A man has been charged for offences under the Securities and Futures Act (SFA) on Feb 9, says the Monetary Authority of Singapore (MAS).
The investigation was jointly conducted by the central bank and the Commercial Affairs Department (CAD) of the Singapore Police Force (SPF).
Kenneth Goh Jia Poh has been accused of making false statements in two Telegram chat groups to induce others to trade in multiple securities listed on the Singapore Exchange (SGX).
The statements were made between July and August 2020.
Goh is also accused of engaging in a conspiracy with another person to make similar false sentences in the same Telegram chat groups.
Investigation on the second person is ongoing.
Goh faces a total of two charges under section 200(1)(a) of the SFA. The two charges comprise one count of making false statements and one count of conspiracy to make false statements to induce others to deal in securities.
He was previously charged for earlier offences relating to false trading and unauthorised use of trading accounts under the SFA on April 8, 2021.
If convicted, Goh faces imprisonment for a term which may extend to a maximum of seven years, or a fine of up to $250,000, or both, for each charge under section 200(1)(a) SFA.
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On Dec 10, 2020, the Singapore Exchange Regulation (SGX RegCo) had warned the public of “possible market misconduct activities” using Telegram chat groups and other channels where investment strategies are discussed.
Wrongdoers in these channels may engage in “pump and dump” schemes where they would promote interest in a particular security(s) for their own benefit, wrote the market regulator in the statement.
Wrongdoers, who usually work alone or in groups, would encourage other members in the chat group to trade a particular security. When more members are incited to trade, thus raising the price of the security, the wrongdoers would then sell shares in that security that they had accumulated earlier, at a higher price.
Photo: Bloomberg
