Public Prosecutor v Wang Ziyi Able: Sentencing for Reckless Dissemination of False Information under the Securities and Futures Act
In Public Prosecutor v Wang Ziyi Able, the High Court of Singapore sentenced Wang Ziyi Able to six months' imprisonment for violating Section 199(b)(i) of the Securities and Futures Act by recklessly disseminating false information on an online forum regarding Datacraft Asia Limited. The court, presided over by V K Rajah JA, emphasized the importance of maintaining the integrity of Singapore's financial markets and the need for deterrent sentencing in such cases. The judgment was delivered on 2008-03-11.
1. Case Overview
1.1 Court
High Court1.2 Outcome
Custodial sentence warranted; accused sentenced to six months’ imprisonment.
1.3 Case Type
Criminal
1.4 Judgment Type
Grounds of Decision
1.5 Jurisdiction
Singapore
1.6 Description
Wang Ziyi Able was sentenced to six months' imprisonment for recklessly disseminating false information on an online forum, violating the Securities and Futures Act.
1.7 Decision Date
2. Parties and Outcomes
| Party Name | Role | Type | Outcome | Outcome Type | Counsels |
|---|---|---|---|---|---|
| Public Prosecutor | Appellant | Government Agency | Appeal Allowed | Won | Alvin Koh |
| Wang Ziyi Able | Respondent | Individual | Custodial Sentence | Lost | Philip Fong, Samantha Ong |
3. Judges
| Judge Name | Title | Delivered Judgment |
|---|---|---|
| V K Rajah | Justice of the Court of Appeal | Yes |
4. Counsels
| Counsel Name | Organization |
|---|---|
| Alvin Koh | Attorney-General's Chambers |
| Philip Fong | Harry Elias Partnership |
| Samantha Ong | Harry Elias Partnership |
4. Facts
- Respondent disseminated false information on an online forum about a CAD raid on Datacraft.
- The false information was likely to induce the sale of Datacraft shares.
- Respondent sold 111,000 Datacraft shares as “naked shorts” before posting the false information.
- Datacraft clarified that the rumors relating to the alleged raid were totally unfounded.
- Respondent had a Bachelor of Science degree in accounting and finance and was a seasoned private equities trader.
- The respondent did not honestly believe in the veracity of his own postings.
5. Formal Citations
- Public Prosecutor v Wang Ziyi Able, MA 226/2006, [2008] SGHC 37
- PP v Wang Ziyi Able, , [2006] SGDC 282
- PP v Wang Ziyi Able, , [2007] SGHC 204
- Rajendran s/o Kurusamy v PP, , [1998] 3 SLR 225
- PP v Tan Hor Peow Victor, , [2006] SGDC 148
- PP v Yip Hwai Chong, , [2006] SGDC 27
- PP v Law Aik Meng, , [2007] 2 SLR 814
- Ng Geok Eng v PP, , [2007] 1 SLR 913
- PP v Tan Fook Sum, , [1999] 2 SLR 523
- Tan Kay Beng v PP, , [2006] 4 SLR 10
- PP v Cheong Hock Lai, , [2004] 3 SLR 203
- PP v Chan Lye Huat, , [2007] SGDC 3
6. Timeline
| Date | Event |
|---|---|
| Sharp fall in Datacraft’s share price; respondent sold 700,000 shares at a loss. | |
| Respondent received SMS from Sam Wong about CAD raid on Datacraft. | |
| Respondent sold 111,000 Datacraft shares as “naked shorts”. | |
| Respondent posted on SI forum about CAD raid on Datacraft office. | |
| Datacraft made an announcement over MASNET clarifying that the rumours relating to the alleged raid were totally unfounded. | |
| District judge acquitted the respondent (PP v Wang Ziyi Able [2006] SGDC 282). | |
| Respondent convicted on appeal (PP v Wang Ziyi Able [2007] SGHC 204). | |
| High Court sentenced the accused to six months’ imprisonment. |
7. Legal Issues
- Reckless Dissemination of False Information
- Outcome: The court found the respondent guilty of recklessly disseminating false information.
