Enforcement Actions
Published Date: 29 October 2020

Two individuals charged for offences under the Securities and Futures Act and Penal Code

Singapore, 29 October 2020… Two individuals were charged today for offences under the Securities and Futures Act (SFA) and Penal Code (PC). The offences relate to the trading in the shares of KTL Global Limited (KTL), a company listed on the Mainboard of the Singapore Exchange, committed between 16 October 2014 and 8 September 2015.

 

2     The two individuals are Mr Tan Kheng Yeow (Mr Tan KY) and Mr Tan Chun Yong (Mr Tan CY). During the material period, Mr Tan KY was the CEO and Executive Director of KTL while Mr Tan CY was a trading representative of OCBC Securities Pte Ltd. They are accused of being involved in a conspiracy for false trading in the shares of KTL, by using multiple trading accounts to carry out trades for the purpose of creating a false or misleading appearance of active trading in the security. Mr Tan CY is also accused of engaging in a practice which was likely to operate as a deception upon the brokerages through the unauthorised use of the trading accounts.

 

3     Mr Tan KY is alleged to have cheated KTL’s subsidiary, KTL Offshore Pte Ltd (KTLO), on two occasions in 2014 and 2015 into disbursing a total of $1,501,000.

 

4     Details of the charges against the individuals are as follows:

  1. Mr Tan KY faces 3 charges, comprising 1 count of conspiracy to create a false or misleading appearance of active trading in KTL shares under section 197(1)(a) of the SFA (false trading) and 2 counts of cheating and dishonestly inducing a delivery of property under section 420 of the PC; and

     

  2. Mr Tan CY faces 7 charges, comprising 1 count of intentionally aiding in the false trading of KTL shares and 6 counts of unauthorised trading under section 201(b) of the SFA.

5     The investigation was jointly conducted by the Monetary Authority of Singapore and the Commercial Affairs Department of the Singapore Police Force.

 

6     If convicted, the two individuals face the following punishment:

a.  For each charge under section 197 SFA and section 201 SFA, imprisonment for a term which may extend to a maximum of 7 years, or a fine of up to $250,000, or both; and

b.  For a charge under section 420 PC, imprisonment for a term which may extend to a maximum of 10 years, and the individual shall also be liable to a fine.