SINGAPORE: Breaking the news today is the trial of Dr Goh Jin Hian, the son of former prime minister Goh Chok Tong and the former chief executive officer of the investment holding company New Silkroutes Group (NSG), due to false trading. It was revealed that the 57-year-old conspired with other executives from NSG, which is a publicly traded company, to boost its share price, since the company’s business strategy depends on a high share price.
The crime of false trading was committed by Dr Goh himself, and he claimed trial to all the charges against him, together with the former executive director and chief corporate officer of NSG, Kelvyn Oo Cheong Kwan. Both of them face 31 charges of conspiring to create a misleading appearance of NSG’s share price. Furthermore, Dr Goh also faces eight charges of “doing things with the purpose of creating a misleading appearance of NSG’s share price.”
How the crime happened
According to case details, the two men worked with former NSG finance director William Teo Thiam Chuan and market maker Huang Yiwen. To create the misleading appearance of NSG’s share price, they placed orders and executed trades for NSG shares over 31 dates between February 26, 2018 and August 27, 2018. Huang also placed orders and executed trades for NSG shares in the trading account of GTC Group for 30 days as part of the conspiracy.
Moreover, Dr Goh suspiciously placed orders and executed trades for NSG shares in his personal trading account for five days, and Teo placed orders and executed trades for NSG shares using NSG’s share buyback trading accounts for 13 days.
As per the prosecution, NSG’s strategy was dependent on a high stock price, and dropping the share price could ruin the planned deals of the Group.
NSG used its shares like money—handing them out for buying clinics and suppliers, or selling new ones to raise funds. In just 10 months (May 2017–February 2018), they issued or promised over 100 million shares at 44–66.7 cents each, said Mr Malhotra. This primed the pump for the trading halt, suspension, and alleged manipulation that came next.
The prosecutors say NSG’s strategy depended on a high stock price. A dropping price could ruin their planned deals. This led to the pressure to match the high stock prices that the company had pledged to use, causing the suspects to artificially boost NSG’s share price.
The trial for this case continues, and if these men are convicted, they will face imprisonment of up to seven years and /or a fine of up to S$250,000 for each charge.
