A former finance director of Singapore-listed New Silkroutes Group was sentenced to 12 weeks in prison on Monday (Sept 16) after pleading guilty to manipulating its share prices to allow its shares to be used as consideration for corporate deals.
According to sentencing documents, William Teo Thiam Chuan, 55, played a “critical” role in the market-rigging scheme, which the prosecution alleged was masterminded by Goh Jin Hian, former chief executive of the investment holding firm.
On Sept 16, Teo pleaded guilty to six charges under the Securities and Futures Act for abetment by conspiracy over false trading and market-rigging transactions. Another 25 charges were taken into consideration.
Goh, 55, the son of former prime minister Goh Chok Tong, was chief executive of New Silkroutes from 2015 to 2020. In 2020, he also stepped down as non-independent and non-executive chairman of the group.
Teo, Goh, Kelvyn Oo Cheong Kwan, the group’s former chief corporate officer, and Huang Yiwen, the sole director of GTC Group, a commercial market maker that New Silkroutes had engaged, were handed in September 2023 a total of 132 charges related to false trading offences.
The pre-trial conference for Goh, Huang and Oo is scheduled on Sept 26.
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According to the prosecution, the four men carried out a “sophisticated, well-coordinated and effective” scheme between Feb 26, 2018, and Aug 27, 2018, to artificially push up the share price of New Silkroutes, “effectively (allowing the company) to use its shares as currency for corporate deals and acquisitions”.
The scheme was devised as “a quick and convenient way” to facilitate the company’s expansion by acquiring other companies and to raise capital through the issuance of new shares, the prosecution added.
New Silkroutes was initially in the businesses of oil trading, and electronic and
