(Corrects title of Alexander Molyneux to Blumont's
* Blumont, LionGold, Asiasons lost $6.35 billion market
value in October
* Authorities investigating possible breach of securities
* Police contact Blumont, LionGold
SINGAPORE April 3 Singapore's police force and
central bank are investigating suspected trading irregularities
in companies at the centre of a penny-stock crash last year, the
Monetary Authority of Singapore said late on Wednesday.
Share prices in Blumont Group Ltd, LionGold Corp
Ltd and Asiasons Ltd crashed last October,
wiping out around S$8 billion ($6.35 billion) in market value in
just two days after huge run-ups. The scandal led to a series of
proposed reforms to the city-state's stock trading rules.
The central bank said it is now working with white collar
crime police unit the Commercial Affairs Department (CAD) on
possible breaches of the Securities and Futures Act related to
trading in those three stocks.
Blumont earlier on Wednesday said its subsidiary, G1
Investments, had been contacted by the CAD and asked for all
corporate electronic data from January 2011 relating to its
executive chairman, Neo Kim Hock, and executive director James
In a statement to Singapore's stock exchange Blumont, which
mainly invests in mining assets, said the investigation is in
relation to an offence under the Securities and Futures Act
without giving any further details. Hong has also been asked to
assist the CAD directly, it said.
No information was immediately available from the police.
LionGold in a statement said its subsidiary, LionGold
Investments Pte Ltd, and the company has been informed by the
CAD of a similar investigation.
LionGold has received a notice from the CAD on corporate
data belonging to Lynne Ng Su Ling, a non-executive, independent
director of LionGold, and Peter Chen Hing Woon, an employee.
The CAD's notice requires LionGold to provide all corporate
electronic data of Ng and Chen from January 2011 to now, the
"CAD has not given any further details of its
investigations. So far, the board is not aware if any offence
has been committed and has not heard from Lynne Ng Su Ling or
Peter Chen Hing Woon in respect of the investigations," LionGold
said. The company could not be reached by Reuters for further
In their separate statements, both Blumont and LionGold said
their businesses and operations are not affected by the
investigations and will continue as normal.
Blumont's chairman-designate, Alexander Molyneux, said the
company was not able to comment further on the matter.
Asiasons has not released any statement on the matter.
Another Singapore company, Magnus Energy Group Ltd
, late on Wednesday said two of its subsidiaries and
one former subsidiary have also been asked to help the CAD with
investigations. Magnus Energy is a shareholder in LionGold,
according to Thomson Reuters data.
The company said its business and operations are not
affected by the investigations. It could not immediately be
reached for comment by telephone.
($1 = 1.2591 Singapore dollars)
(Reporting by Rachel Armstrong, Anshuman Daga and Andrew Toh;
Editing by Matt Driskill, Elaine Hardcastle and Christopher