- Category: Substantive
- Sub-Issues:
- Failure to verify information
- Inducement of sale of securities
- Appropriateness of Custodial Sentence
- Outcome: The court determined that a custodial sentence was warranted to serve as a deterrent and protect the public interest.
- Category: Procedural
- Sub-Issues:
- Deterrence
- Public Interest
- Proportionality
- Related Cases:
- [2007] 1 SLR 913
- [2007] 2 SLR 814
8. Remedies Sought
- Imprisonment
- Fine
9. Cause of Actions
- Violation of Section 199(b)(i) of the Securities and Futures Act
10. Practice Areas
- Criminal Litigation
- Securities Regulation
11. Industries
- Finance
12. Cited Cases
| Case Name | Court | Affirmed | Citation | Jurisdiction | Significance |
|---|---|---|---|---|---|
| PP v Wang Ziyi Able | District Court | Yes | [2006] SGDC 282 | Singapore | Cited as the initial district court decision where the respondent was acquitted. |
| PP v Wang Ziyi Able | High Court | Yes | [2007] SGHC 204 | Singapore | Cited as the grounds of decision for the appeal where the respondent was convicted; the present judgment refers extensively to this prior decision. |
| Rajendran s/o Kurusamy v PP | Court of Appeal | Yes | [1998] 3 SLR 225 | Singapore | Cited for the principle that a respondent's net loss should not be considered a mitigating factor; rather, it would amount to an aggravating factor if he had profited from his actions. |
| PP v Tan Hor Peow Victor | District Court | Yes | [2006] SGDC 148 | Singapore | Cited as a case where the accused fabricated fictitious revenue or false receipts, distinguishing it from the present case. |
| PP v Yip Hwai Chong | District Court | Yes | [2006] SGDC 27 | Singapore | Cited as a case where the accused fabricated fictitious revenue or false receipts, distinguishing it from the present case. |
| PP v Law Aik Meng | Court of Appeal | Yes | [2007] 2 SLR 814 | Singapore | Cited for the principle that the seriousness of a crime is a function of the degree of harmfulness of the conduct, coupled with the extent of the actor’s culpability in committing the offence. |
| Ng Geok Eng v PP | High Court | Yes | [2007] 1 SLR 913 | Singapore | Cited for the principle that the erstwhile reluctance to impose imprisonment for offences of market rigging should no longer prevail. |
| PP v Tan Fook Sum | High Court | Yes | [1999] 2 SLR 523 | Singapore | Cited for the principle that only the public interest should affect the type of sentence to be imposed while only aggravating or mitigating circumstances affect the duration or severity of the sentence imposed. |
| Tan Kay Beng v PP | Court of Appeal | Yes | [2006] 4 SLR 10 | Singapore | Cited for the principle that deterrence must always be tempered by proportionality in relation to the severity of the offence committed as well as by the moral and legal culpability of the offender. |
| PP v Cheong Hock Lai | High Court | Yes | [2004] 3 SLR 203 | Singapore | Cited to counter the argument that a deterrent sentence need not be custodial. |
| PP v Chan Lye Huat | District Court | Yes | [2007] SGDC 3 | Singapore | Cited for comparison of sentence with the present case. |
13. Applicable Rules
| Rule Name |
|---|
| No applicable rules |
14. Applicable Statutes
| Statute Name | Jurisdiction |
|---|---|
| Securities and Futures Act (Cap 289, 2006 Rev Ed) s 199(b)(i) | Singapore |
| Securities and Futures Act (Cap 289, 2006 Rev Ed) s 204 | Singapore |
15. Key Terms and Keywords
15.1 Key Terms
- Securities and Futures Act
- Dissemination of false information
- Market integrity
- Deterrent sentencing
- Recklessness
- Online forum
- Naked shorts
- CAD raid
- MASNET
- Disclosure-based regime
15.2 Keywords
- Securities and Futures Act
- false information
- market manipulation
- sentencing
- Singapore
- financial markets
16. Subjects
- Securities Law
- Criminal Law
- Financial Regulation
- Sentencing Principles
17. Areas of Law
- Securities Law
- Criminal Law
- Sentencing
- Financial Regulation