Former fund manager Sun charged for acts likely to defraud investors
Former fund manager Sun Weiyeh was charged in court on Oct 22 under the Securities and Futures Act (SFA) for acts that were likely to
defraud investors.
Sun was a director of One Asia Investment Partners (OAIP) from October 2014 to January 2017. OAIP’s licence was revoked by the Monetary Authority of Singapore (MAS) in April 2017.
He faces two charges under section 201(b) of the SFA for engaging in acts that were likely to defraud investors of a fund managed by OAIP.
Sun is accused of selling two bonds at lower than market prices from the fund to another OAIP fund when he knew that there were offers at higher prices for the bonds.
Sun, as part of running OAIP, was managing a fund called Arion Asia Credit Fund – High Yield Basis Fund. According to the charge sheet, back in Jan 19, 2016, Sun sold US$2.5 million worth of bonds, known as MIEHOL 180206 Mie Holdings Corp 2013/2018, at US$25.375 to Pareto Securities.
According to the charge sheet, Sun did so even though he was aware that there was an offer of US$33 for the same block of bonds.
Then, he bought back the same block of bonds through Pareto, at US$25.50, and put those bonds back into another fund also managed by OAIP: Arion Asia Credit Fund — Investment Grade Bond Fund II.
In a second charge, Sun on Jan 19, 2016 allegedly repeated the same actions but on a different block of bonds. From the Arion Asia Credit Fund — High Yield Basis Fund, he sold US$1.5 million worth of MIEHOL 190425 Mie Holdings Corp 2014/2019 at US$21.875 to Pareto, even though he knew there was an offer at US$32. He then bought back the same block via Arion Asia Credit Fund — Investment Grade Bond Fund II at a price of US$22.
The investigation was jointly conducted by MAS and the Commercial Affairs Department of the Singapore Police Force.
If convicted, for each charge of section 201(b) of the SFA, he faces a fine of up to $250,000 or an imprisonment for a term of up to seven years, or both.