Lee Chee Keet v Public Prosecutor: Appeal Against Sentence for Deceitful Securities Dealings
Lee Chee Keet appealed to the High Court of Singapore against a six-month imprisonment sentence imposed by the District Court for two charges of abetting a deceitful act in connection with dealings in securities, under s 201(b) of the Securities and Futures Act. Lee Chee Keet, a director and substantial shareholder of SNF Corporation Limited, was found to have deceptively used nominees to circumvent a moratorium imposed by the Singapore Exchange Securities Trading Limited on the transfer of his shareholdings in SNF. See Kee Oon JC reduced the sentence to four months' imprisonment for each charge, to run concurrently, finding that the District Judge had placed undue weight on certain considerations.
1. Case Overview
1.1 Court
High Court of the Republic of Singapore1.2 Outcome
Appeal Allowed in Part
1.3 Case Type
Criminal
1.4 Judgment Type
Grounds of Decision
1.5 Jurisdiction
Singapore
1.6 Description
Lee Chee Keet appealed against a six-month sentence for abetting deceitful securities dealings. The High Court reduced the sentence to four months.
1.7 Decision Date
2. Parties and Outcomes
| Party Name | Role | Type | Outcome | Outcome Type | Counsels |
|---|---|---|---|---|---|
| Lee Chee Keet | Appellant | Individual | Appeal Allowed in Part | Partial | Davinder Singh SC, Pardeep Singh Khosa, Navin S Thevar |
| Public Prosecutor | Respondent | Government Agency | Partial Loss | Partial | Christopher Ong Siu Jin, Haniza Abnass |
3. Judges
| Judge Name | Title | Delivered Judgment |
|---|---|---|
| See Kee Oon | Judicial Commissioner | Yes |
4. Counsels
| Counsel Name | Organization |
|---|---|
| Davinder Singh SC | Drew & Napier LLC |
| Pardeep Singh Khosa | Drew & Napier LLC |
| Navin S Thevar | Drew & Napier LLC |
| Christopher Ong Siu Jin | Attorney-General’s Chambers |
| Haniza Abnass | Attorney-General’s Chambers |
4. Facts
- Appellant used nominees to circumvent a moratorium on the sale of his SNF shares.
- Appellant concealed his beneficial ownership of SNF shares from the SGX.
- Appellant sold SNF shares during the moratorium period.
- Appellant failed to notify SNF and SGX of his share sales.
- Appellant made approximately $5.73m from the sale of SNF shares.
- The appellant was a director and substantial shareholder of SNF.
5. Formal Citations
- Lee Chee Keet v Public Prosecutor, Magistrate’s Appeal No 139 of 2015, [2016] SGHC 155
6. Timeline
| Date | Event |
|---|---|
| Appellant became a director and shareholder of Gennex Solutions (S) Pte Ltd. | |
| Nominees signed a share transfer agreement with the appellant. | |
| SNF was granted a conditional ETL. | |
| The four subsidiaries were officially acquired by SNF. | |
| Shares were sold in the open market between March 2004 and July 2004. | |
| Shares were sold in the open market between March 2004 and July 2004. | |
| Appellant maintained a Microsoft Excel spreadsheet which recorded the nominees’ securities trading account numbers. | |
| Appellant maintained a Microsoft Excel spreadsheet which recorded the nominees’ securities trading account numbers. | |
| Shares were sold through an off-market transaction in January 2005. | |
| The appellant was charged with 43 offences under the Companies Act and the SFA. | |
| The appellant pleaded guilty to and was duly convicted of the 14 charges that were proceeded with. | |
| The District Judge sentenced the appellant to six months’ imprisonment for each of the two charges under s 201(b) of the SFA and ordered the sentences to run concurrently. | |
| Hearing of the appeal. | |
| Oral judgment delivered. | |
| Full grounds for decision provided. |
7. Legal Issues
- Appropriateness of Custodial Sentence
- Outcome: The High Court found that a custodial sentence was warranted but reduced the length of the sentence.
- Category: Substantive
- Sub-Issues:
- Sentencing Norms
- Mitigating Factors
- Aggravating Factors
- Related Cases:
- [2015] 5 SLR 167
- [2008] 2 SLR(R) 1082
- [2007] 1 SLR(R) 913
- Sentencing Factors for s 201(b) Offences
- Outcome: The High Court considered the sentencing factors but found that the District Judge had accorded undue weight to certain considerations.
