Singapore Court Sentenced ex-KTL Global CEO & Executive Director Tan Kheng Yeow to Jail for 8 Months for False Trading to Create Appearance of Active Trading of KTL Shares, KTL Unable to Meet Singapore Exchange (SGX) New Minimum Trading Price Requirement of S$0.20 Over 6 Months Period Implemented in 2015 March, Conspired with Tang Boon Hai Between 2014 & 2015 to Induce Investors to Buy KTL Shares & Push Up KTL Share Price, Tan Kheng Yeow KTL Share Value Increased & Arranged Financing for KTL Shares to Fund More Trades in 14 Accounts of Tang Boon Hai Who was Sentenced to 30-Month Jail in 2023
29th August 2024 | Hong Kong
A Singapore court has sentenced ex-KTL Global CEO & Executive Director Tan Kheng Yeow to jail for 8 months for false trading to create appearance of active trading of KTL shares, with KTL being unable to meet Singapore Exchange (SGX) new minimum trading price requirement of S$0.20 over 6 months period implemented in 2015 March. Tan Kheng Yeow conspired with Tang Boon Hai between 2014 & 2015 to induce investors to buy KTL shares & push up KTL share price. Tan Kheng Yeow KTL share value increased, and arranged financing for KTL shares to fund more trades in 14 accounts of Tang Boon Hai who was sentenced to 30-month jail in 2023. Singapore MAS (28/8/24): “Tan Kheng Yeow, the former Chief Executive Officer and Executive Director of KTL Global Limited (KTL) was sentenced to 8 months’ imprisonment by the State Courts on 23 January 2024 for engaging in a conspiracy with another individual, Mr Tang Boon Hai, to create a false appearance of active trading in KTL shares. Mr Tan has commenced serving his sentence, following the High Court’s dismissal of his appeal against sentence on 19 July 2024. On 1 August 2014, SGX announced a minimum trading price (MTP) requirement for issuers listed on the Mainboard of the Singapore Exchange. Under this requirement, which was implemented in March 2015, an issuer’s volume weighted average price (VWAP) over a 6-month period cannot fall below $0.20. An issuer that failed to comply with the MTP requirement may face delisting. The 6-month VWAP of KTL shares as of 1 August 2014 was below the minimum price required. Mr Tan admitted that amid concerns of KTL’s inability to meet the MTP requirement, he had, between 16 October 2014 and 8 September 2015, conspired with Mr Tang to create a false or misleading appearance of active trading in KTL shares. By doing so, the duo intended to induce genuine market participants to buy KTL shares, thereby increasing the share price. Mr Tan also held significant quantities of KTL shares and knew that his net worth would increase along with the share price. In furtherance of this conspiracy, Mr Tan arranged for funds to be transferred to Mr Tang, to finance trades in KTL shares placed by the latter in 14 trading accounts. Mr Tan pleaded guilty to one charge under Section 197(1)(a) of the Securities and Futures Act read with Section 109 of the Penal Code. He still faces two other charges of cheating and dishonestly inducing delivery of property, and court proceedings are ongoing. Mr Tang was convicted and sentenced on 18 April 2023. Court proceedings against one other individual charged in relation to this matter are ongoing. Mr Tan’s conviction was the result of a joint investigation conducted by the MAS and the SPF, following a referral by the Singapore Exchange Securities Trading Limited.
“ Singapore Court Sentenced ex-KTL Global CEO & Executive Director Tan Kheng Yeow to Jail for 8 Months for False Trading to Create Appearance of Active Trading of KTL Shares, KTL Unable to Meet Singapore Exchange (SGX) New Minimum Trading Price Requirement of S$0.20 Over 6 Months Period Implemented in 2015 March, Conspired with Tang Boon Hai Between 2014 & 2015 to Induce Investors to Buy KTL Shares & Push Up KTL Share Price, Tan Kheng Yeow KTL Share Value Increased & Arranged Financing for KTL Shares to Fund More Trades in 14 Accounts of Tang Boon Hai Who was Sentenced to 30-Month Jail in 2023
Notes
(A) Section 197(1)(a) of the Securities and Futures Act (SFA) at the time of the offences
Under section 197(1)(a) of the SFA, no person shall do any thing, cause any thing to be done or engage in any course of conduct, if his purpose, or any of his purposes, for doing that thing, causing that thing to be done or engaging in that course of conduct, as the case may be, is to create a false or misleading appearance of active trading in any securities on a securities market.
(B) Section 109 of the Penal Code at the time of the offence
Under section 109 of the PC, whoever abets any offence shall, if the act abetted is committed in consequence of the abetment, and no express provision is made by the PC for the punishment of such abetment, be punished with the punishment provided for the offence.
(C) Section 204(1) of the SFA at the time of the offence
Any person who contravenes any of the provisions of this Division shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $250,000 or to imprisonment for a term not exceeding 7 years or to both.
- [1] Mr Tan was charged on 29 October 2020. Please refer to the media release here for further information.
- [2] Mr Tang was convicted on 18 April 2023 and sentenced to 30 months’ imprisonment. Please refer to the media release here for more information.
- [3] Mr Tan Chun Yong was charged on 29 October 2020. Please refer to the media release here for further information.
Singapore Court Sentenced ex-KTL Global CEO & Executive Director Tan Kheng Yeow to Jail for 8 Months for False Trading to Create Appearance of Active Trading of KTL Shares, KTL Unable to Meet Singapore Exchange (SGX) New Minimum Trading Price Requirement of S$0.20 Over 6 Months Period Implemented in 2015 March, Conspired with Tang Boon Hai Between 2014 & 2015 to Induce Investors to Buy KTL Shares & Push Up KTL Share Price, Tan Kheng Yeow KTL Share Value Increased & Arranged Financing for KTL Shares to Fund More Trades in 14 Accounts of Tang Boon Hai Who was Sentenced to 30-Month Jail in 2023
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