MAS issues Prohibition Orders against Mr Lee Chang Yeh Bentley for fraudulent and dishonest conduct
Singapore, 30 August 2018… The Monetary Authority of Singapore (MAS) has issued 12-year prohibition orders against Mr Lee Chang Yeh Bentley, under the Securities and Futures Act (SFA) and the Financial Advisers Act (FAA).
2 The orders prohibit him from performing any regulated activity under the SFA and any financial advisory service under the FAA. Mr Lee is also prohibited from taking part in the management, acting as a director or becoming a substantial shareholder of any capital market services firm under the SFA and any financial advisory firm under the FAA.
3 Mr Lee was a representative of CIMB Bank Berhad, Singapore (CIMB) from September 2013 to July 2014. Before that, he had been employed by United Overseas Bank (UOB) from August 2005 to January 2010. While at UOB, he had set up a company to invest in shares and foreign-exchange on behalf of other investors, without holding a Capital Markets Services licence, and later left UOB to manage his company full time. From May 2009 to January 2013, in the course of carrying out his fund management business, Mr Lee misappropriated approximately S$520,000 from the monies entrusted to him by clients whom he had served whilst with UOB.
4 For committing criminal breach of trust in contravention of Section 409 of the Penal Code, as well as conducting regulated activities without a licence in contravention of Section 82(1) of the SFA, Mr Lee was sentenced by the State Courts in November 2017 to 4 years and 9 months’ imprisonment, and a fine of S$50,000.
5 Mr Lee Boon Ngiap, Assistant Managing Director (Capital Markets), MAS, said: “Finance professionals must conduct themselves honestly in the course of their work, since they are very often entrusted to handle customers’ monies and assets. MAS will not hesitate to take firm action against those who fall short of the required standards of behaviour. The present case is egregious and a large sum was misappropriated. This warrants a prohibition order of considerable duration to protect consumers, deter similar misconduct and preserve the integrity of our markets.”
6 The prohibition orders against Mr Lee were issued by the MAS pursuant to section 101A(1)(e) of the SFA and section 59(1)(d) of the FAA, and took effect from 27 August 2018. The primary aim of the prohibition order regime is to protect the financial industry, by preventing unsuitable persons from conducting regulated activities. The publication of prohibition orders also serves to ensure that a clear signal is sent to the rest of the industry that such misconduct cannot be taken lightly.
Section 82(1) of the Securities and Futures Act (Cap 289)
Subject to subsection (2) and section 99, no person shall, whether as principal or agent, carry on business in any regulated activity or hold himself out as carrying on such business unless he is the holder of a capital market services licence for that regulated activity.
Section 82(3) of the Securities and Futures Act (Cap 289)
Any person who contravenes subsection (1) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $150,000 or to imprisonment for a term not exceeding 3 years or to both and, in the case of a continuing offence, to a further fine not exceeding $15,000 for every day or part thereof during which the offence continues after conviction.
Section 409 of the Penal Code (Cap. 224)
Whoever, being in any manner entrusted with property, or with any dominion over property, in his capacity of a public servant, or in the way of his business as a banker, a merchant, a factor, a broker, an attorney or an agent, commits criminal breach of trust in respect of that property, shall be punished with imprisonment for life, or with imprisonment for a term which may extend to 20 years, and shall also be liable to fine.