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Three charged in 2013 penny stock crash

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by November 26, 2016 General

Singapore: Singapore authorities charged three people yesterday for their alleged role in the city-state’s largest market manipulation case – a penny stocks crash in 2013 – that wiped out billions of dollars in the share prices of three local companies in a few days. Soh Chee Wen, known as John Soh, and Quah Su-Ling were charged for orchestrating a “massive fraud” to manipulate the market in shares of Blumont Group Ltd, Asiasons Capital Ltd and LionGold Corp Ltd between August 2012 and October 2013, Singapore’s Attorney-General’s Chambers, the Commercial Affairs Department (CAD) and the Monetary Authority of Singapore (MAS) said in a joint statement. Soh is a bankrupt Malaysian businessman, while Quah was the chief executive of IPCO International when the offence took place, the statement from the authorities said. “Their unlawful scheme involved exploiting over 180 trading accounts, which they secretly controlled, to create an illusion of liquidity and demand for these shares by making thousands of manipulative trades in each of the three counters, and to control the supply of these shares available to the market so as to influence the price of these counters,” the authorities said. Goh Hin Calm, a key accomplice of Soh and Quah and the senior finance and administration manager of IPCO at that time, was also charged by the authorities. He was offered bail of S$750,000. Quah was offered bail of S$4 million, while Soh was remanded until Dec. 20, when a further mention will be held. Shares in Blumont, LionGold and Asiasons lost more than S$8bn ($5.6bn) in combined market value in a few trading sessions in October 2013 after huge run-ups earlier that year had turned them briefly into billion dollar companies.The rout dented investor confidence in Singapore’s stock market and contributed to a fall in trading volume. Reuters was not immediately able to reach the accused executives for comment.Please enable JavaScript to view the comments powered by Disqus.(c) 2016 Dar Al Sharq Press, Printing & Distribution. All Rights Reserved. Provided by SyndiGate Media Inc. (Syndigate.info)., source Middle East & North African Newspapers

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