- Category: Procedural
- Sub-Issues:
- Extent of Loss/Damage
- Sophistication of Fraud
- Frequency and Duration of Offence
- Distortion of Financial Market
- Identity of Defrauded Party
- Relationship Between Offender and Defrauded Party
- Breach of Duty of Fidelity
- Related Cases:
- [2015] 5 SLR 167
8. Remedies Sought
- Appeal against sentence
9. Cause of Actions
- Abetting a deceitful act in connection with dealings in securities
10. Practice Areas
- Criminal Law
- Securities Regulation
11. Industries
- Finance
12. Cited Cases
| Case Name | Court | Affirmed | Citation | Jurisdiction | Significance |
|---|---|---|---|---|---|
| Public Prosecutor v Ng Sae Kiat and other appeals | High Court | Yes | [2015] 5 SLR 167 | Singapore | Cited for sentencing factors in s 201(b) offences. |
| Public Prosecutor v Wang Ziyi Able | High Court | Yes | [2008] 2 SLR(R) 1082 | Singapore | Cited regarding the appropriateness of custodial sentences in the absence of a fiduciary relationship or position of authority. |
| Public Prosecutor v Loo Kiah Heng and another | Singapore District Court | Yes | [2010] SGDC 434 | Singapore | Cited as a reference point for calibrating sentences for s 201(b) offences. |
| Public Prosecutor v Aniza bte Essa | Court of Appeal | Yes | [2009] 3 SLR(R) 327 | Singapore | Cited regarding the nature and objectives of the sentencing process. |
| Public Prosecutor v Chan Yoke Ling Catherine | Singapore District Court | Yes | [2004] SGDC 108 | Singapore | Cited regarding the differences between the sentencing process and a trial. |
| Biplob Hossain Younus Akan and others v Public Prosecutor and another matter | High Court | Yes | [2011] 3 SLR 217 | Singapore | Cited regarding the scope of sentencing submissions following a guilty plea. |
| Public Prosecutor v Cheong Hock Lai and other appeals | High Court | Yes | [2004] 3 SLR(R) 203 | Singapore | Cited regarding the sentencing norm for s 102(b) of the SIA offences. |
| Public Prosecutor v Sia Teck Mong and another | Singapore District Court | Yes | [2005] SGDC 249 | Singapore | Cited regarding the sentencing for contravention of SGX rules. |
| Ng Geok Eng v Public Prosecutor | High Court | Yes | [2007] 1 SLR(R) 913 | Singapore | Cited regarding the need to prove deception of an innocent member of the investing public who suffered losses. |
| Public Prosecutor v Law Aik Meng | High Court | Yes | [2007] 2 SLR(R) 814 | Singapore | Cited regarding the seriousness of a crime as a function of the degree of harmfulness and the actor’s culpability. |
| Abu Syeed Chowdhury v Public Prosecutor | High Court | Yes | [2002] 1 SLR(R) 182 | Singapore | Cited regarding the commission of an offence for personal gain as an aggravating sentencing consideration. |
| Vasentha d/o Joseph v Public Prosecutor | High Court | Yes | [2015] 5 SLR 122 | Singapore | Cited regarding the commission of an offence for personal gain as an aggravating sentencing consideration. |
| Chan Kum Hong Randy v Public Prosecutor | High Court | Yes | [2008] 2 SLR(R) 1019 | Singapore | Cited regarding the impact of inordinate delay in prosecution on sentencing. |
13. Applicable Rules
| Rule Name |
|---|
| No applicable rules |
14. Applicable Statutes
| Statute Name | Jurisdiction |
|---|---|
| Securities and Futures Act (Cap 289, 2002 Rev Ed) s 201(b) | Singapore |
| Penal Code (Cap 224, 1985 Rev Ed) s 109 | Singapore |
| Companies Act (Cap 50, 1994 Rev Ed) ss 165(1)(b) | Singapore |
| Companies Act (Cap 50, 1994 Rev Ed) s 166(1) | Singapore |
| Companies Act s 83(1) | Singapore |
| Securities and Futures Act s 137(1) | Singapore |
| Securities Industry Act (Cap 289, 1986 Rev Ed) s 102(b) | Singapore |
| Securities and Futures Act s 199(b)(i) | Singapore |
| Penal Code s 24 | Singapore |
15. Key Terms and Keywords
15.1 Key Terms
- Moratorium
- Nominee
- Securities and Futures Act
- Singapore Exchange Securities Trading Limited
- Beneficial Ownership
- Shareholding
- Deceitful Act
- Sentencing
- Market Misconduct
15.2 Keywords
- Securities
- Fraud
- Moratorium
- Shares
- Singapore
- Criminal
- Appeal
16. Subjects
- Securities Law
- Criminal Law
- Sentencing
- Appeals
17. Areas of Law
- Criminal Procedure
- Sentencing
- Securities Law
- Appeals