SINGAPORE (May 14): John Soh Chee Wen’s former romantic partner, Adeline Cheng Jo-Ee, had full control over a bank account used to trade in shares related to the 2013 penny stock crash – even though she was not the beneficial owner, the court heard today.
Cheng has been named as a prosecution witness in the trial of Soh and Quah Su-Ling, the alleged masterminds behind the stock manipulation scandal, but has yet to be called to the stand.
In court on Tuesday, Hafeez Ahmad Choudry, Chief Risk Officer of Crédit lndustriel et Commercial (CIC), revealed that Cheng had full authority over a corporate account owned by a British Virgin Isle-registered company, Carlos Place Investment Limited.
Cheng was both the authorised signatory of Carlos Place and the representative of its appointed external asset manager, Alethia Asset Management (AAM).
During cross-examination by senior counsel N Sreenivasan, who is leading the defence for Soh, Hafeez admitted that it could be problematic for Cheng to have full authority to trade with the account, as she was not the beneficial owner of the Carlos Place account.
“Do you agree that in terms of compliance, someone who is not the beneficial owner having total control of the account can create some problems?” asked Sreenivasan.
“Yes it could,” Hafeez replied.
Further, Hafeez told the court that Cheng was both the donor (giver) and donee (receiver) of the powers of attorney for the Carlos Place account. He also admitted that it was “not prudent” to do.
However, Hafeez explained that the beneficial owner of the account, Ooi Cheu Kok, had appointed Cheng to do so. He also agreed that Ooi had given Cheng the necessary mandates.
“So what the bank accepted was a person, who is not the beneficial owner, to have full authority in relation to the account,” suggested Sreenivasan.
“We were looking at this in totality. It was clear that she knew [Ooi] quite well, and she was his introducer. She was also a representative of AAM, and this puts her in the position to be signatory of the account,” Hafeez said.
He later disagreed when Sreenivasan put it to him that CIC was “inconsistent” in its concern about the ‘Know Your Client’ policies when it dealt with the Carlos Place account.
Sreenivasan also asked Hafeez if he knew about Soh prior to the crash, to which Hafeez replied in the negative.
“Why do you talk about someone you don’t know?” demanded Sreenivasan.
“Because I was told to appear before the prosecution in this case,” Hafeez answered.
Sreenivasan again pointed out that Hafeez had mentioned Soh and Quah in his condition statement, even though Soh and Quah were at no time mentioned as persons with power of attorney for the Carlos Place account.
“[Again,] why are you talking about someone you don’t know?” Sreenivasan thundered.
“Like I said, I was called by the CAD (Commercial Affairs Department) to appear before the prosecutor in relation to the Carlos Place account with CIC. And during the course of the interviews, I was asked if these two individuals were ever part of the arrangements with CIC,” Hafeez answered patiently.
The trial resumes May 16.
2013 Penny Stock Crash
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.
For the latest updates on this developing story, visit http://dedge.news/crash
Don’t miss out on these highlights in the penny stock saga so far:
- 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
