SINGAPORE: Samtrade FX CEO Goh Nai De, chief technology officer (CTO) Goh Li Xing and head of dealing and strategy Alfred Yue Jingyuan were charged in court on Wednesday (Dec 17) for engaging in fraudulent practices and money laundering, the Singapore Police said in a press release on Wednesday (Dec 17).
The three executives allegedly engaged in a conspiracy in which Alfred Yue manipulated trades in 11 “Ultimate Trader” accounts used in the platform’s copy trading product, which allows clients to “copy” trades executed by certain trading accounts, to make them appear profitable.
Between Jan 1 and Dec 27, 2021, the police said Alfred Yue adjusted the bid-ask spreads in these accounts to make copied trades appear profitable without clients knowing that they were fraudulently “tilted”. In trading, a bid-ask spread is the difference between the bid price, or the highest price a buyer is willing to pay, and the ask price, or the lowest price a seller is willing to accept, for an asset.
During the same period, Goh Nai De, Goh Xi Ling, and Alfred Yue received S$8.7 million, S$4.8 million, and S$650,000, respectively, from the alleged fraudulent practices, funds deposited by clients who copied the fraudulently “tilted” trades.
Goh Nai De faces 11 counts each of fraudulent practices and money laundering offences. Goh Li Xing faces 11 counts of fraudulent practices and seven of money laundering offences, while Alfred Yue faces 11 counts of fraudulent practices and eight of money laundering offences.
Engaging in fraud practices under the Securities and Futures Act carries up to seven years’ jail, a fine of S$250,000, or both. Money laundering offences under the Corruption, Drug Trafficking and Other Serious Crimes Act carry up to 10 years’ jail, a fine of S$500,000, or both.
Channel News Asia reported that investigations began in January 2022 after suspicions of irregular trading activities. /TISG
