MAS enforces penalty for false trading

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By CARINE LEE


The Monetary Authority of Singapore has taken civil action against Wong Chow Lin for false trading.

The regulator said that for 39 days between 1 August 2008 and 28 February 2009, Mr Wong bought between one and three lots of Heng Long International Ltd (HLI) shares near the close of trading, with the intention of marking the closing price of HLI shares to exceed the last traded price.

Mr Wong was an appointed representative and the head of business development for corporate broking in CIMB Securities Pte Ltd at the time of the contravention.

MAS said Mr Wong did not appear to have profited directly from his trades, but has admitted his intention of maintaining or inflating the closing price of HLI shares so as to impress clients.

As a result of his trades, HLI shares closed between 1.8 per cent and 36.4 per cent above the preceding traded price.

In addition to the S$50,000 penalty, which Mr Wong has paid to MAS without court action, he has been issued with two concurrent prohibition orders.