The Monetary Authority of Singapore (MAS) has imposed a S$137,000 civil penalty on Mr Ang Yew Jin Eugene for insider trading.

This means he used secret company information to sell shares BEFORE the public knew bad news was coming, which is extremely, extremely illegal.

This case involved shares of Alpha Energy Holdings Limited (AEHL), which is now known as Alpha DX Group.

Why was it Insider Trading?

According to press release, Mr Ang was a non-executive director of AEHL.

He knew privately that the company had failed to repay a US$64million loan. He also knew the creditor had the right to demand full immediate repayment. Most importantly, this information was not available to the public yet.

Five days before the company announced the news, he sold 2,413,300 shares using his parents' trading accounts. By doing so, his parents avoided losing about S$54,900.

The Verdict for Mr Ang

Mr Ang has admitted to breaking insider-trading rules under the Securities and Futures Act and has paid the civil penalty of S$137,000 to MAS.

Mr Ang has also agreed not to serve as a company director or management member for two years unless MAS gives the special approval.

Mr Ang did not receive a criminal charge, as civil penalties are financial punishments and not jail time.

Why This Matters for You, the Youths.

Even if you just started investing or planning to run a company one day, this case highlights a major rule.

If you know secret company information that can affect the share price, you definitely CANNOT trade the shares related to the company.

Insider trading hurts normal retail investors as it is unfair. The financial market will also lose its trust. For anyone who has been investigated and found guilty of insider trading, it likely leads to heavy fines or even jail in serious cases imposed on them.

So please, young entrepreneurs, interns and investors in listed companies, if you manage to obtain any information regarding the company, you must never share or act on it, for your own good.