SINGAPORE (Jan 9): The defence counsels of alleged 2013 penny stock crash masterminds John Soh Chee Wen and Quah Su-Ling on Thursday crossed swords with state prosecutors over the potential impeachment of witness Ken Tai Chee Ming.
Tai is a key substantive prosecution witness as he was once part of the “inner circle” of brokers and remisiers allegedly used by Soh and Quah to manipulate the market.
Earlier in the trial, Tai had admitted to coordinating trades with Henry Tjoa, another member of the inner circle, behind Soh’s back.
Soh’s defence counsel, N Sreenivasan of K&L Straits Law, called this a “material omission”.
“In fact, that material omission is probably what got him his free pass in the witness stand,” Sreenivasan scoffed. “[This is] why he’s not charged. He has admitted he’s a crook, he has admitted [to] market manipulation, and he has not been charged.”
Deputy public prosecutor Teo Guan Siew objected to Sreenivasan’s “inappropriate” remark.
Sreenivasan later withdrew the “free pass” remark. “I apologise for the ‘free pass’ because I believe a lot of the facts that have come out are new to the prosecution,” Sreenivasan acknowledged.
This also earned Sreenivasan a rebuke by the judge.
“I don’t think you should be speculating on other things and… raising things that are not necessary,” said Justice Hoo Sheau Peng.
Later, Sreenivasan again raised concern over the inconsistencies in Tai’s statement.
Quah’s defense counsel, Sui Yi Siong of Eversheds Harry Elias, agreed.
"A witness who basically lies when it's convenient to do so, and tells the truth only when caught, is, in my submission, the very definition of someone who is unworthy of credit,” Sui said.
Drawing reference to Tai’s comments in court last October, Sui noted that Tai explained that he was changing his conditioned statement because “he want[ed] to co-operate fully”.
"The reason he is giving is incredible and he cannot be believed,” exclaimed Sui. “He has no credibility; and the fact that he has admitted it does absolutely nothing to save his credit from being impeached.”
However, DPP Teo rebuffed this.
“The conditioned statement cannot be treated as a prior inconsistent statement for the purpose of impeachment under section 157 of the Evidence Act,” Teo pointed out.
Teo added that the issue of credit should be assessed holistically.
Sreenivasan stressed that the prosecution had to address whether the inconsistencies in Tai’s statements on butterfinger trades were “material” and if they are “sufficient to impeach”.
Earlier this week, the court heard that Tai had made erroneous or “butterfinger” trades by entering some trades in Asiasons into his personal account, instead of an account under the control of Soh and Quah.
Justice Hoo has asked for submissions from the three parties.
However, she indicated that, for now, she is “not inclined” to agree with the defence that the conditioned statement could be used as the basis for impeachment.
Tai is the second witness who faces the possibility of impeachment.
Previously, the prosecution sought to impeach former Phillips Securities remisier Joe Tiong Sing Fatt when he took the stand last October.
Tiong had proven to be a hostile and uncooperative witness who deviated from prior statements.
Tai, on the other hand, faces an application from the defence for impeachment.
Soh’s Impersonation
Earlier in the day, the court also heard that Soh impersonated Neo Kim Hock – the former chairman of Blumont Group – in phone calls with the staff of Interactive Brokers, after the crash.
“My instructions are that Soh did assume the role of Neo in… two conversations with Mary Ng,” Sreenivasan said. He then quizzed Tai if this was done on Neo’s authorisation.
“I can’t answer that question because what transpired between Neo and Soh, I don’t know,” Tai replied.
Later, Quah’s defence counsel Philip Fong, questioned Tai on whether he “churned” the accounts in Saxo and Interactive Brokers by trading for his own benefit.
However, Tai disagreed, stressing that he had only bought or sold the shares based on instructions given to him by either Soh or Quah.
Fong also touched on possible “wash trading” by Tai.
Tai said that he had placed orders through an omnibus account that acted as a “blanket” to prevent the regulator from identifying the client.
The trial resumes Friday with Fong continuing his cross-examination of Tai.
What the 2013 Penny Stock Crash trial is about
John Soh Chee Wen is the alleged mastermind behind the penny stock crash of 2013, which prosecutors have called “the most audacious, extensive and injurious market manipulation scheme ever in Singapore”.
Together with his alleged co-conspirator and girlfriend Quah Su-Ling, Soh and his associates are alleged to have been behind the massive rise and sudden collapse of shares in Blumont Group, LionGold Corp and Asiasons Capital (now Attilan Group), which wiped out some $8 billion in market value.
Subscribers can click here to read our 8-page special pullout on the penny stock crash trial.
