Trader Pan Qi was today (25 April) convicted and sentenced to five weeks imprisonment and fined $120,000 for offences involving fraud and deceit under the Securities and Futures Act (SFA), a joint investigation conducted by the Monetary Authority of Singapore (MAS) and the Commercial Affairs Department of the Singapore Police Force has found.
In a statement, the MAS said that between 4 January 2019 and 24 July 2020, Pan worked as a trader at Nech Capital Private Limited (NCPL), a fund management company. During this time, he executed trades in several securities counters using accounts belonging to his relatives and that of NCPL.
Pan would first sell these securities to his relatives, before buying them back at higher prices using NCPL's accounts. In some instances, he would use NCPL's accounts to buy securities from his relatives before selling them back to them at lower prices. These trades profited Mr Pan's relatives at the expense of NCPL and Pan shared in these profits.
Pan pleaded guilty to one charge of deceiving NCPL by conducting fraudulent trades under section 201(b) of the SFA. Two remaining charges under section 201(b) of the SFA for engaging in a similar course of business to defraud NCPL and for the unauthorised use of his relatives' trading accounts were taken into consideration for the purpose of sentencing.
Pan's conviction was the result of a joint investigation conducted by the Monetary Authority of Singapore (MAS) and the Commercial Affairs Department of the Singapore Police Force.
The investigations against Pan arose from referrals by the Singapore Exchange Securities Trading Limited.
