Brokerage firms could soon be forced to keep a closer eye on the activities of their clients and try harder to spot instances of market misconduct

SINGAPORE (Aug 12): Jack Ng Kit Kiat, 70, made waves in court earlier this year describing how he had procured the “very pretty” Quah Su-Ling as a client through an introduction, and how Quah and later John Soh had directed trades through him for accounts that were in neither of their names. But it was not long before the former OCBC Securities remisier undermined his own credibility by admitting under cross-examination that he had committed some market infractions of his own.

In particular, Ng had failed to obtain written third-party authorisation from holders of the accounts used by Quah and Soh. Ng also admitted to “front running” trading instructions from Quah and Soh, using a trading account in his wife’s name. On top of that, he had initially lied to the authorities about his involvement in the activities of the duo, who have been charged with numerous counts of stock manipulation and cheating in connection with the huge run-up and sudden collapse of shares in Blumont Group, LionGold Corp and Asiasons Capital (now Attilan Group) back in 2013, dubbed the penny stock crash.

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