Former Swiber CEO Yeo Chee Neng fined $310k over insider trading and false statements

The former Chief Executive Officer of Swiber Holdings, Yeo Chee Neng, has been convicted and fined $310,000 on Thursday (July 4) for four counts of offences under the Securities and Futures Act (SFA).

The 51-year-old, who held the roles of Group President and executive director, faced charges related to insider trading, false statements, and disclosure breaches.

Why this matters

This case highlights the critical importance of corporate transparency and accountability, particularly for young professionals entering the business world.

What happened

Swiber Holdings, an offshore oil and gas company, announced in 2014 that it had secured a US$710 million (S$958 million) project in West Africa.

However, police investigations revealed the project was only in preliminary stages, and the announcement significantly overstated Swiber's business prospects.

Insider trading explained

Yeo became Swiber's CEO and Group President in June 2016. In these roles, he knew about the company's financial troubles due to a slowdown in the oil and gas sector.

Swiber needed to repay $305 million in debentures — a type of long-term debt instrument used by companies to borrow money — between June and October 2016.

Yeo knew that if Swiber couldn't raise funds, it would default on its payments.

He shared this inside information with his wife and instructed her to sell their Swiber debentures before the public knew about the financial issues.

On June 29, 2016, she sold debentures worth $500,000, avoiding significant losses before Swiber's financial troubles became public.

On July 27, 2016, Swiber filed for liquidation, but this was soon changed to interim judicial management.

Swiber later defaulted on its debentures. Yeo avoided losses of $629,762 through his actions, a sum he repaid to the state before his sentencing, the police said.

Yeo was fined for insider trading, having sold Swiber debentures based on non-public information about the company's financial difficulties in 2016. 

7 former company directors involved

Additionally, seven former Swiber directors were convicted and fined for their roles in the false announcement, with fines ranging from $10,000 to $100,000.

All of them have been disqualified from holding directorial positions for five years.

Yeo was also disqualified from managing corporations or acting as a director for a period of five years, in addition to the fine.

editor@asiaone.com