On 19 May 2021, former Chief Executive officer (CEO) and Chairman of KS Energy Limited (KSE), which is listed on the Mainboard of the Singapore Exchange, was convicted and sentenced for market rigging offences under the Securities and Futures Act, Chapter 289 (SFA).
Between 19 December 2014 and 13 September 2016, the 72-year-old man gave instructions on certain trading days to purchase KSE shares for the purpose of pushing up the price of KSE shares. His trade instructions were given either personally or through his manager, a 56-year-old woman, at his family office to trading representatives in CIMB Securities (Singapore) Pte Ltd.
To achieve his target price, buy orders in the last 15 minutes of trading and during the closing routine were placed to set the closing price of KSE shares in a practice commonly known as “marking the close”. Buy orders were also placed at several bids above the last done price, instead of at the most competitive prices and at the minimum trading size, in order to increase KSE share price at the lowest possible cost.
The accused was initially charged on 5 August 2020 for 112 counts of Section 197(1)(b) of the SFA for giving instructions to push up or maintain the price of KSE shares on 112 trading days between 19 December 2014 and 13 September 2016. These charges were subsequently amended to six amalgamated charges under Section 197(1)(b) of the SFA covering the same 112 trading days. He pleaded guilty to three charges on 19 May 2021 and was sentenced to a fine of S$480,000. Three remaining similar charges were taken into consideration for the purpose of sentencing. The offence for each charge under Section 197(1)(b) of the SFA carries an imprisonment of up to seven years, a fine of up to S$250,000, or both.
A stern warning, in lieu of prosecution, has been administered against the manager for intentionally aiding the accused with the market rigging.
SINGAPORE POLICE FORCE
19 May 2021 @ 3:30 PM