The Monetary Authority of Singapore (MAS) has imposed a civil penalty of $137,000 on Ang Yew Jin Eugene for insider trading of Alpha Energy Holdings’ shares. Alpha Energy is now known as Alpha DX.
Ang, a former non-executive director of Alpha Energy, sold 2.4 million shares in the company on Nov 13, 2019, when he knew that the group had failed to pay its loan to a lender and was asked to pay the entire principal sum immediately.
Alpha Energy Holdings only announced on Nov 18, 2019, that its creditor had declared the entire principal sum of US$64 million owed as immediately due and payable. The principal sum demanded was approximately 10 times the value of the company’s current assets as of June 30, 2019. Following the announcement, trading in Alpha Energy’s shares was suspended immediately.
Ang was a non-executive director of the company “at the material time” and knew of Alpha Energy’s failure to make repayment and that the creditor had a right to demand immediate payment of the principal sum. Ang had attended Alpha Energy’s nominating committee and remuneration committee’s meetings held during the FY2019 and resigned with effect from Nov 22, 2019.
By selling the shares in his parents’ trading accounts ahead of the announcement, Ang’s parents avoided losses of about $54,900.
He has admitted to contravening the insider trading provision under section 218(2)(a) of the Securities and Futures Act and has paid the civil penalty without court action. Ang also volunteered not to be a director or be involved in the management of a company for two years.
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The action against Ang came after a joint investigation by the Singapore Police Force’s Commercial Affairs Department and the MAS after a referral by the Singapore Exchange Regulation.
