Singapore’s central bank fined CIMB-GK Securities trader Tan Wee Kiat Melvin $50,000 for false trading and suspended his license for three months as the city cracks down on market abuse.

Tan, who admitted contravening the securities act, made a profit of $3,800 after falsely creating the appearance of a large supply of Singapore Petroleum Co. shares on Aug 11, 2009, the Monetary Authority of Singapore said in an e-mailed statement today.

“The entry and deletion of orders with intent to artificially raise or depress the closing price of securities distorts the market and undermines its efficiency,” said Leo Mun Wai, assistant managing director of the capital markets group at the regulator. “MAS will not hesitate to take action against anyone who engages in such conduct.”

Tan had placed four sell orders for a total of 275,000 Singapore Petroleum shares in the last five minutes of trading on Aug 11, 2009, with no intention of fulfilling the orders, the regulator said. Seconds before the trading day closed, he deleted three of the orders, seeking to achieve a higher selling price for the remaining trade, according to the statement.

The central bank’s action comes as it pledged more action after winning its first civil lawsuit last week for stock rigging against fund manager Tan Chong Koay and Pheim Asset Management Sdn. The regulator also won its first civil lawsuit for insider trading against former WBL Corp. chief financial officer Kevin Lew this year.