Thursday, 28 November 2013

It is raining court cases in Singapore penny stock saga

According to this article Interactive Brokers has joined in the ever growing list of court cases regarding the penny stock saga involving companies like Asiasons Capital, Blumont Group, LionGold Corp and Innopac Holdings, companies with Malaysian links:

"Global broking giant Interactive Brokers has launched the largest legal action so far in the wake of October's penny stock collapse, taking aim at at least 10 clients as it seeks to recover about US$68 million of losses.

BT understands that Interactive Brokers launched arbitration proceedings earlier this month against 10 individuals and entities through the American Arbitration Association.

Pending the start of arbitration proceedings, the global broker has also obtained court orders in Singapore and Malaysia to freeze the assets of eight of those clients, including certain directors and shareholders of Asiasons Capital, Blumont Group, LionGold Corp and Innopac Holdings - four of the stocks at the centre of last month's selldowns.

According to court documents inspected by The Business Times and confirmed by sources, Interactive Brokers on Nov 8 sought court orders to freeze the assets of Malaysian nationals Neo Kim Hock, Peter Chen Hing Woon, Tan Boon Kiat, Quah Su-Ling, Lee Chai Huat and Kuan Ah Ming; and two British Virgin Islands-registered companies, Sun Spirit Group Ltd and Neptune Capital Group Ltd."

Earlier on it was announced that Goldman Sachs is being sued for its part in this drama, recent articles can be found here and here.

I have blogged before about Goldman Sachs and its "ethics" (or rather lack of it), here is another (unrelated) case, as reported by The Independent:

Adrian Bailey, chair of the Business Select Committee, which is due to question Mr Cable on Wednesday, said: “It’s totally unacceptable. I don’t see how you can act as adviser to the Government and then profit from the advice you have given them. It is a conflict of interest.”


  1. Because of this saga, the Malaysia SPAC companies like Sona, Cliq are not moving at all.

  2. Interesting, would there be a direct link? Or are people scared of "investing" in speculative counters? I guess we have to wait.