The court has convicted Tay Yew Khem and Hui Choy Leng for insider trading in the shares of Broadway Industrial Group B69 .
Tay was sentenced to 12 weeks in jail while Hui was sentenced to four months imprisonment.
Tay had pleaded guilty to and was convicted of two charges of insider trading under the Securities and Futures Act (SFA) and one charge of transferring benefits from criminal conduct under the Corruption, Drug Trafficking and Other Serious Crimes (Confiscation of Benefits) Act (CDSA) on March 6.
Hui pleaded guilty to and was convicted of a total of two charges of insider trading under the SFA on April 14. Four charges of “prohibited conduct” while having insider information under the SFA. Another charge, which “prohibits any person in connection with the subscription, purchase or sale of any securities, from engaging in any 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” under the SFA was also taken into consideration for the purpose of sentencing.
Tay and Hui had received non-public and material information from Broadway Industrial Group’s former CFO, Tan Chee Keong in July and August 2016 that was related to the group’s sale of its businesses. Tay and Hui had then purchased shares in the group ahead of its announcement, which was released on Aug 22, 2016.
After the group’s announcement was released, Tay and Hui sold their shares in Broadway Industrial Group and made profits of $43,377 and $77,906 respectively. Tay had also given Tan $30,000 from the profits, as previously agreed.
See also: Former Broadway Industrial Group CFO charged for insider trading
On March 6, Tay pleaded guilty to and was convicted of two charges of insider trading under the SFA and one charge of transferring benefits from criminal conduct under the CDSA. He was sentenced to 12 weeks imprisonment on March 28.
All three parties have since paid their share of profits to the state.
Tay and Hui’s convictions were a result of the joint investigation conducted by the Monetary Authority of Singapore (MAS) and the Singapore Police Force’s (SPF) Commercial Affairs Department (CAD). The investigations came from a referral by the SGX-ST.
Tan, who has since resigned from Broadway Industrial Group in August 2017, was charged in court for insider trading in July 2021.
