The Monetary Authority of Singapore (MAS) has imposed a civil penalty of S$137,000 on Mr Ang Yew Jin Eugene for insider trading in the shares of SGX-listed Alpha Energy Holdings Limited (AEHL).

On 18 November 2019, AEHL announced that a creditor had declared the entire principal sum of US$64 million owed by the Group as immediately due and payable, following the Group’s default in the partial repayment of a loan. The principal sum demanded by the creditor represented approximately ten times the value of current assets held by the Group as of 30 June 2019. After the announcement, trading of AEHL’s shares was immediately suspended.

Mr Ang was a non-executive director of AEHL at the material time. By virtue of his position, he knew of the Group’s failure to make repayment. Further, Mr Ang knew that in accordance with the loan agreement, the creditor had a right to demand immediate payment of the entire principal sum when the Group defaulted on its repayment.

On 13 November 2019, while in possession of such non-public, material information, Mr Ang sold 2,413,300 AEHL shares held in his parents’ trading accounts. By selling the shares ahead of the announcement, Mr Ang’s parents avoided losses of approximately S$54,900.

Mr Ang admitted to contravening the insider trading provision under section 218(2)(a) of the Securities and Futures Act and has paid MAS the civil penalty without court action. Mr Ang has also given a voluntary undertaking not to be a director or be involved in the management of a company for a period of two years .

The civil penalty action against Mr Ang is the result of a joint investigation conducted by the Commercial Affairs Department of the SPF and the MAS, following a referral by the Singapore Exchange Regulation Private Limited.