MAS bans two bankers for fraud

Pedro Gonçalves
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MAS bans two bankers for fraud

The Monetary Authority of Singapore has issued prohibition orders against two former bank employees for fraud and dishonest conduct. 

The orders, issued to Lu Chor Sheng and Tan Swee Thiam Timothy, took effect from Thursday. The cases were unrelated and both have been convicted in the State Courts, MAS added.

Lu and Tan, who received 17 and nine years respectively, are prohibited from performing any regulated activity under the Securities and Futures Act (SFA) and from providing any financial advisory service under the Financial Advises Act (FAA).

To realise profits, Lu placed additional unauthorised trades in his customers’ accounts as counterparties to the trades placed in his friends’ accounts"

Between January 2011 and June 2013, Lu used a friend's accounts to place unauthorised foreign exchange trades with off-market rates which caused OCBC to suffer a loss of $3.09m.

He made a profit of about $1.09m from his misconduct and used the monies to buy foreign currencies as well as to repay debts. Lu was convicted of abetment of cheating and sentenced to 100 months' imprisonment.

"To realise profits, Lu placed additional unauthorised trades in his customers' accounts as counterparties to the trades placed in his friends' accounts," MAS said.

He told his customers that these were erroneous trades and would be reversed at no loss to them. Lu also instigated his friend to impersonate his customers to place unauthorised forward foreign exchange orders with OCBC to close off unauthorised foreign exchange trades that he had placed in the customers' accounts.

Tan was caught making unauthorised internet bank transfers amounting to around $263,500 from his friend's UOB account to his personal bank account from March 2015 to January 2016.

The woman, a customer of UOB, had entrusted her bank accounts, Internet banking security token and ATM card to him.

"Between March 2015 and January 2016, Tan made unauthorised Internet bank transfers amounting to around S$263,500 from this customer's UOB account to his personal bank account, in order to pay for his living expenses," MAS added.

He used the monies to pay for his living expenses. As a result of this misconduct, Tan was sentenced to 30 months' imprisonment. 

They are also prohibited from taking part in the management, acting as a director or becoming a substantial shareholder of any capital market services firm under the SFA.

 

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