Singapore Court Sentenced Boutique Fund Manager Nech Capital Former Trader Pan Qi to 5 Weeks Jail & S$120,000 Fine for Fraud on Employer & CGS-CIMB Securities, Executed Trades for His Relatives to Make Profit at the Expense of Company
26th April 2023 | Singapore
A Singapore court has sentenced boutique fund manager Nech Capital former trader Pan Qi to 5 weeks jail and S$120,000 fine for fraud on employer (Nech Capital) & for deceiving CGS-CIMB Securities with unauthorised use of trading account, executing trades to make profit for his relatives at the expense of his company (Nech Capital). Singapore MAS (25/4/23): “Mr Pan Qi was today convicted and sentenced to 5 weeks imprisonment and fined $120,000 for offences involving fraud and deceit under the Securities and Futures Act (SFA). Between 4 January 2019 and 24 July 2020, Mr Pan worked as a trader at Nech Capital Private Limited (NCPL), a fund management company. During this time, he executed trades in several securities counters using accounts belonging to his relatives and that of NCPL. Mr Pan would first sell these securities to his relatives, before buying them back at higher prices using NCPL’s accounts. In some instances, he would use NCPL’s accounts to buy securities from his relatives before selling them back to them at lower prices. These trades profited Mr Pan’s relatives at the expense of NCPL and Mr Pan shared in these profits. Mr Pan pleaded guilty to one charge of deceiving NCPL by conducting fraudulent trades under section 201(b) of the SFA. Two remaining charges under section 201(b) of the SFA for engaging in a similar course of business to defraud NCPL and for the unauthorised use of his relatives’ trading accounts were taken into consideration for the purpose of sentencing. Mr Pan’s conviction was the result of a joint investigation conducted by the Monetary Authority of Singapore (MAS) and the Commercial Affairs Department of the Singapore Police Force. The investigations against Mr Pan arose from referrals by the Singapore Exchange Securities Trading Limited.”
“ Singapore Court Sentenced Boutique Fund Manager Nech Capital Former Trader Pan Qi to 5 Weeks Jail & S$120,000 Fine for Fraud on Employer & CGS-CIMB Securities, Executed Trades for His Relatives to Make Profit at the Expense of Company “
Section 201(b) of the Securities and Futures Act (SFA) at the time of the offences
Section 201(b) of the SFA prohibits a person from directly or indirectly, in connection with the subscription, purchase or sale of any capital markets products, engaging in an act, practice or course of business which operates as a fraud or deception, or is likely to operate as a fraud or deception, upon any person.
Singapore MAS Charged Boutique Fund Manager Nech Capital Former Trader Pan Qi for Fraud on Employer & CGS-CIMB Securities, Executed Trades for His Relatives to Make Profit at the Expense of Company
25th August 2022 – Singapore central bank Monetary Authority of Singapore (MAS) has charged Singapore boutique fund manger Nech Capital former trader Pan Qi for fraud on employer (Nech Capital) & for deceiving CGS-CIMB Securities with unauthorised use of trading account, executing trades to make profit for his relatives at the expense of his company (Nech Capital). Singapore MAS: “Mr Pan is accused of making a series of pre-arranged trades between 4 January 2019 and 14 August 2020 in various securities (Shares in 24 companies listed on SGX), between trading accounts belonging to him and his relatives, and his former employer’s trading accounts. The trades were executed at prices which resulted in the trading accounts belonging to Mr Pan and his relatives consistently making trading profits at the expense of the company. Mr Pan is also accused of deceiving CGS-CIMB Securities, as he had allegedly failed to obtain authorisation from the brokerage firm to operate one of the trading accounts which was not under his name.” If convicted of the charges under section 201(b) of the SFA, Mr Pan faces a fine of up to $250,000 or imprisonment for a term of up to 7 years, or both, for each charge. The investigation was jointly conducted by the Monetary Authority of Singapore and the Commercial Affairs Department of the Singapore Police Force.
Joint Investigation by Singapore MAS and CAD
The investigation was jointly conducted by the Monetary Authority of Singapore and the Commercial Affairs Department of the Singapore Police Force.
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