The former Chief Executive Officer (“CEO”) of Oriental Group Limited (“Oriental Group”) and ten other individuals have been charged with offences under the Securities and Futures Act (“SFA”) and Penal Code (“PC”). Oriental Group was previously listed on the Catalist board of the Singapore Exchange.
The former CEO was charged on 4 December 2021 with an offence under Section 408 PC for allegedly misappropriating a sum of $500,000 entrusted to him in his capacity as CEO of Oriental Group between November 2014 and August 2015. The former CEO left Singapore prior to the commencement of investigations and was arrested in Malaysia on 1 December 2021 with assistance from the Royal Malaysia Police. Investigations against the former CEO are ongoing.
The other ten individuals who were charged include the former Group Financial Controller, former Finance Manager and a former substantial shareholder of Oriental Group. These three individuals were charged on 10 December 2021 for allegedly conspiring with various persons to engage in a course of conduct for the purpose of creating a false appearance of Oriental Group’s share price between April 2015 and January 2016. The alleged impugned trades were placed through at least 52 trading accounts. Separately, the former Group Financial Controller was also charged for allegedly instigating a former employee of Oriental Group to forge a document for the purpose of cheating. Details of the charges faced by the three individuals are as follows:
Against the former Group Financial Controller
- One count of Section 197(1)(b) SFA read with Section 109 PC;
- Four counts of Section 201(b) SFA read with Section 109 PC; and
- One count of Section 468 read with Section 109 PC.
Against the former Finance Manager
- One count of Section 197(1)(b) SFA read with Section 109 PC; and
- 23 counts of Section 201(b) SFA read with Section 109 PC.
Against the former substantial shareholder
- One count of Section 197(1)(b) SFA read with Section 109 PC; and
- Two counts of Section 201(b) SFA read with Section 109 PC.
The remaining seven individuals, consisting of a woman and six men, aged between 41 and 74, were charged on 23 December 2021 with one to eight counts of Section 201(b) SFA read with Section 109 PC each. They are alleged to have placed orders in Oriental Group’s shares in their accounts under the instructions of the former CEO, without the authorisation of the respective brokerage firms, thereby engaging in practices which were likely to operate as deceptions on these brokerage firms.
If convicted, the accused persons face:
- Imprisonment of up to 15 years, and shall also be liable to fine, on each Section 408 PC charge.
- Imprisonment of up to 10 years, and shall also be liable to fine, on each Section 468 PC charge; and
- Imprisonment of up to seven years, a fine not exceeding $250,000, or both, on each SFA charge.
SINGAPORE POLICE FORCE
23 December 2021 @ 11:25 AM