SINGAPORE - The Monetary Authority of Singapore (MAS) has on Thursday obtained a default judgment for $100,000 against Mr Ong Beng Hock for false trading.
He allegedly contravened sections 197 and 198 of the Securities and Futures Act (SFA), which prohibit false trading and market manipulation respectively.
On two occasions on Dec 29, 2006 and April 26, 2007, Mr Ong executed a total of 12 wash trades in two of his trading accounts. These were purchases and sales of shares of Ipco International Ltd and Goldtron Ltd which did not involve any change in beneficial ownership.
The matter was referred to MAS by Singapore Exchange Securities Trading Limited.
MAS claims that Mr Ong's wash trades were "intended or likely to create a false or misleading appearance with respect to the market for, or the price of, the shares in the two corporations".
"Mr Ong had also engaged in the wash trades to push up the last traded price of the shares to his desired target selling price, with the intent to induce other buyers to purchase the shares from him at that price," added MAS.
MAS sought a civil penalty court action against Mr Ong for a sum of $100,000 for the contraventions. As he did not contest the action, the court awarded a default judgment of $100,000 to MAS.