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04-04-2014, 07:47 AM
What goes round comes round... no matter how long it takes...
Probe into penny stock scandal widens
CAD asks chief execs of three more listed companies for electronic data
Published on Apr 04, 2014
By Grace Leong
THE investigation into the penny stock scandal that wiped out $8 billion in share market value has been widened to include the top management of at least three more listed companies.
News broke yesterday that the chief executives at Innopac Holdings, ITE Electric and ISR Capital have been asked to provide electronic data to the white-collar crime unit, the Commercial Affairs Department (CAD).
Ipco International and several of its subsidiaries are also under investigation.
The CAD wants computers and other tech equipment, corporate electronic data, data storage devices and any relevant documents from these companies from Jan 1, 2011 to date.
Mr Robson Lee, a senior corporate lawyer with Shook Lin & Bok, told The Straits Times yesterday: "The scale of the investigations seems to be very wide this time, as a number of both listed and unlisted companies have been included in the probe."
Yesterday's dramatic escalation came after the Monetary Authority of Singapore and CAD announced on Wednesday that they are investigating possible violations of the Securities and Futures Act stemming from alleged trading irregularities in the shares of Blumont Group, Asiasons Capital and LionGold Corp.
The shares of the trio skyrocketed between 40 and 160 per cent last August and September before plunging between 91 and 96 per cent over a few days in October, knocking off more than $8 billion in market value.
Ipco told the Singapore Exchange last night that the CAD had asked the company and some subsidiaries - Ipco Constructors, Friendship Bridge Holding Co, Nueviz Investment and Sino Gas Holdings - to assist with its probe.
The board said it was not aware if any offence had been committed, adding that operations are not affected by the probe.
In an earlier separate development, Ipco chief executive Quah Su Ling was among several parties sued last November over $79 million in losses sustained by Interactive Brokers in the wake of the penny stock crash.
The CAD also asked ISR Capital, majority-owned by private equity firm Asiasons, to assist with the probe. It made the same request for data belonging to ISR chief executive Quah Su Yin.
Similar CAD requests were made to Innopac chief executive Wong Chin-Yong; ITE Electric chief executive Ho Cheng Leong; its chief operating officer, Mr Ang Cheng Gian; and Mr Goh Hin Calm, a non-executive and independent director.
Innopac and ITE Electric said the four men will remain in their posts as the investigation proceeds.
Magnus Energy announced on Wednesday that two subsidiaries and a former subsidiary had received CAD notices to supply information and data belonging to executive director Koh Teng Kiat and chief financial officer Luke Ho Khee Yong.
Asiasons Capital, which requested a trading halt yesterday morning, announced that it had not received any notice to assist with the investigation.
It added that the investigation does "not pertain to (its) business operations, which remain unaffected".
Blumont said on Wednesday that executive chairman Neo Kim Hock and executive director James Hong Gee Ho, and the unit G1 Investments have been asked to assist.
LionGold and subsidiary LionGold Investments have also received CAD notices to provide data belonging to Ms Lynne Ng Su Ling, a non-executive independent director, and Mr Peter Chen Hing Woon, a company employee.
LionGold said on Wednesday that it is "not aware if any offence has been committed, and has not heard from Ms Ng or Mr Chen in respect of the investigations".
News of the probe sent LionGold shares plummeting nearly 18 per cent, or 2.6 cents, to 12.2 cents yesterday, with almost 98 million shares changing hands.
Lawyer Mr Lee noted: "At this juncture, it is premature to conclude if any offences have been committed.
"Under the Securities and Futures Act, trading irregularities which are offences would refer to insider dealing, the creation of a false market, or share price manipulation."
gleong@sph.com.sg
Background story
WAIT AND SEE
At this juncture, it is premature to conclude if any offences have been committed. Under the Securities and Futures Act, trading irregularities which are offences would refer to insider dealing, the creation of a false market, or share price manipulation.
