Prosecution witness Ken Tai admits to using omnibus accounts to hide illegal 'wash trades'

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SINGAPORE (Jan 10): Prosecution witness Ken Tai Chee Ming has admitted to using omnibus accounts to prevent authorities from detecting his illegal “wash trading” activities.

Furthermore, Tai revealed he had engaged in this practice, even though John Soh Chee Wen and Quah Su-Ling — the alleged masterminds behind the 2013 penny stock crash, whom Tai was supposedly taking instructions from — had specifically ordered him to avoid wash trades.

A wash trade involves a trade made by an account holder to sell and buy the same stock, thus manipulating the market by artificially creating a misleading illusion of activity in the market.

By using an omnibus account, which combines transactions of a group of accounts in the name of the brokerage firm instead of individual account holders, Tai confessed that...(click on link for full story on theedgesingapore.com)