SINGAPORE (Mar 3): Former Phillip Securities remisier Henry Tjoa admitted to raking in some $1 million in commissions from rolling the shares of LionGold Corp, Blumont Group and Asiasons Capital (now Attilan Group) over the course of a year.
However, taking the stand today as a prosecution witness in the trial of alleged 2013 penny stock crash masterminds John Soh Chee Wen and Quah Su-Ling, Tjoa said he was unsure of the exact amount he pocketed.
Prior to being declared a bankrupt in May 2017, Tjoa was one of the “inner circle” of brokers and remisiers used by Soh and Quah to allegedly manipulate shares in the three counters. The eventual collapse of the counters had wiped out some $8 billion in market value.
Senior counsel N Sreenivasan of K&L Gates Straits Law, who is Soh’s defence counsel, attempted to pin down inconsistencies between Tjoa’s stances and those of former prosecution witness Ken Tai Chee Ming.
Tai, another “inner circle” broker, had introduced Tjoa to Soh and Quah back in 2011.
“You have in the course of giving evidence said that Tai was frequently giving you instructions on all the BAL shares from mid-2012? Do you confirm that that’s your position?” asked Sreenivasan.
Tjoa agreed. Further, he added that he did not conduct trades without any instructions from concerned parties such as Tai, Soh, Quah, or trading representatives such as Dick Gwee Yow Pin and Gabriel Gan.
The court later heard that Tjoa had been aware of entering trades in which he was aware of Tai being the “counterparty” – the person who was on the opposing side waiting to buy the shares Tjoa had sold.
Sreenivasan flagged that Tjoa’s knowledge of the identity of the counterparty made these transactions illegal.
“The reason why what you were doing was illegal, was because you were coordinating with Tai. You knew you were taking instructions and putting shares into the market so one of Tai’s accounts could be the counterparty,” said Sreenivasan.
Tjoa agreed, and said he was aware when Tai and Gan were “counterparties” in his trades.
However, he insisted that he did not participate in a “scheme” with Tai to pocket commissions.
In particular, Sreenivasan zeroed in on a transaction that took place on the morning of Oct 4, 2013 – just before the crash.
On this day, Tai had sold a total of 80,000 Asiasons shares, which Tjoa had then purchased through an account belonging to Goh Hin Calm – the alleged “treasurer” to Soh and Quah.
Just half an hour later, Tjoa had sold a total of 200,000 Asiasons shares belonging to Goh, resulting in a loss of $213,000.
“Are you aware that Tai avoided a very big loss by selling 80,000 shares to Goh?” asked Sreenivasan.
Tjoa denied any knowledge. “At that time, we were just doing the rolling over [of shares]. But my concern was when the market started falling, I was very worried then because I could not get hold of Soh and Quah,” he said.
Destroying evidence
Sreenivasan then asked about disposable phones used by Tjoa and his three assistants, which were purportedly destroyed after the crash.
“I threw mine and my assistants’ phone into the sea in East Coast. I was alone, I drove there alone and threw the phones [into the sea],” said Tjoa.
To this, Sreenivasan brought the court’s attention to Tai’s conditioned statement which stated that Tai had collected phones from Tjoa and his assistants, among others, and disposed of them.
“You were getting rid of evidence that was pertinent to investigations,” said Sreenivasan. ”Tai, at least, must have been concerned about the investigations otherwise there would have been no reason to throw the phones away.”
“I put it to you that this is a made-up story where you and Tai got mixed up about who is supposed to be the protagonist,” Sreenivasan added.
Tjoa also claim to have reformatted the central processing unit (CPU) of his computer in the Manhattan House office at Mohamed Sultan Road for the “safety” of records of rollovers of shares.
This was done under the recommendation of Tai, said Tjoa.
When grilled by Sreenivasan on the possibility of things inside the desktop that had to be hidden, Tjoa said that he did not know what was inside the computer as he seldom used it.
“The trades itself would have been captured by SGX, so you can’t hide the trades. You can’t hide the parties making the trades. So there must be something in the local CPU in the Manhattan House computers that you all were trying to hide, right?” asked Sreenivasan.
Again, Tjoa denied having knowledge of any such information, as his assistants were the ones who used the computer.
The trial will resume on Wednesday, when Sreenivasan will continue his cross-examination of Tjoa.
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)
- Prosecution witness Tjoa says feared being charged for market manipulation
- John Soh claimed ex-SGX chief regulator Teng fed him updates on CAD probe: Prosecution witness
- 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
