd (“City Index”), a company providing CFD and forex trading services. The prices of these CFDs were determined by City Index based on the real-time quotes of three securities listed on the Mainboard of the Singapore Exchange (“the Underlying Securities”).
Prior to each of his CFD trades, the man entered buy or sell orders in the stock market for the Underlying Securities. The orders were meant to temporarily inflate or deflate the prices of the Underlying Securities and accordingly, the prices of CFDs. In so doing, the man was able to profit by purchasing and selling the CFDs from City Index at artificially induced prices.
Apart than his own trading account, the man is alleged to have used the City Index trading accounts belonging to three other individuals without authorisation, to conduct his CFD trades.
The man faces 60 counts under Section 201(a) of the SFA for employing a scheme to defraud City Index. He faces another three counts under Section 201(b) of the SFA for conducting trades using third parties’ trading accounts.
If convicted, he faces imprisonment of up to seven years, or a fine of up to S$250,000, or both, for each charge under Section 201 of the SFA.
SINGAPORE POLICE FORCE
06 August 2020 @ 7:15 PM