SINGAPORE (May 9): Woon Kok Yan, head of risk management of OCBC Securities, placed the blame squarely on trade representatives for failing to obtain formal third-party authorisation, when he took the stand in court on Day 13 of the penny stock manipulation trial of John Soh Chee Wen and Quah Su-Ling.
In his conditional statement, Woon cited the terms and conditions for account openings, as well as the SGX-ST rulebook, as rules for account holders to abide, including giving formal third-party authorisation.
Deputy public prosecutor Ng Jean Ting then asked Woon about the contents of OCBC Securities’ third-party authorisation form.
Woon said information required by the form included the third party’s name, address, NRIC number and the reason why the third party was being authorised.
OCBC Securities would then carry out bankruptcy, any delinquency in payment and anti-money laundering checks, he added.
According to Woon, an individual can only be authorised as a third party for up to three accounts. Limiting the number of accounts they can act for is to allay the concern of an underlying scheme and reduces the risk for OCBC Securities.
During cross-examination by the defence counsels, Woon kept repeating that “clauses were there to limit the risk for [OCBC Securities],” and that the “[trade representatives] would be in breach”.
When Soh’s defence counsel N. Sreenivasan asked Woon if any action had been taken by the Singapore Exchange against OCBC Securities or any of its traders for unauthorised third-party trading linked to the three penny stocks, Woon replied “No.”
It was later revealed that OCBC remisier Angelia Poon Mei Choo, who took the stand on Wednesday, has been suspended by OCBC Securities since March 28.
Sreenivasan also revealed that OCBC Securities accounted for 10% to 14% of trades involving Blumont, Asiasons (now known as Attilan Group) and LionGold (BAL) shares.
He also inquired about a trader code related to OCBC Securities, which transacted in large volumes of BAL shares. The prosecution later revealed that the code was related to trades done by institutional clients of OCBC Securities.
Quah’s defence counsel Philip Fong also grilled Woon on specific clauses in the terms and conditions of an account.
Referring to Clause 2C, Fong got Woon to agree that unless a trade representative informed the account holder that formal third-party authorisation was required, the account holder would not know.
Under re-examination by Ng, Woon was asked how an account holder could communicate his instructions through a third party, under Clause 2C.
Woon said the account holder needed to fill in a third-party authorisation form, retracting from his earlier answer where he agreed with Fong that this was not stated under Clause 2C.
When asked if the trade representative could waive the requirement of the form, Woon said the form was necessary.
“[OCBC Securities] would not know if the [trade representative] does not submit the form,” says Woon.
The trial resumes on Friday, when a trade representative from Lim & Tan Securities will take the stand.
2013 Penny Stock Crash
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.
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Don’t miss out on these highlights in the penny stock saga so far:
- 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
