John Soh claimed ex-SGX chief regulator Teng fed him updates on CAD probe: Prosecution witness

In January 2014, Teng was promoted to chief regulatory officer of the bourse – a position he held for just over a year before he took on his current role as CEO of Abu Dhabi Global Market’s (ADGM) Financial Services Regulatory Authority.

Under cross-examination by Philip Fong, the lawyer for Soh’s co-accused Quah Su-Ling, Tai alleged that Soh had claimed to have been receiving information from someone from the authorities during the time the market manipulators were being probed by the Commercial Affairs Department (CAD).

“According to John, he say he has someone in CAD that he knows, that tells him what was the development. So that was also the reason why, in December 2013 onward, we get constant update what was the development,” Tai said.

“We were told that the CAD were looking at three aspect of this case: was there any money-laundering involved? Who pushed up the share price? And who shorten it down?” he added.

When pressed by Fong on the identity of this person who was feeding Soh with such information, Tai claimed that Soh had named Teng.

“I'm not the only one that knows about this,” Tai said, adding that another former broker, Gabriel Gan, also knew about this.

“The code that we use for Richard Teng was ‘RT’,” Tai added.

Later in the trial, Soh’s lawyer senior counsel N Sreenivasan raised doubt over Tai’s allegations.

The defence counsel reasoned that if Tai had told CAD about Teng, as he had claimed, the authorities would have followed up on it.

“Mr Tai, John Soh never told you that Richard Teng was his source or giving him information. Agree or disagree?” Sreenivasan asked.

“I disagree,” Tai replied.

“Your Honour, I'm putting it as a matter of [Tai’s] credibility, that nobody believed him when he made such a far-fetched allegation,” Sreenivasan told the court.

In response to the allegation regarding its former chief regulatory officer, an SGX spokesperson on Feb 19 said: “The matter is before the court and a trial is ongoing. As such, SGX is unable to comment except to reiterate our continued support of the authorities and our cooperation with them since the time when investigations began.”

The Edge Singapore has also reached out to ADGM for comment.

The trial resumes on Wednesday.

What the 2013 Penny Stock Crash trial is about

John Soh Chee Wen is the alleged mastermind behind the penny stock crash of 2013, which prosecutors have called “the most audacious, extensive and injurious market manipulation scheme ever in Singapore”.

Together with his alleged co-conspirator and girlfriend Quah Su-Ling, Soh and his associates are alleged to have been behind the massive rise and sudden collapse of shares in Blumont Group, LionGold Corp and Asiasons Capital (now Attilan Group), which wiped out some $8 billion in market value.

Subscribers can click here to read our 8-page special pullout on the penny stock crash trial.

Don’t miss out on these highlights in the penny stock saga so far:

Third tranche of witnesses (From Jan 2, 2020)

• Witness Ken Tai admits to cheating alleged masterminds, making millions of dollars in market manipulation scheme
• John Soh threatened to 'run down' integrity of witnesses, claims former abettor Ken Tai
• Prosecution witness Ken Tai concedes alleged mastermind John Soh did not tell him to 'lie to' or 'mislead' authorities
• Counsels clash over possible impeachment of former abettor-turned-prosecution witness Ken Tai
• Prosecution witness Ken Tai admits to using omnibus accounts to hide illegal 'wash trades'
• Witness Ken Tai claims to have left queues in the system not for own benefit but to prevent 'haunted counters'
• Prosecution witness Ken Tai earned $8,588 worth of commissions in a day from 'churning' LionGold shares, defence counsel claims

Second tranche of witnesses (Oct 1, 2019 to Oct 31, 2019)

• John Soh trial resumes with a peek into deceit, betrayal in 'inner circle'
• Prosecution witness Ken Tai reveals more stock brokers involved in 'market rolling' web
• More tales of jealousy, betrayal emerge in penny stock trial
• Witness Ken Tai 'disgusted' by the way boss John Soh treated his closest allies
• Witness Ken Tai admits to market manipulation for his own gain after lengthy cross-examination
• IPCO office was 'admin centre' for penny stock scandal, witness reveals
• Prosecution witness reveals Quah Su-Ling seldom in IPCO office; says took instructions mostly from Goh Hin Calm
• CGS-CIMB, DBS Vickers deny knowledge of unauthorised third-party instructions
• Overseas calls from Malaysian phone number to Singapore 'traceable,' Singtel representative reveals
• Witness admits brokerage did not conduct internal investigation into accounts despite CAD, MAS probe
• Lawyers clash over 'incomplete' disclosure of data retrieved from phones linked to market manipulation scheme
• Court hears of 'empire' building dreams amid love triangle woes with John Soh
• Alleged penny stock mastermind John Soh target of pregnancy plot, defence counsels suggest
• John Soh's ex-lover took 'extreme actions,' witness reveals
• Witness makes series of contradictory statements, blames 'undue stress'
• Prosecution seeks to impeach 'hostile witness'

First tranche of witnesses (March 11, 2019 to May 24, 2019)

• John Soh, alleged mastermind behind penny stock crash arrested; to be charged on Friday
• John Soh, Quah Su-Ling and Goh Hin Calm set to be charged
• John Soh Chee Wen and Quah Su-Ling charged in largest market manipulation scheme in Singapore’s history
• Charges slapped on masterminds of penny stock scheme cast new light on old reports
• Prosecutors confirm links between ISR Capital and John Soh
• John Soh-linked ISR Capital’s CEO Quah Su Yin resigns
• Penny stock saga’s alleged mastermind John Soh denied bail; faces total of 188 charges
• John Soh could face longest-ever jail term for financial crime in Singapore
• John Soh's legal team from WongPartnership discharges itself
• John Soh's 'treasurer' Goh quits as interim CEO of IPCO
• Defence lawyers for alleged masterminds attempt to pin 2013 penny stock crash on forced selling
• 2013 penny stock crash case to go to trial
• Alleged 'treasurer' Goh Hin Calm to testify against Soh, Quah
• Penny stock crash scandal's 'treasurer' sentenced to three years' jail
• Goh Hin Calm confirmed as prosecution witness as penny stock crash trial kicks off
• The charismatic bankrupt who allegedly pulled the strings behind Singapore's largest stock manipulation scandal
• Inner workings of penny stock scandal revealed by first prosecution witness
• Prosecution witness coached by investigating officer, claims John Soh's lawyer
• Quah Su-Ling's lawyer accuses prosecution witness of 'inventing evidence', front-running
• Ex-remisier admits to conducting trades without third-party authorisation from account holders
• Ex-remisier Ng denies being coached; RHB trader Alex Chew admits to telling the whole truth only in third statement
• 'Fearful' prosecution witness admits even third statement might not have been the whole truth
• John Soh gave presentation on 'mothership' Blumont at LionGold's offices, says prosecution witness Andy Lee
• Prosecution witness Lee accused of lying and concealing facts in court
• New witness claims Quah Su-Ling was 'hysterical' when asked about settlement of losses
• More telephone records reveal Quah's hand behind trades; private bank Coutts wrote off $4.7 mil from penny stock crash
• Witness shocked by alleged breaches in trading regulations
• SGX restrictions could have caused 2013 penny stocks crash, says Lim & Tan director
• John Soh's former girlfriend had full control of bank account used in trading, court hears
• Quah's employee delivered cash payments for 8 accounts, court hears
• Witness cites 'clerical oversight' as defence alleges lack of anti-money laundering checks
• Ex-Maybank Kim Eng dealer admits Soh gave orders on trades in 3 accounts
• Counsels argue over how witnesses' conditioned statements were prepared and used
• Witnesses say John Soh, Quah Su-Ling directed 2013 stock manipulation trades