Singapore convicts ‘masterminds’ behind US$6 billion penny-stock crash

Quah Su-Ling and Malaysian John Soh Chee Wen artificially inflated the value of three companies’ shares preceding the penny-stock crash in 2013, the court found

The US$5.78 billion scandal battered investor confidence and led to a series of reforms to the city state’s stock trading rules

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Published: 2:32pm, 6 May 2022

Singapore’s High Court has convicted two people over what authorities consider to be the largest market manipulation case in the city state, the police and Monetary Authority of Singapore said in a joint statement.

For almost a decade, Singapore authorities have been investigating suspected trading irregularities tied to a so-called penny-stock crash in late 2013 that wiped out around S$8 billion (US$5.78 billion) from the value of three companies within the space of a few days.

Quah Su-Ling and Malaysian John Soh Chee Wen were the masterminds behind an elaborate scheme to artificially inflate the value of shares of Blumont Group Ltd (Blumont), Asiasons Capital Ltd (Asiasons) and LionGold Corp Ltd (LionGold), the statement said.

Singapore’s old Supreme Court building is seen in front of the new one. The Supreme Court consists of the city state’s Court of Appeal and its High Court. Photo: Roy Issa

The pair were found guilty on more than 100 offences each, including market manipulation and cheating, it said.

The scandal, which saw those stocks surge multiple times in the months before they slumped, battered investor confidence and led to a series of reforms to the city state’s stock trading rules.

During investigations, Singapore authorities raided more than 50 locations and interviewed over 70 individuals, examining evidence comprising more than 2 million emails, 500,000 trade orders, and thousands of telephone records and financial statements, the joint statement said.

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