Charges have also been tendered against Goh Hin Calm, a key accomplice of Soh and Quah, according to a joint statement by the MAS, Singapore’s Attorney-General’s Chambers and the Commercial Affairs Department of the Singapore Police Force.
Soh and Quah face various charges. They include exploiting more than 180 trading accounts to create an illusion of liquidity and demand for the shares of Blumont Group, Asiasons Capital (now Attilan Group) and LionGold Corp between 1 August and 3 October 2013 and manipulating the share prices of the stocks during that period.
Goh was charged for intentionally aiding Soh and Quah for creating false liquidity and demand, the statement added.
Data from Bloomberg shows that shares of Blumont rose by more than 800% from 4 January-3 October 2013. LionGold and Attilan’ share prices rose by 43% and 246%, respectively.
On October 4, the three share prices plunged by around 44-65%. On October 11, prices further dropped, wiping out almost 100% of their October 3 values.
“This is the largest market manipulation case in Singapore’s history,” the statement said.
Soh and Quah also conspired to deceive Goldman Sachs International and Interactive Brokers, getting them to extend around $170m in margin financing to their accounts by providing Blumont, Asiasons and LionGold shares as collateral to secure the extension of such credit, according to the statement.
The MAS and CAD said they raided around 50 locations and interviewed 70 people. The investigations covered documentary evidence comprising over 2 million emails, half a million trade orders and thousands of telephone records and financial statements.
The investigations against nominee account holders and trading representatives who may have facilitated the fraud are still ongoing, according to the statement. These individuals include directors and members of senior management in Blumon, Asiasons, LionGold and their related companies.
Soh is a Malaysian who has been an undischarged bankrupt (limiting political and business activities and credit) since 2002, the statement said. During the incident, Quah was a director and the CEO of IPCO International, while Go was the company’s senior finance and administration manager.
IPCO is an international developer, turnkey contractor and investor in oil and gas, power, transportation, water and environment and industrial infrastructure projects, according to information on the company’s website.
