Malicious Inducement to Trade - a Penny Stock Syndicate in Singapore & various malicious actors in HKG

 SGX RegCo and MAS are possibly investigating a Telegram Penny Stock Syndicate which has about 5000 members currently for market manipulation. Why I think so is due to the fact that I am unaware of any other Telegram groups which are of the scale which is capable of manipulating the market and also based on my observations of their calls as well as various  possibly incriminatory past statements  (screenshotted).  Of course, this is my personal opinion. While this has been old news, sgHuat will take this opportunity to warn members further of such a syndicate as numerous of our course attendees have lost huge sums of money following their malicious calls at sky-high prices. We will want to prevent future incidents.

SgHuat would like to warn all members to be careful when trading securities, particularly low-float and low-cap stocks - especially those with low liquidity. An example of a recent pump & dump that was possibly perpetuated and promoted by the syndicate involves VividThree. This needs further investigation.

Please see the following links on the SGX website. Indeed, Telegram chat group was very specifically mentioned!

https://www.sgx.com/media-centre/20201210-sgx-regco-warns-public-pump-and-dump-activities-exploiting-telegram-chats-and

https://www.sgx.com/media-centre/20210202-mas-and-sgx-beware-risks-related-trading-incited-online-discussions 

The main perpetrator, "Mystic Dax" as well as his cronies, the likes of "Furion", "Wayne", "G.E.M",  etc (who might even be the same person!) are possibly in breach of Section 199 and/or Section 200 of the Securities and Futures Act ("SFA") if they are involved in pump and dump activities. This needs further investigation. We hope that MAS and SGX investigates and sheds some clarity as my members have lost money in these dubious activities.

Section 199 of the SFA prohibits a person from knowingly or recklessly making or disseminating false or misleading information and statements that are likely to induce subscription of or the sale or purchase of securities, securities-based derivatives contracts or CIS units or which are likely to affect the market price of these capital markets products.

Section 200 of the SFA involves a higher level of mens era, viz fraudulent intention, in addition to recklessness or knowledge. Section 200 of the SFA deals with the situation where a person fraudulently induces other persons to deal in a capital markets product. The accused must have made or published a statement, promise or forecast that was misleading either recklessly or with knowledge that it was misleading.

It is to be noted that both Section 199 and Section 200 of the SFA do not require that there had actually been a price movement in favour of the respondents. You can read more here.

SgHuat abides by all laws and regulations in force at all material time. In fact, we primarily deal with blue chips with high market capitalisation, which is very difficult to pump and dump. We would like to caution all members of this Singapore Penny Syndicate as many of our members have lost money following their possibly malicious calls. We would also take this opportunity to caution all members that there are Hong Kong Stock Syndicates lurking in our Telegram chat group as well as other chat groups, which often pester our members to buy HK securities. They are also involved in pump and dump activities so please exercise utmost caution - it is best to just ignore the Penny Stock group and the HKG stock promoters.

We will advise all members to trade and invest safely and rationally; seek independent financial advice if required. If you have not already joined our Telegram group, please join us by clicking here.

As Singapore's largest Telegram community of traders and investors, we seek to lead by example and pursue a higher level of critical thinking & competence among retail traders so that we will all huat together.

Wishing everyone a prosperous Lunar New Year!