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SINGAPORE – The Monetary Authority of Singapore (MAS) has banned two former bank employees for fraud and dishonest conduct following their convictions in state courts in separate cases.
Lu Chor Sheng, a former treasury advisor at OCBC Bank, received a 17-year ban order (PO), while Timothy Tan Swee Thiam, former United Overseas Bank (UOB) relations manager, was suspended for nine years, he said. regulator in a statement on Friday (October 30).
POs prohibit individuals from engaging in any activity regulated under the Securities and Futures Act (SFA), and from providing any financial advisory services under the Financial Advisors Act (FAA) during the period indicated.
The orders against the two men went into effect on October 29, MAS said.
They are also prohibited from participating in the management, acting as a director, or becoming a substantial shareholder of any capital market services company under the SFA and any financial advisory firm under the FAA.
Lu was convicted of aiding and abetting under the Penal Code (PC), unauthorized modification of the content of the OCBC system under the Computer Misuse Act (CMA) and crimes under the Corruption, Drug Trafficking and Other Serious Crimes Act (Confiscation of Benefits). He was previously sentenced to eight years and four months in prison.
Between January 2011 and June 2013, you used a friend’s OCBC accounts to place unauthorized forward foreign exchange (FX) trades at out-of-market rates in the OCBC system so that you could buy cheaper sell higher than prevailing market rates.
In order to make a profit, Lu placed additional unauthorized trades on his clients’ accounts as counterparties to trades made on his friend’s accounts and told his clients that these were wrong trades that would be reversed without loss to them.
Lu also instigated his friend to impersonate his clients to place unauthorized forward exchange orders with OCBC, in order to shut down unauthorized forex trades that he had placed on those clients’ accounts.
When OCBC discovered the unauthorized transactions, the bank closed the outstanding contracts on Lu’s customer accounts and suffered a total loss of $ 3.09 million.
Meanwhile, Lu made a profit of around $ 1.09 million from his misconduct and used the money to buy foreign currency and to pay off debts.
Tan, the former UOB employee, was convicted of criminal breach of trust under the PC and offenses under the CMA. He was sentenced to 30 months in prison.
Tan’s friend, a UOB customer, had entrusted him with his UOB bank accounts, the Internet banking security token, and the UOB ATM card.
Between March 2015 and January 2016, Tan made unauthorized Internet bank transfers worth approximately $ 263,500 from this customer’s UOB account to his personal bank account, to pay his living expenses.
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