- Mr Robson Lee, a senior corporate lawyer
Probe into penny stock scandal widens
CAD asks chief execs of three more listed companies for electronic data
Published on Apr 04, 2014
By Grace Leong
THE investigation into the penny stock scandal that wiped out $8 billion in share market value has been widened to include the top management of at least three more listed companies.
News broke yesterday that the chief executives at Innopac Holdings, ITE Electric and ISR Capital have been asked to provide electronic data to the white-collar crime unit, the Commercial Affairs Department (CAD).
Ipco International and several of its subsidiaries are also under investigation.
The CAD wants computers and other tech equipment, corporate electronic data, data storage devices and any relevant documents from these companies from Jan 1, 2011 to date.
Mr Robson Lee, a senior corporate lawyer with Shook Lin & Bok, told The Straits Times yesterday: "The scale of the investigations seems to be very wide this time, as a number of both listed and unlisted companies have been included in the probe."
Yesterday's dramatic escalation came after the Monetary Authority of Singapore and CAD announced on Wednesday that they are investigating possible violations of the Securities and Futures Act stemming from alleged trading irregularities in the shares of Blumont Group, Asiasons Capital and LionGold Corp.
The shares of the trio skyrocketed between 40 and 160 per cent last August and September before plunging between 91 and 96 per cent over a few days in October, knocking off more than $8 billion in market value.
Ipco told the Singapore Exchange last night that the CAD had asked the company and some subsidiaries - Ipco Constructors, Friendship Bridge Holding Co, Nueviz Investment and Sino Gas Holdings - to assist with its probe.
The board said it was not aware if any offence had been committed, adding that operations are not affected by the probe.
In an earlier separate development, Ipco chief executive Quah Su Ling was among several parties sued last November over $79 million in losses sustained by Interactive Brokers in the wake of the penny stock crash.
The CAD also asked ISR Capital, majority-owned by private equity firm Asiasons, to assist with the probe. It made the same request for data belonging to ISR chief executive Quah Su Yin.
Similar CAD requests were made to Innopac chief executive Wong Chin-Yong; ITE Electric chief executive Ho Cheng Leong; its chief operating officer, Mr Ang Cheng Gian; and Mr Goh Hin Calm, a non-executive and independent director.
Innopac and ITE Electric said the four men will remain in their posts as the investigation proceeds.
Magnus Energy announced on Wednesday that two subsidiaries and a former subsidiary had received CAD notices to supply information and data belonging to executive director Koh Teng Kiat and chief financial officer Luke Ho Khee Yong.
Asiasons Capital, which requested a trading halt yesterday morning, announced that it had not received any notice to assist with the investigation.
It added that the investigation does "not pertain to (its) business operations, which remain unaffected".
Blumont said on Wednesday that executive chairman Neo Kim Hock and executive director James Hong Gee Ho, and the unit G1 Investments have been asked to assist.
LionGold and subsidiary LionGold Investments have also received CAD notices to provide data belonging to Ms Lynne Ng Su Ling, a non-executive independent director, and Mr Peter Chen Hing Woon, a company employee.
LionGold said on Wednesday that it is "not aware if any offence has been committed, and has not heard from Ms Ng or Mr Chen in respect of the investigations".
News of the probe sent LionGold shares plummeting nearly 18 per cent, or 2.6 cents, to 12.2 cents yesterday, with almost 98 million shares changing hands.
Lawyer Mr Lee noted: "At this juncture, it is premature to conclude if any offences have been committed.
"Under the Securities and Futures Act, trading irregularities which are offences would refer to insider dealing, the creation of a false market, or share price manipulation."
gleong@sph.com.sg
Background story
WAIT AND SEE
At this juncture, it is premature to conclude if any offences have been committed. Under the Securities and Futures Act, trading irregularities which are offences would refer to insider dealing, the creation of a false market, or share price manipulation.
- Mr Robson Lee, a senior corporate lawyer