In Singapore, a major stock manipulation case culminated with a Malaysian businessman and his Singaporean partner receiving a collective 56-year prison sentence. The businessman, John Soh Chee Wen, was sentenced to 36 years in prison after being found guilty of orchestrating a stock scam that erased S$8 billion ($8.75 billion) from Singapore’s stock market. His accomplice, Quah Su-Ling, received a 20-year sentence.
Both were convicted of manipulating the share prices of three companies by utilizing over 180 trading accounts, in what was described by High Court judge Hoo Sheau Peng as a sophisticated and complex scheme. The judge noted that the duo’s actions, which demonstrated an in-depth understanding of the securities and financial markets, resulted in immense harm and a stock market crash that shook investor confidence and impacted trading volumes the following year.
The prosecution highlighted the severity of the manipulation, labeling it the most egregious instance of market manipulation in Singapore’s history. During the trial, it was revealed that Soh and Quah used manipulated shares as collateral to secure over S$170 million in credit from banks, including Goldman Sachs, to further fuel their scheme. This led to a dramatic increase in penny stock prices, with some surging by approximately 800% in 2013, before crashing on October 4th of the same year, leading to a significant loss of market value.
Soh and Quah were convicted on a vast majority of the charges brought against them and have indicated plans to appeal the court’s decision. The case serves as a stark reminder of the potential repercussions of fraudulent activities in the financial markets and underscores Singapore’s commitment to maintaining the integrity of its financial systems.
