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May 13, 2010
2 directors fined for wrongdoing
<!-- by line --> By Dickson Li
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Praful Desai, was fined $172,000 by the Subordinate Courts. He had pleaded guilty to two charges of insider trading, two charges of failing to disclose his purchase of the firm's shares, and one charge of being deceptive and using another person's securities account to carry out trades for his benefit. -- ST PHOTO: WONG KWAI CHOW
<!-- story content : start --> TWO directors of two different companies found guilty of wrongdoing were slapped with fines on Thursday. Former chief operating officer of mainboard-listed JEL Corp Eric Leow had earlier pleaded guilty in the Subordinate Courts to one count of failing to notify the Singapore Exchange (SGX) of his interests and directorships in a British Virgin Islands-incorporated firm Biomed Holdings, between September 2001 and November 2002. Leow also admitted to two counts of intentional failure to disclose interested party transactions. He was fined $150,000. JEL conducts businesses with several trading partners, including Hong Kong-incorporated Yong Tat Enterprise, Singapore-incorporated Vietco, and South Africa-incorproated City Square Trading 197, all of which are directly or indirectly owned by Biomed Holdings.
In a separate case, a non-executive director of trading and engineering group Lindeteves-Jacoberg, Praful Desai, was fined $172,000 by the Subordinate Courts. He had pleaded guilty to two charges of insider trading, two charges of failing to disclose his purchase of the firm's shares, and one charge of being deceptive and using another person's securities account to carry out trades for his benefit. Desai tried to avoid detection of the trades by instructing his trading representative James Chui to make the purchase using a third party's account - Mr Chui's wife - to purchase more than 350,000 shares between May and August of 2005.
Read the full story in Friday's edition of The Straits Times
