Singapore Court Convicts Former CFO of SGX Listed Broadway Industrial Group to 3 Months Jail for Profiting $30,000 for Insider Trading
17th June 2022 | Singapore
A Singapore court has convicted and sentenced the former CFO (Tan Chee Keong) of Broadway Industrial Group (Listed on the Mainboard of the Singapore Exchange) to 3 months and 2 weeks’ imprisonment for insider trading and acquiring benefits from criminal conduct, profiting $30,000 from insider trade and receiving the profit in cash from his friend. Monetary Authority of Singapore (MAS): “Between March and August 2016, BIGL was in discussions with Platinum Equity Advisors, LLC to sell two of its businesses. Mr Tan was privy to insider information on the deal and disclosed the information to two friends on numerous occasions, knowing that they would likely purchase BIGL shares. The two individuals subsequently purchased and sold shares in BIGL and made profits. In October 2016, Mr Tan received $30,000 in cash from one of these friends, which was his share of the profits from the insider trade. Mr Tan has paid $30,000 to the state, as disgorgement of his share of the profits from the offence.” Ms Loo Siew Yee, MAS Assistant Managing Director (Policy, Payments & Financial Crime): “As the chief financial officer of a listed company, Mr Tan owed a duty to the company and its shareholders not to divulge price-sensitive information that has not been disclosed to the market at large. His act of conveying such information to his friends to benefit them and himself undermines public confidence in the transparency and integrity of our capital market. MAS will continue to pursue officers of companies who engage in such misconduct, to ensure a level playing field for all market participants.”
“ Singapore Court Convicts Former CFO of SGX Listed Broadway Industrial Group to 3 Months Jail for Profiting $30,000 for Insider Trading “
Monetary Authority of Singapore (MAS) Statement:
Court Convicts Former Chief Financial Officer of SGX-listed Company for Insider Trading and Acquiring Benefits from Criminal Conduct
Singapore, 10 June 2022
Mr Tan Chee Keong (Mr Tan) was today convicted and sentenced to 3 months and 2 weeks’ imprisonment for insider trading and acquiring benefits from criminal conduct. At the time of the commission of the offence, Mr Tan was the Chief Financial Officer of Broadway Industrial Group Limited (BIGL), a company listed on the Mainboard of the Singapore Exchange1.
2. Mr Tan pleaded guilty to and was convicted of a charge under section 218(3)(a) of the Securities and Futures Act (SFA) for communicating non-public and material information (insider information) concerning BIGL shares to one of his friends, and a charge under section 47(1)(c) of the Corruption, Drug Trafficking and Other Serious Crimes (Confiscation of Benefits) Act (CDSA) for acquiring a sum of money from that friend. A remaining charge under the SFA, for communicating insider information concerning BIGL shares to another friend, was taken into consideration for the purpose of sentencing.
3. Between March and August 2016, BIGL was in discussions with Platinum Equity Advisors, LLC to sell two of its businesses. Mr Tan was privy to insider information on the deal and disclosed the information to two friends on numerous occasions, knowing that they would likely purchase BIGL shares. The two individuals subsequently purchased and sold shares in BIGL and made profits. In October 2016, Mr Tan received $30,000 in cash from one of these friends, which was his share of the profits from the insider trade. Mr Tan has paid $30,000 to the state, as disgorgement of his share of the profits from the offence.
4. The investigations against Mr Tan arose from a referral by the Singapore Exchange Securities Trading Limited. Mr Tan’s conviction was a result of a joint investigation conducted by the Monetary Authority of Singapore (MAS) and the Commercial Affairs Department of the Singapore Police Force. The court proceedings against the two individuals who are alleged to have received insider information from Mr Tan are ongoing.
5. Ms Loo Siew Yee, Assistant Managing Director (Policy, Payments & Financial Crime), MAS, said, “As the chief financial officer of a listed company, Mr Tan owed a duty to the company and its shareholders not to divulge price-sensitive information that has not been disclosed to the market at large. His act of conveying such information to his friends to benefit them and himself undermines public confidence in the transparency and integrity of our capital market. MAS will continue to pursue officers of companies who engage in such misconduct, to ensure a level playing field for all market participants.”
[1] Mr Tan was the Chief Financial Officer of BIGL from 5 October 2015 to 8 August 2017Sign Up / Register
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