Two fined total of $12m for insider trading

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An honorable member of the Coffee Shop Has Just Posted the Following:

SINGAPORE - The Monetary Authority of Singapore (MAS) has imposed civil penalties on Mr Lim Oon Cheng and his niece, Ms Lim Huey Yih, for contravening the Securities and Futures Act (SFA), the regulator said on Wednesday.

It levied a civil penalty of $9.597 million on Mr Lim Oon Cheng for insider trading under the Securities and Futures Act. The amount includes a separate penalty of $50,000 for false trading.

Ms Lim was fined $2.241 million.

Both Mr Lim and Ms Lim have admitted to committing insider trading. Mr Lim has also admitted to false trading.


From May 15 to May 22, 2009, Mr Lim purchased 2.27 million shares in Singapore Petroleum Company (SPC) and 101,000 shares in Keppel Corporation Limited (KCL) while in possession of price-sensitive and non-public information relating to PetroChina International (Singapore)'s (PIPL) acquisition of SPC shares from KCL, and PIPL's mandatory general offer for SPC shares.

Ms Lim purchased 892,000 shares in SPC over the same period while also in possession of this price-sensitive and non-public information.

The share acquisition and the mandatory general offer were subsequently announced on May 24, 2009.

In addition, Mr Lim entered an order on May 19, 2009 to sell 300,000 shares in SPC at the intra-day high of $4.39 without any intention to fulfill the order. This created a false and misleading appearance in the market for SPC shares.

Mr and Ms Lim made a profit of $3,818,853 and $896,340 respectively from their insider trading activities.

- See more at: http://www.straitstimes.com/news/bus...29#xtor=CS1-10


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