MAS Imposes $100,000 Civil Penalty on Mdm Tan Su Lan over False Trading

The Monetary Authority of Singapore (MAS) has imposed a civil penalty of $100,000 on Mdm Tan Su Lan for false trading in the shares of Aspial Corporation Limited (ACL) and Far East Orchard Limited (FEOL).

Mdm Tan had executed her trades in a manner that was likely to create a false appearance with respect to the price of the shares, and was reckless as to whether the trades would be likely to create such a false appearance. In doing so, she had contravened section 197(1A)(b) of the Securities and Futures Act. Mdm Tan has admitted liability for her actions and paid MAS the civil penalty.

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Mdm Tan had pledged ACL and FEOL shares as collateral for share margin purposes. For three consecutive days in May 2016, Mdm Tan purchased shares in ACL and FEOL near or during the close of the days' trading sessions, resulting in her purchases artificially raising and setting the closing prices of these shares on all three days. As the closing prices of these shares had an impact on the value of her collateral, her collateral value increased correspondingly.