Enforcement Actions
Published Date: 08 September 2022

Court Convicts Five Former Remisiers for False Trading

Singapore, 08 September 2022… Five former remisiers have been convicted and sentenced to imprisonment terms and fines for false trading in the shares of 55 securities listed on the Mainboard and Catalist of the Singapore Exchange, over 85 occasions between 9 March 2015 and 12 April 2016. 

2 On 4 May 2022, Mr Lim Ming Chit, a former remisier with Phillip Securities Pte Ltd (PSPL), pleaded guilty to and was convicted of 10 charges under section 197(1)(a) of the Securities and Futures Act (SFA). 12 remaining charges under the same section were taken into consideration for the purpose of sentencing. On 18 May 2022, Mr Lim was sentenced to 12 weeks’ imprisonment and a fine of $260,000. 

3 On 18 August 2022, four other individuals were convicted of charges under section 197(1)(a) of the SFA and sentenced on 30 August 2022. The details of their convictions and sentences imposed are as follows: 

a) Mr Alan Lee, a former remisier with OCBC Securities Pte Ltd, pleaded guilty to and was convicted of 20 charges. 60 remaining charges were taken into consideration for the purpose of sentencing. Mr Lee was sentenced to 24 weeks’ imprisonment and a fine of $260,000. 
b) Mr Chew Wei Zhan, a former remisier with DBS Vickers Securities (Singapore) Pte Ltd, pleaded guilty to and was convicted of 20 charges. 59 remaining charges were taken into consideration for the purpose of sentencing. Mr Chew was sentenced to 23 weeks’ imprisonment and a fine of $260,000.
c) Mr Lee Wei Kai, a former remisier with PSPL, pleaded guilty to and was convicted of 20 charges. 41 remaining charges were taken into consideration for the purpose of sentencing. Mr Lee was sentenced to 23 weeks’ imprisonment and a fine of $260,000.
d) Mr Lim Ming Yi, a former remisier with Maybank Kim Eng Securities Pte Ltd, pleaded guilty to and was convicted of 20 charges. 35 remaining charges were taken into consideration for the purpose of sentencing. Mr Lim was sentenced to 19 weeks’ imprisonment and a fine of $190,000.

Background to the case

4 On or before 9 March 2015, Mr Alan Lee, Mr Chew, Mr Lee Wei Kai and Mr Lim Ming Chit agreed to carry out a scheme to create a false appearance of active trading in certain securities listed on the Singapore Exchange (the Scheme). The Scheme involved them conducting coordinated trades in targeted share counters in larger volumes and at higher prices, to create an artificial impression of market interest in the securities they owned, thereby inducing other market participants to trade in the securities and driving up the share prices. 

5 From 9 March 2015 to 10 June 2015, the Scheme was carried out between Mr Alan Lee, Mr Chew, Mr Lee Wei Kai and Mr Lim Ming Chit in respect of 17 securities on 17 separate occasions. On or around 11 June 2015, Mr Lim Ming Yi joined the Scheme. From 11 June 2015 to 12 April 2016, between two to five of the individuals carried out the Scheme in respect of 46 securities on 68 separate occasions. 

6 In total, the five individuals made a profit of about $1.2 million from the market rigging scheme. Heavy fines were imposed in order to disgorge the five individuals of the profits that they earned. 

7 The investigations against the five individuals arose from a referral by the Singapore Exchange Securities Trading Limited. Their convictions were a result of a joint investigation conducted by the Monetary Authority of Singapore and the Commercial Affairs Department of the Singapore Police Force.