Court Cases
New Silkroutes Group ex-director jailed for market rigging; Prosecutors label Goh Jin Hian as ‘mastermind’
Teo Thiam Chuan William, former finance director of New Silkroutes Group (NSG), was sentenced to 12 weeks in jail on 16 September for his involvement in a market rigging scheme. The prosecution labeled co-accused Goh Jin Hian, former CEO and son of ex-Prime Minister Goh Chok Tong, as the “mastermind” behind the conspiracy to inflate NSG’s share price from S$0.285 to S$0.50 in 2018.
SINGAPORE: Teo Thiam Chuan William, the former finance director at New Silkroutes Group (NSG), has been sentenced to 12 weeks in jail on Monday (16 September) in court for his role in a market rigging scheme.
This sentencing marks the first revelation of case details as Teo is the first among four co-accused to plead guilty.
During sentencing argument, the prosecution has labeled former CEO Goh Jin Hian as the “mastermind” behind the scheme.
Teo, 55, pleaded guilty to six charges under the Securities and Futures Act for abetment by conspiracy over false trading and market rigging transactions.
Goh, the son of former Prime Minister Goh Chok Tong, is alleged to have led a conspiracy to inflate NSG’s share price from S$0.285 to S$0.50 in 2018.
NSG, an investment holding company listed on the Singapore Stock Exchange (SGX) since 2002, operates subsidiaries in oil trading, information technology, and healthcare.
As the finance director, Teo was responsible for managing the company’s accounts, overseeing funding, mergers, and acquisitions. He also controlled NSG’s corporate securities trading accounts and was authorized to conduct share buybacks.
The co-accused in the case include Oo Cheong Kwan Kelvyn, 53, who was the executive director and chief operating officer of NSG, and Huang Yiwen, 40, the sole director of the commercial market maker GTC Group.
Originally, NSG focused on oil trading, electronics, and IT product distribution.
In December 2016, the company expanded into healthcare by acquiring clinics and medical supply companies. These acquisitions were primarily financed through the issuance of NSG shares.
However, in 2017, NSG’s efforts to acquire additional companies and raise capital through private placements were hampered by a decline in its share price.
From January to May 2017, NSG’s share price fluctuated between S$0.70 and S$0.90. However, it dropped to approximately S$0.40 to S$0.50 in June and fell further to a low of S$0.285 in November.
On 29 November 2017, NSG applied to halt trading of its shares, which led to a trading suspension a few days later. During the suspension, which lasted until 25 February 2018, NSG entered into several corporate transactions involving potential new share issuances.
On 21 February 2018, NSG proposed a placement of over 11 million new shares at S$0.44 per share to an external investor, Dr Andrew Chua Soon Kian, aiming to raise S$5 million. This placement was completed in March 2018.
Additionally, in February 2018, NSG announced a memorandum of understanding with Mr Shen Yuyun to acquire two medical supply companies in Shanghai, planning to issue new shares at S$0.50 each for the S$65 million acquisition.
The same month, NSG also disclosed a memorandum of understanding with Haitong International Securities, where Haitong would subscribe to a S$5 million convertible bond issued by NSG. The bond, maturing in two years, would offer an annual interest rate of 5 percent.
Prosecution Alleges Complex Scheme to Manipulate NSG Share Prices Using Multiple Accounts
While trading was suspended, Teo and his three co-accused allegedly engaged in a scheme to artificially inflate the price of NSG securities, according to the prosecution.
The scheme, as outlined by the prosecution, employed three primary methods: using GTC’s trading account to place and execute orders for NSG securities, utilizing NSG’s share buyback accounts for similar trades, and leveraging Goh Jin Hian’s personal trading account for additional transactions.
As a commercial market maker registered with SGX, GTC was prohibited from manipulating share prices. Market makers are typically required to enhance trading liquidity by providing competitive bid-ask quotes continuously within an agreed-upon spread.
Despite this, Teo, Goh, and Oo are alleged to have hired GTC to artificially boost and maintain NSG’s share price, masquerading as legitimate market-making activities. This manipulation aimed to enhance investor confidence and facilitate the completion of announced corporate transactions, as well as support future share placements.
On 4 February 2018, Goh reportedly instructed Teo to find a market maker to support NSG’s share price. Subsequently, NSG engaged GTC between 21 and 28 February 2018.
Goh, Teo, and Oo allegedly set a target price of S$0.50 for GTC to achieve.
Over the course of six months, starting from late February 2018, the four men are said to have conducted the market-rigging scheme.
Goh and Co-Accused Allegedly Discussed Timing and Pricing for NSG Trades
They communicated via text messages and emails to coordinate their actions, including timing and pricing for NSG securities trades. For instance, Goh allegedly urged Teo to place bids at specific times and requested that GTC be reminded of their target price of S$0.50 in an email.
