SINGAPORE (May 3): The Monetary Authority of Singapore has taken civil penalty action against Pu Weidong (Pu) and Triumpus Assets Management Pte Ltd (Triumpus) for insider trading in the shares of Sinomem Technology Ltd (Sinomem).

Pu was CFO in Sinomem when the contraventions took place. Pu is also the sole director and shareholder of Triumpus.

Between March 2 and March 27 2009, Pu and Triumpus purchased 4,605,000 Sinomem shares when Pu possessed confidential price-sensitive information concerning a proposed share buyback offer by Sinomem, which was subsequently announced on 27 March 2009. Pu and Triumpus made a profit of $49,542 on these insider trades.

Between Aug 25 and Aug 31 2009, Pu and Triumpus sold 14,174,000 Sinomem shares when Pu possessed knowledge of confidential, price-sensitive information on a proposed placement of shares by Sinomem. Information on the proposed share placement was announced on Sept 9, 2009. Pu and Triumpus did not make any profit or avoid any loss on these trades.

On Feb 26 last year, MAS commenced a civil penalty action in the State Court of Singapore against Pu and Triumpus for insider trading in Sinomem’s shares under the Securities and Futures Act (SFA).

Pu and Triumpus have admitted to contravening sections 218(2)(a) and 219(2)(a) of the SFA. They will pay to MAS a civil penalty of $316,000, as well as $61,610.75 for the legal costs and disbursements incurred by MAS for the civil penalty action.

Pu has also given a voluntary undertaking not to be a company director or be involved in the management of a company for a period of one year with effect from July 3, 2016.