An Indian-origin man, Prem Hirubalan, was barred from trading for seven years by the Monetary Authority of Singapore (MAS) on August 17. The MAS has issued two prohibition orders against Hirubalan for unauthorised share trading and misappropriating over USD 59,000 from a customer.
Prohibited from Trading
Hirubalan has been prohibited from performing any regulated activity, and taking part in the management, acting as a director or becoming a substantial shareholder of any capital market services firm under the Securities and Futures Act (SFA), according to a press release by MAS.
The two prohibition orders will be effective from August 17.
Convicted of Charges
As a trader with OCBC Securities Private Limited (OSPL) from May 2010 to May 2011, Hirubalan conducted unauthorised share trades in the trading accounts of three customers. Hirubalan was convicted of charges under 201 (b) of the SFA and section 406 of the Penal Code for these offences in June last year. He was sentenced to 10 months in jail in August 2016.
While he was employed with OCBC Securities, Hirubalan conducted unauthorised share trades in the trading accounts of three customers.
He was initially sentenced to eight weeks’ imprisonment, but the prosecution appealed, Straits Times reported, adding that last year, Judge of Appeal Tay Yong Kwang increased the sentence to 10 months, and said that Hirubalan “committed the offences with only his interests in mind”.
“While the amount in commissions was not huge, his actions were in complete disregard of the position of fidelity in relation to the securities company and to his clients. It was ultimately for his benefit. The second crime was committed to try to cover up the first,” Kwang added.
The publication quoted OCBC Bank’s head of group corporate communications Koh Ching Ching as saying: “Upon discovering the fraudulent transactions, OCBC Securities made a police report in April 2011, and subsequently terminated (Mr Hirubalan’s) employment.”
Lee Boon Ngiap, assistant managing director (Capital Markets), MAS, stressed upon the organisation’s expectation from all finance professionals to act honestly and with integrity. “To protect consumers from fraudulent and dishonest behaviour by representatives, MAS will not hesitate to bar any individuals who do not meet fit and proper criteria from the financial industry,” he said.