In a group chat, Goh is said to have suggested delaying GTC’s payment until the share price reached S$0.40 by May.
The trading suspension on NSG shares was lifted after the market closed on 25 Feb 2018. The following morning, Teo and his co-accused allegedly strategized to boost the opening share price of NSG to reach their target.
According to the prosecution, Huang used GTC’s trading account to place buy orders during the pre-market routine before trading officially began at 9 am.
On 26 Feb 2018, NSG shares opened at S$0.390, representing a 36.84 percent increase from the last traded price of S$0.285.
Teo and Huang continued to place orders and execute trades in early March 2018 to further artificially inflate the share price.
The prosecution sought a 12-week jail sentence for Teo, describing the scheme as “sophisticated, well-coordinated, and effective” in manipulating the price of NSG shares to facilitate corporate transactions. They emphasized that Teo played a “critical role” as finance director in the scheme.
The prosecution noted that the scale of the market rigging was significant, causing “great distortion” in the market for NSG securities.
Pre-Trial Conferences for Goh, Huang, and Oo Set for 26 September
On the 31 days covered by Teo’s charges, the trades and orders executed by Teo, Huang, and Goh accounted for 28.78 percent of the total market volume of buy trades.
Additionally, they set the intraday high on 11 trading days and increased the closing price of NSG securities on 22 trading days.
The prosecution argued that the scheme was a “concerted and successful effort” to make NSG shares appear more attractive than they would have under normal market conditions.
It was intended as a “quick and convenient way” to support NSG’s expansion and raise capital through new share issuances. The use of GTC was described as creating “a veneer of legitimacy” for their manipulative trades.
Although Goh was identified as the mastermind, prosecutors highlighted Teo’s important role as the main liaison between NSG and Huang.
Teo is set to begin his jail term on Wednesday (18 Sept).
The cases for Goh, Huang, and Oo are currently at the pre-trial conference stage, with the next session scheduled for 26 September. Court records indicate that Huang intends to plead guilty.
Court Cases
PSP seeks greater clarity from AGC on prosecutorial decisions against ex-minister Iswaran
Following former Transport Minister Iswaran’s sentencing to 12 months in jail on 3 October, the Progress Singapore Party (PSP) issued a statement expressing its anticipation for clarity from the Attorney-General’s Chambers regarding prosecutorial decisions, given the high public interest. On 24 September, the AGC cited litigation risks in amending Iswaran’s charges but affirmed the case’s merit.
SINGAPORE: Following the sentencing of former Transport Minister Iswaran to 12 months in jail by Singapore’s court, the alternative party Progress Singapore Party (PSP) has issued a statement expressing concern over the ruling.
In a statement released at noon on 3 October, Ms Hazel Poa, Secretary-General of the PSP, noted that Mr Iswaran, who is also a former Member of Parliament from the ruling People’s Action Party (PAP), was sentenced for four counts of obtaining gifts as a public servant under Section 165 of the Penal Code 1871, and one count of obstructing justice under Section 204A of the same code.
Ms Poa, who is also a Non-Constituency Member of Parliament, stated that, given the high level of public interest in this case, the PSP looks forward to receiving greater clarity from the Attorney-General’s Chambers (AGC) regarding its prosecutorial decisions at the appropriate juncture.
On the morning of 3 October, the court granted Iswaran’s request to surrender himself at 4 p.m. on 7 October to begin serving his sentence.
However, his lead lawyer, Davinder Singh, indicated that the start of the sentence could be delayed depending on “instructions,” hinting at the possibility of an appeal.
Iswaran admitted to accepting valuable gifts from prominent businessmen, including Ong Beng Seng, chairman of Singapore GP, and David Lum Kok Seng, managing director of Lum Chang Holdings, while holding public office.
These gifts, which included private flights and other benefits, were worth over S$400,000 in total.
The 35 charges against Iswaran were amended by the prosecution on 24 September from corruption to lesser offences under Section 165, which pertains to public servants receiving valuable items in connection with their official duties.
The court also took into account Iswaran’s admission of obstructing the course of justice, for which he had repaid over S$5,000 to Singapore GP for a business-class flight he had taken at Ong’s expense.
The remaining 30 charges were taken into account during sentencing.
Iswaran had originally faced 35 charges, including two counts of corruption.
The charges were amended from two counts of corruption under the Prevention of Corruption Act (PCA) to offences under Section 165.
This section, unlike Section 8 of the PCA, does not include a presumption of corruption, which would have placed the burden on the accused to prove the gifts were not given as inducements.
The AGC in an explanation cited substantial evidentiary risks in proving the original corruption charges, which involved Ong Beng Seng and Lum Kok Seng.
