The Singapore authorities were rather slow out of the blocks, but the pace of proceedings has quickly caught on. I have confidence they will get to the bottom of this saga, although it might take time.
Article in the Straits Times (Singapore) by Grace Leong and another article on "ValueBuddies".
"The probe into last October's penny stock rout on the Singapore Exchange (SGX) has now widened to include the chief executive of Innopac Holdings as well as units of Magnus Energy.
The Commercial Affairs Department (CAD) has asked Mr Wong Chin-Yong, CEO and executive director of Innopac Holdings, to assist with investigations in relation to offences under the Securities and Futures Act.
Meanwhile, Magnus Energy Group also announced that two subsidiaries and a former subsidiary had received notices from CAD to provide all information and data belonging to the company's executive director Koh Teng Kiat and chief financial officer Luke Ho Khee Yong."
"The CAD also asked ISR Capital, majority-owned by private equity firm Asiasons, to assist with the probe. It made the same request for data belonging to ISR chief executive Quah Su Yin.
Similar CAD requests were made to Innopac chief executive Wong Chin-Yong; ITE Electric chief executive Ho Cheng Leong; its chief operating officer, Mr Ang Cheng Gian; and Mr Goh Hin Calm, a non-executive and independent director.
Innopac and ITE Electric said the four men will remain in their posts as the investigation proceeds.
Magnus Energy announced on Wednesday that two subsidiaries and a former subsidiary had received CAD notices to supply information and data belonging to executive director Koh Teng Kiat and chief financial officer Luke Ho Khee Yong."
"What goes round comes round... no matter how long it takes..." and with that we can only agree.
Friday, 4 April 2014
Thursday, 3 April 2014
Michael Lewis: "Flash Boys" (2)
An alternative, rather critical view on Michael Lewis' latest book can be found here:
"Michael Lewis’ Repeat Omission: No Crimes Were Committed"
In Flash Boys, Michael Lewis has again launched a book that hews to his established formula: colorful outsiders take on a big bad entrenched establishment and win. Even though Lewis seems assured of having yet another best-seller, this book is getting more criticism than his works usually do. Put it this way: when commentators as diverse as Felix Salmon, Matt Levine, and Pam Martens feel compelled to object, it looks like Lewis has overfitted this tale to his blockbuster formula.
One of the mentioned links is written by Pam Martens:
"60 Minutes Sanitizes Its Report on High Frequency Trading"
Another interesting link is written by "Streetwise Professor":
"Michael Lewis’s HFT Book: More of a Dark Market Than a Lit One"
"Michael Lewis’ Repeat Omission: No Crimes Were Committed"
In Flash Boys, Michael Lewis has again launched a book that hews to his established formula: colorful outsiders take on a big bad entrenched establishment and win. Even though Lewis seems assured of having yet another best-seller, this book is getting more criticism than his works usually do. Put it this way: when commentators as diverse as Felix Salmon, Matt Levine, and Pam Martens feel compelled to object, it looks like Lewis has overfitted this tale to his blockbuster formula.
One of the mentioned links is written by Pam Martens:
"60 Minutes Sanitizes Its Report on High Frequency Trading"
Another interesting link is written by "Streetwise Professor":
"Michael Lewis’s HFT Book: More of a Dark Market Than a Lit One"
Wednesday, 2 April 2014
Penny Stock Saga: were the share prices manipulated? (3)
Two recent developments in the "Penny Stock Saga":
Article from the Straits Times (Singapore)
Court orders CEO to pay up $1.8m debt owed to bank
THE chief executive of an investment holding company who is locked in multi-million dollar lawsuits, has been ordered by the High Court to pay up a $1.83 million debt owed to a bank.
Ms Quah Su-ling, executive director of Ipco International for more than a decade, failed in her appeal to rescind the summary judgment against her sought by the Bank of East Asia for monies owed from a share margin facility. Ms Quah had also appealed to put the proceedings on hold.
.....
Ms Quah's woes began last year with the plunge in the share prices of three listed companies: Asiasons Capital, LionGold Corp and Blumont Group.
She had invested up to $120 million in their shares.
She claimed Goldman Sachs gave her 1 1/2 hours last October to repay $61 million, which is the margin call on her trades in the companies.
