Enforcement Actions
Published Date: 22 July 2021

Three individuals charged in relation to insider trading

Singapore, 22 July 2021…  Three individuals were charged today for offences under the Securities and Futures Act (SFA) and the Corruption, Drug Trafficking and Other Serious Crimes (Confiscation of Benefits) Act (CDSA). In July and August 2016, two of the individuals had purchased shares of Broadway Industrial Group Limited (BIGL), a company listed on the Mainboard of the Singapore Exchange, ahead of the company’s announcement on 22 August 2016 that it had entered into a conditional sale and purchase agreement to sell two of its businesses.

 

2          The three individuals are Mr Tan Chee Keong (Mr Tan), Mr Tay Yew Khem (Mr Tay) and Ms Hui Choy Leng (Ms Hui). During the material period, Mr Tan was the Chief Financial Officer of BIGL. Mr Tan is accused of communicating non-public and material information (insider information) concerning BIGL’s sale of its businesses to Mr Tay and Ms Hui, who are accused of purchasing BIGL shares while in possession of the insider information. In addition, Mr Tan allegedly received monies amounting to $30,000 from Mr Tay as  benefits for communicating the insider information to the latter.

 

3          Ms Hui is also accused of deceiving OCBC Securities Private Limited (OSPL), by using her father’s account to purchase BIGL shares without notifying OSPL that she was the person conducting the transactions.

 

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

 

  1. Mr Tan faces 3 charges, comprising 2 counts of communicating insider information concerning BIGL shares under section 218(3)(a) of the SFA and 1 count of acquiring property which represented his benefits of criminal conduct under section 47(1)(c) of the CDSA;

     

  2. Mr Tay faces 13 charges, comprising 12 counts of insider trading of BIGL shares under section 219(2)(a) of the SFA and 1 count of transferring property which represented Mr Tan’s benefits of criminal conduct under section 47(2)(b) of the CDSA; and

     

  3. Ms Hui faces 7 charges, comprising 6 counts of insider trading of BIGL shares under section 219(2)(a) of the SFA and 1 count 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 individuals face the following punishment:

  1. For each charge under section 218 SFA, section 219 SFA and section 201 of the 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

     

  2. For each charge under section 47 of the CDSA, imprisonment for a term which may extend to a maximum of 10 years, or a fine of up to $500,000, or both.