By Michelle Tay

AFTER managing to avoid losing $38,500, a former senior vice-president of finance at a publicly traded company now has to pay twice that amount as the penalty for insider trading.

The Monetary Authority of Singapore (MAS) yesterday took civil penalty enforcement action against Ms Chua Yang Joo, who was with medical device manufacturer Biosensors.

She is the third person so far this year to be found liable for contravening the Securities Futures Act (SFA) by trading shares while in possession of non-public price-sensitive information.

Biosensors International Group, a company listed on the Singapore Exchange, announced on May 26, 2006 that it incurred a net loss of US$22.5 million (S$33 million) for the financial year ended March 31, 2006.

After the announcement, Biosensors' share price dropped 8.4 per cent from the mid-day price to close at 81.5 cents.

Ms Chua, who was the company secretary and senior vice-president of finance at the time, had sold 100,000 Biosensors shares a month earlier, on April 25, 2006, while in possession of non-public price-sensitive information relating to the financial results, said MAS.

The trades were conducted prior to the blackout period imposed by Biosensors.

Mr Shane Tregillis, MAS' deputy managing director, explained: 'The law prohibits dealing while in possession of non-public price-sensitive information, regardless of whether the trades are conducted during or outside the blackout period.

'Accordingly, market participants should not trade at any time while in possession of such information.'

By selling her shares before the share price dropped, Ms Chua avoided a loss of $38,500, said MAS.

Last month, MAS filed its first civil suit against Mr Kevin Lew Chee Fai, former general manager of enterprise risk management at WBL Corporation, for alleged insider trading.

MAS lawyers had said in their statement of claim that Mr Lew's contravention of the SFA resulted in his avoiding a loss of approximately $27,000.

But Ms Chua has admitted to civil penalty liability for her offence and has cooperated fully during the course of MAS' investigation.

She will pay a civil penalty of $77,000 to MAS without court action.

This article was first published in The Straits Times.