MAS Imposes S$350,000 Penalty on Individual for Market Manipulation

Monetary Authority of Singapore Imposes Penalty on Individual for Market Manipulation

Hiap Hoe Limited (HHL) and Hotel Grand Central Limited (HGC).

This action follows a joint investigation conducted by the Commercial Affairs Department, MAS, and the Singapore Exchange Regulation (SGX RegCo). The investigation revealed that Gui purchased shares in HHL and HGC between December 2018 and August 2022 with the specific intent of artificially inflating their closing prices.

Gui, who is listed as chairman of steel solution provider Regency Steel Asia, a subsidiary of Japanese conglomerate Mitsui, also used trading accounts belonging to two of his employees to conduct unauthorized purchases of HHL and HGC shares for the same purpose. His actions resulted in the artificial inflation of the closing prices of HHL and HGC shares on 554 and 56 days, respectively, during the aforementioned period.

In response to these findings, Gui has admitted to contravening false and unauthorized trading rules under the Securities and Futures Act. He will pay the S$350,000 civil penalty to MAS without court action and has voluntarily undertaken not to be a company director or be involved in the management of a company for two years.

It is important to note that a civil penalty action is distinct from a criminal action and does not carry criminal sanctions. The civil penalty regime, implemented by MAS in 2004, serves as a complementary measure to criminal sanctions, providing a nuanced approach to combat market misconduct.

Following the announcement of the penalty, shares of HHL and HGC closed largely flat on Monday at S$0.56 and S$0.715, respectively.