MAS Secures First Convictions for Front-Running in Insider Trading Case

The Monetary Authority of Singapore (MAS) has secured its first-ever convictions for front running as an insider trading offence. 

In a judgment from Singapore’s State Court, Leong Chee Wai, E Seck Peng Simon and Toh Chew Leong, were charged with a total of 333 counts of insider trading, and sentenced to imprisonment for 36 months, 30 months and 20 months respectively.

The three accused were representatives of Capital Market Services Licence holders when they committed the offences. Leong and E were senior equity dealers with First State Investments (Singapore) (FSIS) and colluded to profit from price-sensitive confidential information: Leong would receive the information and pass it on to E who would then use his personal trading account to place orders ahead of FSIS’s order in an act of front-running. Toh joined the trading desk at a later stage and subsequently joined in with the illicit activity. 

Further to the sentencing, the three have been fined and have received Prohibition Orders, which prevent them from performing regulated activities under the SFA for periods between 13 and 15 years. 

Commenting on the judgment, Loo Siew Yee, Assistant Managing Director at MAS said:

“The three individuals had colluded to misuse confidential information for personal gain, thereby undermining market integrity. MAS will pursue insider trading charges against individuals involved in front running in appropriate cases and ensure that those guilty of such misconduct are kept out of the industry as warranted.”