The AGC noted that proving the original corruption charges under PCA would have been difficult due to the involvement of both Iswaran and Ong as primary parties.
Both would have had to implicate themselves to establish corrupt intent.
The AGC explained that “there are two primary parties to the transactions, and both would have an interest in denying corruption in the transactions.” This made securing a conviction for corruption highly uncertain.
In light of these risks, the AGC amended the charges to offenses under Section 165 of the Penal Code, which carries a lower evidentiary threshold and a reduced maximum sentence of two years’ imprisonment.
According to AGC, the amendment was made to ensure a fair and just outcome while considering public interest.
Court Cases
Former Transport Minister Iswaran sentenced to 12 months’ imprisonment after pleading guilty to corruption-related charges
Former Transport Minister Iswaran has been sentenced to 12 months in jail after pleading guilty to amended charges of accepting gifts worth over S$400,000 from businessmen while in public office. The court emphasised the need for general deterrence, noting that Iswaran’s conduct had damaged public trust.
Former Transport Minister Iswaran has been sentenced to 12 months in jail after pleading guilty to four amended charges under Section 165 of Singapore’s Penal Code and one charge of obstructing the course of justice under Section 204A(a) of the Penal Code.
Previously, the prosecution sought a jail term of six to seven months, while the defence requested that Iswaran’s aggregate sentence not exceed eight weeks.
Iswaran admitted to accepting valuable gifts from prominent businessmen, including Ong Beng Seng, chairman of Singapore GP, and David Lum Kok Seng, managing director of Lum Chang Holdings, while holding public office. These gifts, which included private flights and other benefits, were worth over S$400,000 in total.
The 35 charges against Iswaran were amended by the prosecution on 24 September 2024 from corruption to lesser offences under Section 165, which pertains to public servants receiving valuable items in connection with their official duties. The court also took into account Iswaran’s admission of obstructing the course of justice, for which he had repaid over S$5,000 to Singapore GP for a business-class flight he had taken at Ong’s expense.
The remaining 30 charges were taken into account during sentencing.
Iswaran’s defence team argued that his guilty plea followed the amendment of the charges and suggested that this change altered the “complexion” of the case.
However, Justice Vincent Hoong, in delivering his judgement on Thursday (3 Oct), rejected this argument, noting that Iswaran had consistently denied the charges and only pleaded guilty after the amendments were made. The court ruled that his decision to plead guilty did not demonstrate sufficient remorse, particularly given his earlier public statements professing innocence.
The judge also dismissed several of the defence’s mitigating arguments. Among them was the claim that Ong, the businessman who had offered Iswaran private jet travel and other benefits, would have incurred the costs regardless of Iswaran’s involvement.
Justice Hoong ruled that the central issue was Iswaran’s acceptance of these benefits while knowing that Ong had business interests connected to Iswaran’s official role as minister and chairman of the Formula 1 (F1) steering committee. This, the judge said, compromised the integrity of public office.
The court further rejected the argument that Iswaran’s public service and contributions to Singapore should weigh in his favour during sentencing.
Justice Hoong described these as “neutral” factors in this context, emphasising the importance of general deterrence in cases involving high-ranking officials. “Holders of high office set the tone for public servants and must be expected to avoid any perception of influence by pecuniary benefits,” the judge said.
Iswaran had pleaded guilty to obtaining gifts such as a private flight to Doha from Ong, taken while on urgent personal leave.
Although Iswaran’s lawyers argued that the absence of financial detriment to Ong should mitigate his culpability, the court rejected this. Justice Hoong stated that the focus should remain on the harm caused to public institutions and the need for general deterrence.
Furthermore, the defence’s claim that Iswaran had distributed the F1 tickets he received to friends and family, rather than selling them, was also rejected.
The judge ruled that the improper use of these tickets, which Iswaran had obtained by virtue of his official connection to Ong, was damaging to the integrity of public office.
Justice Hoong emphasised that general deterrence remained a central consideration in the sentencing of public servants who commit such offences.
“The lack of prevalence of such offences may be a sign of healthy governance processes, but it cannot detract from the courts’ responsibility to signal their disapproval of such conduct,” he said.
Iswaran had originally faced 35 charges, including two counts of corruption.
The charges were amended from two counts of corruption under the Prevention of Corruption Act (PCA) to offences under Section 165, which covers public servants who receive valuable gifts in connection with their official duties.
This section, unlike Section 8 of the PCA, does not include a presumption of corruption, which would have placed the burden on the accused to prove the gifts were not given as inducements.
The Attorney-General’s Chambers (AGC) cited litigation risks in proving the original corruption charges as a reason for amending them, but did not suggest that the case itself lacked merit.
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