The Monetary Authority of Singapore has sued a former employee of WBL Corporation for alleged insider trading. The Business Times reports that the insider trading case marks the first time MAS has ever acted as the plaintiff in a lawsuit. In previous cases, MAS has imposed fines without court action after the individuals admitted to civil liability for violating the Securities Futures Act.
The subject of the lawsuit, Kevin Lew Chee Fai, is the former general manager of enterprise risk management at WBL. He has denied any wrongdoing. MAS alleges that Lew sold a total of 90,000 WBL shares at $4.98 per share on July 4, 2007 while aware of poor internal forecasts of WBL’s financial results for the third quarter of its fiscal year 2007. MAS alleges that through his sale, Lew avoided a loss of approximately $27,000.