The Monetary Authority of Singapore (MAS) has imposed a civil penalty of $350,000 on one Gui Boon Sui @ Goi Chon Yan for false trading in the shares of two listed companies between Dec 2018 and Aug 2022.
In a joint statement on Jan 13 by the MAS and the Commercial Affairs Department, Gui artificially inflated the prices of property firm Hiap Hoe and hotel operator Hotel Grand Central by using trading accounts under the names of two of his employees, as well as via his own accounts.
By doing so, Gui has flouted section 197(1)(b) and section 201(b) of the Securities and Futures Act. He will pay MAS the civil penalty without court action. He has also given an undertaking not to be a company director or be involved in the management of a company for two years.
The joint statement did not indicate the gains Gui made from the false trading activities.
As of Jan 13, Gui is listed on the website of Regency Steel Asia as its chairman. The company was formed in 2004 with the acquisition of Hong Leong Asia 's structural steel division and is a subsidiary of Japanese conglomerate Mitsui.
Gui in Oct 2017 emerged as a substantial shareholder of Hiap Hoe, owning 5% of the shares. According to Bloomberg data, Gui now holds a 5.72% stake in Hiap Hoe.
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The civil penalty action is the result of a joint investigation conducted by the Commercial Affairs Department of the Singapore Police Force and MAS, following a referral from the SGX RegCo, the market's frontline regulator.