Announcement by Blumont:
"The board of directors (the “Board”) of Blumont Group Ltd. (博诺有限公司) (the “Company”) wishes to announce that G1 Investments Pte Ltd (“G1 Investments”), a wholly-owned subsidiary of the Company, has received a notice dated 2 April 2014 from the Commercial Affairs Department of the Singapore Police Force (“CAD”) requiring G1 Investments’ assistance with the CAD’s investigations into an offence under the Securities and Futures Act (Chapter 289) (the “SFA”). The CAD has requested for access to, amongst others, all corporate electronic data from 1 January 2011 to-date, information technology equipment and data storage devices (if any) belonging to Mr. Neo Kim Hock, the Executive Chairman of the Board, and Mr. James Hong Gee Ho, Executive Director of the Company.
Further, the Company has been informed that Mr. Hong has been requested to assist the CAD in its
investigations into a possible infringement under the SFA..."
Looks like the net is tightening.
Article from the Straits Times (Singapore)
Court orders CEO to pay up $1.8m debt owed to bank
THE chief executive of an investment holding company who is locked in multi-million dollar lawsuits, has been ordered by the High Court to pay up a $1.83 million debt owed to a bank.
Ms Quah Su-ling, executive director of Ipco International for more than a decade, failed in her appeal to rescind the summary judgment against her sought by the Bank of East Asia for monies owed from a share margin facility. Ms Quah had also appealed to put the proceedings on hold.
.....
Ms Quah's woes began last year with the plunge in the share prices of three listed companies: Asiasons Capital, LionGold Corp and Blumont Group.
She had invested up to $120 million in their shares.
She claimed Goldman Sachs gave her 1 1/2 hours last October to repay $61 million, which is the margin call on her trades in the companies.
Announcement by Blumont:
"The board of directors (the “Board”) of Blumont Group Ltd. (博诺有限公司) (the “Company”) wishes to announce that G1 Investments Pte Ltd (“G1 Investments”), a wholly-owned subsidiary of the Company, has received a notice dated 2 April 2014 from the Commercial Affairs Department of the Singapore Police Force (“CAD”) requiring G1 Investments’ assistance with the CAD’s investigations into an offence under the Securities and Futures Act (Chapter 289) (the “SFA”). The CAD has requested for access to, amongst others, all corporate electronic data from 1 January 2011 to-date, information technology equipment and data storage devices (if any) belonging to Mr. Neo Kim Hock, the Executive Chairman of the Board, and Mr. James Hong Gee Ho, Executive Director of the Company.
Further, the Company has been informed that Mr. Hong has been requested to assist the CAD in its
investigations into a possible infringement under the SFA..."
Looks like the net is tightening.
Stolen info SBM Offshore about alleged $ 250 million fraud (2)
I wrote before about this case: an angry former employee who allegedly blackmailed SBM Offshore and published a list of potential problem cases in the on-going bribery investigations.
Today, finally, SBM published their findings:
Other Countries
At the outset of the investigation, the Company froze all payments to agents and conducted a review and due diligence on sales agents in all other countries. As a result of that review the Company decided to discontinue certain agents. Also, the Company decided to no longer use agents in countries where it has a presence. The investigation team also specifically looked at other countries covered by the agreements with the agent used in Equatorial Guinea and Angola but in its evidence-based approach did not perform a further detailed investigation into these countries.
In the list of the angry ex-employee three Malaysian companies were mentioned: MISC, Barnado and Delcom. SBM Offshore apparently has not found anything wrong with these business relations. SBM Offshore has now a presence in Malaysia (Kuala Lumpur), and will thus not use agents anymore.
Today, finally, SBM published their findings:
- The Company paid approximately US$200 million in commissions to agents during that period of which the majority relate to three countries: US$18.8 million to Equatorial Guinea, US$22.7 million to Angola and US$139.1 million to Brazil;
- In respect of Angola and Equatorial Guinea there is some evidence that payments may have been made directly or indirectly to government officials;
- In respect of Brazil there were certain red flags but the investigation did not find any credible evidence that the Company or the Company’s agent made improper payments to government officials (including state company employees). Rather, the agent provided substantial and legitimate services in a market which is by far the largest for the Company;
Other Countries
At the outset of the investigation, the Company froze all payments to agents and conducted a review and due diligence on sales agents in all other countries. As a result of that review the Company decided to discontinue certain agents. Also, the Company decided to no longer use agents in countries where it has a presence. The investigation team also specifically looked at other countries covered by the agreements with the agent used in Equatorial Guinea and Angola but in its evidence-based approach did not perform a further detailed investigation into these countries.
In the list of the angry ex-employee three Malaysian companies were mentioned: MISC, Barnado and Delcom. SBM Offshore apparently has not found anything wrong with these business relations. SBM Offshore has now a presence in Malaysia (Kuala Lumpur), and will thus not use agents anymore.
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