Enforcement Actions
Published Date: 19 August 2022

Trader charged for fraud and deceit under the Securities and Futures Act

Singapore, 19 August 2022…  Mr Pan Qi was charged today for offences involving fraud and deceit under the Securities and Futures Act (SFA)1.

2          The investigation was jointly conducted by the Monetary Authority of Singapore and the Commercial Affairs Department of the Singapore Police Force. Mr Pan faces two charges under section 201(b) of the SFA, for engaging in a course of business which operated as a fraud on his ex-employer, Nech Capital Private Limited, a fund management company. He faces an additional charge under this same section for deceiving CGS-CIMB Securities (Singapore) Private Limited (CGS-CIMB Securities) through the unauthorised use of a trading account.

3          Mr Pan is accused of making a series of pre-arranged trades between 4 January 2019 and 14 August 2020 in various securities2, between trading accounts belonging to him and his relatives, and his former employer’s trading accounts. The trades were executed at prices which resulted in the trading accounts belonging to Mr Pan and his relatives consistently making trading profits at the expense of the company.

4          Mr Pan is also accused of deceiving CGS-CIMB Securities, as he had allegedly failed to obtain authorisation from the brokerage firm to operate one of the trading accounts which was not under his name.

5          If convicted of the charges under section 201(b) of the SFA, Mr Pan faces a fine of up to $250,000 or imprisonment for a term of up to 7 years, or both, for each charge.

1Securities and Futures Act (Cap. 289, Rev Ed 2006).

2Shares in twenty-four companies listed on the Mainboard or the Catalist of the Singapore Exchange Securities Trading Ltd.