Mr Jimmy Ng Kian Bin and Mr Erik Ng Song Hann have been convicted and sentenced to 16 weeks’ and 4 weeks’ imprisonment respectively for fraud and dishonest conduct in Singapore in relation to the trading of futures contracts. Their convictions, pursued by the Monetary Authority of Singapore, are of interest to all exchange-facing private banks.

The pair worked for a trading firm, Joerik Financial Pte Ltd, but had they worked for a market-facing private bank the outcome would have been the same. They reportedly 'spoofed' index futures and passed on false information to the exchange. Spoofing is a type of scam in which the market protagonist sets up several dummy orders to make it look as though demand exists for this-or-that security. The Monetary Authority of Singapore pursued the men's prosecution. Court proceedings against a third man in the case, Mr Joseph Chai Ming Leong, are still in progress. Chai faces 2 charges under section 330(1)(a).

Jimmy Ng was charged under section 210(a) Securities and Futures Act for employing a scheme to defraud others in the trading of futures contracts and under section 330(1)(a) for furnishing a false statement to SGX-DTAll (Singapore Exchange Derivatives Trading Ltd) by way of a conspiracy punishable under section 109 of the Penal Code. He pled guilty and was convicted on three charges. Two remaining charges under section 210(a) of the SFA were taken into consideration for the purpose of sentencing. He was sentenced to a total of 16 weeks’ imprisonment for the charges.

Erik Ng was charged under section 210(a) for employing a scheme to defraud others in the trading of futures contracts and under section 330(1)(a) for furnishing a false statement to SGX-DT. He pled guilty and was convicted on two charges, with two remaining charges taken into consideration for the purpose of sentencing. He was sentenced to 4 weeks’ imprisonment.