Business

Trader who was jailed barred for 7 years by MAS

Two prohibition orders have been lodged against a former OCBC Securities trading representative after his conviction for unauthorised share trading and misappropriation of customers' monies.

The prohibition orders took effect yesterday, the Monetary Authority of Singapore (MAS) said.

Mr Prem Hirubalan was with OCBC Securities from May 2010 to May 2011.

He was convicted on June 24 last year on two charges under Section 201(b) of the Securities and Futures Act (SFA) and one charge under Section 406 of the Penal Code for the crimes.

He was jailed for 10 months on Aug 8 last year.

The MAS barred Mr Hirubalan from performing any regulated activity or taking part in the management, acting as a director or becoming a substantial shareholder of any capital market services firm under the SFA for seven years.

He is also barred for seven years from providing financial advisory services, taking part in the management, acting as a director or becoming a substantial shareholder of any financial advisory firm under the Financial Advisers Act.

During his employment with OCBC Securities, Mr Hirubalan conducted unauthorised share trades in the trading accounts of three customers and misappropriated around $81,000 from one of these customers.

He was initially sentenced to eight weeks' jail, but the prosecution appealed.

Judge of Appeal Tay Yong Kwang, in a decision issued on Aug 8 last year noted that Mr Hirubalan "committed the offences with only his interests in mind".

He would have made about $4,000 in commission based on the total amount of illegal trades.

"... His actions were in complete disregard of the position of fidelity in relation to the securities company and to his clients," the judge said.

Monetary Authority of SingaporecourtTRADING