Singapore, 7 October 2019…Mr Jimmy Ng Kian Bin (Mr Jimmy Ng) and Mr Erik Ng Song Hann (Mr Erik Ng) were today convicted and sentenced to 16 weeks’ and 4 weeks’ imprisonment respectively for fraud and dishonest conduct in relation to the trading of futures contracts. Their convictions were a result of a joint investigation conducted by the Monetary Authority of Singapore (MAS) and the Commercial Affairs Department of the Singapore Police Force. The case was referred to MAS by Singapore Exchange Derivatives Trading Limited (SGX-DT).
Mr Jimmy Ng was charged under section 210(a) of the Securities and Futures Act (SFA) for employing a scheme to defraud others in the trading of futures contracts and under section 330(1)(a) of the SFA for furnishing a false statement to SGX-DTAll the offences under section 330(1)(a) of the SFA referred to in this case were by way of a conspiracy punishable under section 109 of the Penal Code (PC). . He pleaded guilty and was convicted on three charges. Two remaining charges under section 210(a) of the SFA were taken into consideration for the purpose of sentencing. Mr Jimmy Ng was sentenced to a total of 16 weeks’ imprisonment for the charges.
Mr Erik Ng was charged under section 210(a) of the SFA for employing a scheme to defraud others in the trading of futures contracts and under section 330(1)(a) of the SFA for furnishing a false statement to SGX-DT. He pleaded guilty and was convicted on two charges, with two remaining charges taken into consideration for the purpose of sentencing. Mr Erik Ng was sentenced to 4 weeks’ imprisonment.
The court proceedings against a third individual in the case, Mr Joseph Chai Ming LeongMr Chai faces 2 charges under section 330(1)(a) SFA. (Mr Chai), are ongoing.
Ms Loo Siew Yee, Assistant Managing Director (Policy, Payments & Financial Crime), MAS, said, “The convictions of these two individuals show MAS’ resolve to pursue individuals who engage in fraudulent conduct in our capital markets. And we will take stern actions to bring them to task.”
Background to the case
Mr Jimmy Ng and Mr Erik Ng were traders of Joerik Financial Pte Ltd (Joerik), a proprietary trading company and an SGX-DT trading member. At the material time, Mr Erik Ng and Mr Chai were directors of Joerik.
On 24 and 27 July 2015, Mr Jimmy Ng repeatedly entered and deleted a series of buy and sell orders for SGX MSCI Singapore Index July 2015 Futures Contracts (SGN15)SGN15 was a futures contract listed on SGX-DT whose underlying instrument was the MSCI Singapore Free Index, a free float-adjusted and market capitalization-weighted index of large and medium capitalization stocks traded on the Singapore Exchange with contract month ending in July 2015. which he had no intention to fill. This created the illusion of buying or selling interest in SGN15 and induced other market participants to trade against him on the opposite side of his fictitious orders, at prices that were more favourable to him. Mr Jimmy Ng had thereby employed a scheme to defraud these market participants with the fictitious orders.
On or around 28 July 2015, in response to a query from SGX-DT on Mr Jimmy Ng’s trading activities in SGN15, Mr Jimmy Ng conspired with Mr Erik Ng and Mr Chai to furnish a false reply to SGX-DT. The reply claimed that Mr Jimmy Ng was conducting algorithm trading in SGN15, and that he had intended to fill the ficitious buy and sell orders. Mr Jimmy Ng had thereby furnished a false statement to SGX-DT with the intent to deceive it about his trading activites in SGN15.
On 29 August 2016, Mr Erik Ng traded in SGX MSCI Taiwan Index August 2016 Futures Contracts (TWQ16)TWQ16 was a futures contract listed on SGX-DT whose underlying instrument was the MSCI Taiwan Index, a free float-adjusted and market capitalization-weighted index representing a sampling of large, medium and small capitalization stocks of the Taiwan stock market with contract month ending in August 2016. in the same manner as described in paragraph 7. He had thereby employed a scheme to defraud the market participants who traded against him with the ficititious orders.
On or around 1 September 2016, in response to a query from SGX-DT on Mr Erik Ng’s trading activites in TWQ16, Mr Erik Ng conspired with Mr Chai to furnish a false reply to SGX-DT. The reply claimed that Mr Erik Ng was engaged in arbitrage trading between the Taiwan Stock Exchange Capitalization Weighted Stock Index (TAIEX) futures contracts and the mini-TAIEX futures contracts. Mr Erik Ng had thereby furnished a false statement to SGX-DT with the intent to deceive it about his trading activites in TWQ16.