SINGAPORE: The Monetary Authority of Singapore (MAS) has imposed a S$137,000 civil penalty on former Alpha Energy Holdings Limited (AEHL) non-executive director Ang Yew Jin Eugene for insider trading involving the company’s shares.
The company is now known as Alpha DX Group Limited.
According to a joint statement by the MAS and the Singapore Police Force (SPF) on Monday (Nov 17), Mr Ang sold over 2.4 million company shares held on his parents’ accounts on Nov 13, 2019.
The former AEHL director knew the group had failed to repay the loan and that the creditor, under the agreement, had the right to demand immediate payment of the full principal sum.
AEHL announced on Nov 18, 2019, that its US$64 million (S$83.30 million) debt was due immediately. The principal sum demanded by the creditor was roughly ten times the company’s assets as of June 30, 2019, prompting an immediate suspension of trading AEHL’s shares.
With this, Mr Ang, using his parents’ trading accounts, avoided losses of about S$54,900 by selling the shares before the announcement.
Mr Ang admitted to contravening the insider trading provision under section 218(2)(a) of the Securities and Futures Act and paid the civil penalty without court action. He also volunteered to stay away from being a director or being involved in the management of a company for two years.
The civil penalty action against Mr Ang follows a joint investigation by SPF’s Commercial Affairs Department and MAS, after a referral by the Singapore Exchange Regulation. /TISG
