Three senior executives from online trading platform Samtrade FX have been charged in court over alleged fraudulent trading practices and money laundering offences.
The men, Goh Nai De, Goh Li Xing and Yue Jingyuan Alfred, also known as Alfred Yue, were charged on Wednesday, December 17, for engaging in practices said to be likely to operate as a fraud, as well as for money laundering.
At the time of the alleged offences, they held the positions of chief executive officer, chief technology officer, and head of dealing and strategy respectively.
Samtrade FX offered trading in contracts for differences across various asset classes, including foreign exchange, indices, commodities and cryptocurrencies. Among its products was a "copy trading" feature, which allowed clients to automatically replicate trades executed in selected trading accounts on the platform.
Investigations revealed that most client copy trades ultimately mirrored transactions from 11 accounts known as "Ultimate Trader" accounts.
These accounts were allegedly controlled by Alfred Yue. Prosecutors said the trio conspired between January 1 and December 27, 2021, during which Yue fraudulently manipulated trades executed through these accounts.
According to court documents, Yue allegedly adjusted bid-ask spreads in the Ultimate Trader accounts so that copied trades appeared profitable to clients. This was done without clients' knowledge, creating a false impression of successful trading outcomes while concealing that the trades had been artificially tilted.
During the same period, the three men are accused of receiving substantial sums derived from the alleged fraudulent scheme. Goh Nai De is said to have received about S$8.7 million, Goh Li Xing about S$4.8 million, and Alfred Yue about S$650,000. The funds were allegedly linked to monies deposited by Samtrade FX clients who had copied the manipulated trades.
If convicted, each accused faces a jail term of up to seven years, a fine of up to S$250,000, or both, for each charge under the Securities and Futures Act.
They also face separate charges under the Corruption, Drug Trafficking and Other Serious Crimes (Confiscation of Benefits) Act, which carry penalties of up to 10 years' imprisonment, a fine of up to S$500,000, or both, for each count.
