A former company director has been fined S$137,000 for insider trading after selling more than two million shares in his parents’ trading accounts using non-public information.
In a press release on Sunday (17 Nov), the Singapore Police Force (SPF) said the Monetary Authority of Singapore (MAS) had taken action against Ang Yew Jin Eugene, who used insider knowledge to help his parents avoid losses.
Source: Maxim Hopman on Unsplash, for illustrative purposes only
Ang was a director at Alpha Energy Holdings Limited (AEHL) in 2019.
On 18 Nov 2019, AEHL announced that one of its creditors had demanded immediate repayment of US$64 million (S$83.4 million) after the company and its subsidiaries defaulted on part of a loan.
The amount was roughly 10 times the value of AEHL’s assets as of 30 June 2019. Thus, trading of its shares was suspended right after the announcement.
Given his position, Ang already knew AEHL had failed to make repayment and that the creditor would be entitled to call in the entire debt once the default occurred.
Armed with this non-public information, Ang sold more than two million AEHL shares held in his parents’ accounts on 13 Nov 2019, five days before the announcement.
By selling early, his parents avoided losses of about S$54,900.
Source: MAS
MAS fined Ang S$137,000 for breaching insider trading rules under Section 218 of the Securities and Futures Act.
He admitted to the offence and paid the penalty without court proceedings.
Ang also voluntarily agreed not to serve as a director or take part in company management for two years.
Also read: M’sian man arrested for involvement in MAS impersonation scam, over S$31K stolen from victim
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Featured image adapted from the Monetary Authority of Singapore and Maxim Hopman on Unsplash. Right image for illustrative purposes only.