SINGAPORE (Jan 10): Prosecution witness Ken Tai Chee Ming has admitted to using omnibus accounts to prevent authorities from detecting his illegal “wash trading” activities.
Further, Tai revealed that he had engaged in this practice even though John Soh Chee Wen and Quah Su-Ling – the alleged masterminds behind the 2013 penny stock crash, whom Tai was supposedly taking instructions from – had specifically ordered him to avoid wash trades.
A wash trade involves a trade made by an account holder to sell and buy the same stock, thus manipulating the market by artificially creating a misleading illusion of activity in the market.
By using an omnibus account, which combines transactions of a group of accounts in the name of the brokerage firm instead of individual account holders, Tai confessed that he believed this would create an “additional layer” to avoid detection.
Under cross-examination by Quah’s defence counsel, Philip Fong of Eversheds Harry Elias, Tai agreed that Quah was worried about “hitting” their own accounts.
In his conditioned statement, Tai had also given examples of Soh and Quah telling him not to use certain accounts on certain days so as to avoid wash trades.
“It makes sense to avoid wash trades because wash trades would be an automatic red flag to the regulator,” Fong suggested. “And it would be easy to get caught if one undertakes wash trade.”
Tai agreed.
“You did it knowing full well this is precisely what Quah wants to avoid and something that she specifically instructed you not to do,” observed Fong.
Tai “partially” agreed with this suggestion. Later, he added that did not inform Quah about this since the trades were made under the omnibus account.
Drawing reference to trades made on Sept 11, 2012, Fong put forth that Tai had made a wash trade at his own initiative, and not under Quah’s instructions as he had previously claimed.
“You keep insisting that any instructions given to you [by Quah] on these wash trades were by [Blackberry messages or calls],” Fong said. The defence counsel then proceeded to show that there were no calls made between Quah and Tai during that period.
However, Tai disagreed. “It is a fact that they know I placed the order… [but] they don’t know which account I used to place the order,” Tai explained.
Fong called these assertions “a total fabrication”. “Your story about receiving messages [from Quah] through Blackberry messages is a total lie,” he added.
Again, Tai disagreed.
The trial will resume on Jan 14 with Fong continuing his cross-examination of Tai.
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
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