Don’t miss out on these highlights in the penny stock saga so far:
Third tranche of witnesses (From Jan 2, 2020)
- Witness Ken Tai admits to cheating alleged masterminds, making millions of dollars in market manipulation scheme
- John Soh threatened to 'run down' integrity of witnesses, claims former abettor Ken Tai
Second tranche of witnesses (Oct 1, 2019 to Oct 31, 2019)
- John Soh trial resumes with a peek into deceit, betrayal in 'inner circle'
- Prosecution witness Ken Tai reveals more stock brokers involved in 'market rolling' web
- More tales of jealousy, betrayal emerge in penny stock trial
- Witness Ken Tai 'disgusted' by the way boss John Soh treated his closest allies
- Witness Ken Tai admits to market manipulation for his own gain after lengthy cross-examination
- IPCO office was 'admin centre' for penny stock scandal, witness reveals
- Prosecution witness reveals Quah Su-Ling seldom in IPCO office; says took instructions mostly from Goh Hin Calm
- CGS-CIMB, DBS Vickers deny knowledge of unauthorised third-party instructions
- Overseas calls from Malaysian phone number to Singapore 'traceable,' Singtel representative reveals
- Witness admits brokerage did not conduct internal investigation into accounts despite CAD, MAS probe
- Lawyers clash over 'incomplete' disclosure of data retrieved from phones linked to market manipulation scheme
- Court hears of 'empire' building dreams amid love triangle woes with John Soh
- Alleged penny stock mastermind John Soh target of pregnancy plot, defence counsels suggest
- John Soh's ex-lover took 'extreme actions,' witness reveals
- Witness makes series of contradictory statements, blames 'undue stress'
- Prosecution seeks to impeach 'hostile witness'
First tranche of witnesses (March 11, 2019 to May 24, 2019)
- John Soh, alleged mastermind behind penny stock crash arrested; to be charged on Friday
- John Soh, Quah Su-Ling and Goh Hin Calm set to be charged
- John Soh Chee Wen and Quah Su-Ling charged in largest market manipulation scheme in Singapore’s history
- Charges slapped on masterminds of penny stock scheme cast new light on old reports
- Prosecutors confirm links between ISR Capital and John Soh
- John Soh-linked ISR Capital’s CEO Quah Su Yin resigns
- Penny stock saga’s alleged mastermind John Soh denied bail; faces total of 188 charges
- John Soh could face longest-ever jail term for financial crime in Singapore
- John Soh's legal team from WongPartnership discharges itself
- John Soh's 'treasurer' Goh quits as interim CEO of IPCO
- Defence lawyers for alleged masterminds attempt to pin 2013 penny stock crash on forced selling
- 2013 penny stock crash case to go to trial
- Alleged 'treasurer' Goh Hin Calm to testify against Soh, Quah
- Penny stock crash scandal's 'treasurer' sentenced to three years' jail
- Goh Hin Calm confirmed as prosecution witness as penny stock crash trial kicks off
- The charismatic bankrupt who allegedly pulled the strings behind Singapore's largest stock manipulation scandal
- Inner workings of penny stock scandal revealed by first prosecution witness
- Prosecution witness coached by investigating officer, claims John Soh's lawyer
- Quah Su-Ling's lawyer accuses prosecution witness of 'inventing evidence', front-running
- Ex-remisier admits to conducting trades without third-party authorisation from account holders
- Ex-remisier Ng denies being coached; RHB trader Alex Chew admits to telling the whole truth only in third statement
- 'Fearful' prosecution witness admits even third statement might not have been the whole truth
- John Soh gave presentation on 'mothership' Blumont at LionGold's offices, says prosecution witness Andy Lee
- Prosecution witness Lee accused of lying and concealing facts in court
- New witness claims Quah Su-Ling was 'hysterical' when asked about settlement of losses
- More telephone records reveal Quah's hand behind trades; private bank Coutts wrote off $4.7 mil from penny stock crash
- Witness shocked by alleged breaches in trading regulations
- SGX restrictions could have caused 2013 penny stocks crash, says Lim & Tan director
- John Soh's former girlfriend had full control of bank account used in trading, court hears
- Quah's employee delivered cash payments for 8 accounts, court hears
- Witness cites 'clerical oversight' as defence alleges lack of anti-money laundering checks
- Ex-Maybank Kim Eng dealer admits Soh gave orders on trades in 3 accounts
- Counsels argue over how witnesses' conditioned statements were prepared and used
- Witnesses say John Soh, Quah Su-Ling directed 2013 stock manipulation trades