SINGAPORE: A 36-year-old man was sentenced in order to three years and three months’ jail on Tuesday (Jul 26) for manipulating the share price of Sky One Holdings Restricted and other offences.
Mr. bieber Goh Hanshi pleaded guilty to 12 charges, including nine under the Securities and Futures Act to get market manipulation and unauthorised trading.
The other three charges were intended for cheating two banking institutions into disbursing hundreds of thousands of dollars to accounts controlled simply by Goh.
Another 21 fees were taken into consideration throughout sentencing.
In the news release, the Singapore Police Force (SPF) stated that in September and October 2013, Goh had directed 3 trading representatives in order to “push up plus maintain” the reveal price of Sky 1 Holdings.
At that time, the company was listed on the Singapore Exchange’s (SGX) Catalist platform meant for fast-growing enterprises.
The three representatives used 15 trading accounts belonging to their particular clients, friends and family to buy and sell Sky 1 shares to manipulate the marketplace.
Goh also used 12 investing accounts belonging to their friends and family to “conduct trades for his own benefit”, said the SPF.
All the trades were performed without the consent of the respective trading firms, the police added.
Research also revealed that Goh “instigated” 3 nominees – who had been his friends and family associates – to open reveal financing accounts along with two financial institutions.
Although the accounts had been opened in the nominees’ names, it was Goh who had “full and effective control” over them, said the police.
Goh then organized for Sky A single shares to be used in the nominees. He used the shares as collateral for a loan, which he used to buy more shares.
He or she again used the new shares as security to borrow more money.
In total, the financial institutions involved were cheated into disbursing more than S$4. 2 million to the accounts controlled by Goh.
On Oct 28, 2013, Sky 1 shares opened from S$0. 46. Can be 10. 50am, the cost plummeted to S$0. 043, a 90 per cent drop.
Following the crash of Sky One’s reveal price, the banking institutions sold the shares that had been pledged for them.
The institutions are still owed at least S$779, 845. 96, said the police.
The three trading representatives had been also convicted associated with unauthorised trading and sentenced to 3 months to three and a half months’ jail.
The three candidates have also been hauled to court. One has been sentenced to 8 months’ jail meant for cheating, while courtroom proceedings against the additional two are ongoing.