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Suspect in penny-stock crash tampered with witnesses: Prosecutors

SINGAPORE — Investigators have found audio recordings between John Soh Chee Wen, the alleged mastermind of the penny-stock crash in 2013, and a witness named Gabriel Gan, suggesting that Soh tried to tamper with several key witnesses, the court heard yesterday.

Mr John Soh Chee Wen, a Malaysian businessman, poses for a photograph in Singapore, on Jan 31, 2016. Photo: Bloomberg

Mr John Soh Chee Wen, a Malaysian businessman, poses for a photograph in Singapore, on Jan 31, 2016. Photo: Bloomberg

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SINGAPORE — Investigators have found audio recordings between John Soh Chee Wen, the alleged mastermind of the penny-stock crash in 2013, and a witness named Gabriel Gan, suggesting that Soh tried to tamper with several key witnesses, the court heard yesterday.

This was raised during a hearing for Soh, 56, to be released on bail. His lawyer, Senior Counsel Tan Chee Meng, said that Soh was facing “highly prejudicial evidence” and sought an adjournment. Prosecutors cited the newfound recordings as one of the reasons to deny him bail.

Soh, a Malaysian, is facing 181 charges in all, including 162 counts of giving instructions on various trading accounts — without the account-holders’ consent — to deceive financial institutions.

Ten of these charges were for extensive market and price manipulation in publicly listed companies such as Blumont Group, Asiasons Capital and LionGold shares. The shares of these three firms surged more than 800 per cent over several months, before crashing by more than 90 per cent, in an unexplained free fall on Oct 4, 2013. The episode created immense market volatility and wiped out billions in market value.

Soh also faces other charges for cheating and for being involved in the management of certain corporations while being an undischarged bankrupt.

Deputy Public Prosecutor (DPP) Teo Guan Siew said yesterday that a fourth affidavit was tendered on Friday after such evidence of tampering came to light in the last two weeks.

The Monetary Authority of Singapore and the Commercial Affairs Department (CAD) recently began investigations into the sharp plunge in share price of listed company, ISR Capital. The investment firm’s share price plunged by more than 50 per cent on Nov 24, the same day Soh was taken into custody, DPP Teo said.

During investigations, audio recordings of conversations between Soh and Gan, a witness, were found in laptops seized from one of the witnesses, he added.

Soh, Quah Su-Ling and Goh Hin Calm were charged in court last month with various market manipulation, false trading, cheating and other offences. The judge set Goh’s bail at S$750,000 — lower than the S$1 million sought by prosecutors — but agreed with the prosecution’s suggestion of S$4 million bail for Quah.

In adjourning Soh’s case to Dec 30, the judge said that the prosecution would have to share the audio recordings with the defence. The defence may also ask for certain extracts of witnesses’ statements for the prosecution to consider, and for Soh to file certain affidavits. Siau Ming En

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