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[h=2]MAS: Dr Lu has ‘no intention’ to deceive the SGX[/h]
December 27th, 2012 |
Author: Editorial
Dr Jiade Jay Lu
In a statement released on 13 Dec [Link], the Singapore Stock Exchange (SGX) said that it found omission of information in Healthway Medical Corporation’s announcement on director appointment.
It said that it has investigated an announcement, issued by Healthway Medical Corporation Limited (Healthway) on 14 July 2009, on the appointment of Dr Lu Jiade as an independent director. The investigation concluded that the disclosure in the announcement was inaccurate pursuant to Catalist Rule 704(6). It further said that the announcement failed to disclose disciplinary proceedings and actions against Dr Lu while he was practising as a doctor in the US.
Dr Lu has admitted that the inaccurate declaration to Healthway and the sponsor, PrimePartners Corporate Finance Pte Ltd (PrimePartners), was an “error on his part” and arose due to his “limited corporate experience” prior to his appointment.
=> "Limited corporate experience", but still being appointed as Director? What gives?
In fact, Dr Lu was struck off from Florida’s medical register after he was caught selling the prescription drug Viagra online illegally in 1999 (‘Foreign doctor with license revoked in U.S. now employed by NUH in Singapore‘). He was then struck off from the medical register of Florida. Subsequently, he made his way to Singapore in 2001 and found a job with NUH. He has since been working in NUH/NCIS for the past 11 years.
Dr Lu then served as an Independent Director of Healthway Medical Corporation Ltd since 14 Jul 2009 until Mar 2012, without disclosing to the public the disciplinary proceedings and actions against him while he was practising as a doctor in the US (‘Dr Lu was a Director of a public listed company and declared he was not a subject of any past disciplinary proceedings‘).
According to the Statutes of Singapore, it is a criminal offence to furnish false statements to securities exchange under section 330(1) of the Securities and Futures Act (Cap 289). Those found guilty are liable on conviction to a fine up to $50,000 or to imprisonment for a term not exceeding 2 years or to both.
TR Emeritus (TRE) then wrote to the Monetary Authority of Singapore (MAS) for comments and asked if MAS would take any legal actions against Dr Lu. MAS has since replied that Dr Lu’s case does not warrant any investigation under section 330(1) of the Securities and Futures Act (Chapter 289).
MAS said that section 330(1) only applies where a person has provided false or misleading statements or report to SGX and has done so with the intent to deceive. It appears that SGX/MAS have deemed Dr Lu’s non-disclosure was an “error on his part” without any intent to deceive. Hence, no action on the part of MAS is required. TRE produced MAS’ reply in full below:
Considering the latest “ruling” by MAS, Dr Lu (being a much valued ‘foreign talent’) is very very very very very very unlikely to be taken to task by SMC for his “honest mistakes” done with no “intent to deceive”.
.
Join our TRE facebook page here: http://www.facebook.com/TREmeritus
In a statement released on 13 Dec [Link], the Singapore Stock Exchange (SGX) said that it found omission of information in Healthway Medical Corporation’s announcement on director appointment.
It said that it has investigated an announcement, issued by Healthway Medical Corporation Limited (Healthway) on 14 July 2009, on the appointment of Dr Lu Jiade as an independent director. The investigation concluded that the disclosure in the announcement was inaccurate pursuant to Catalist Rule 704(6). It further said that the announcement failed to disclose disciplinary proceedings and actions against Dr Lu while he was practising as a doctor in the US.
Dr Lu has admitted that the inaccurate declaration to Healthway and the sponsor, PrimePartners Corporate Finance Pte Ltd (PrimePartners), was an “error on his part” and arose due to his “limited corporate experience” prior to his appointment.
=> "Limited corporate experience", but still being appointed as Director? What gives?
In fact, Dr Lu was struck off from Florida’s medical register after he was caught selling the prescription drug Viagra online illegally in 1999 (‘Foreign doctor with license revoked in U.S. now employed by NUH in Singapore‘). He was then struck off from the medical register of Florida. Subsequently, he made his way to Singapore in 2001 and found a job with NUH. He has since been working in NUH/NCIS for the past 11 years.
Dr Lu then served as an Independent Director of Healthway Medical Corporation Ltd since 14 Jul 2009 until Mar 2012, without disclosing to the public the disciplinary proceedings and actions against him while he was practising as a doctor in the US (‘Dr Lu was a Director of a public listed company and declared he was not a subject of any past disciplinary proceedings‘).
According to the Statutes of Singapore, it is a criminal offence to furnish false statements to securities exchange under section 330(1) of the Securities and Futures Act (Cap 289). Those found guilty are liable on conviction to a fine up to $50,000 or to imprisonment for a term not exceeding 2 years or to both.
TR Emeritus (TRE) then wrote to the Monetary Authority of Singapore (MAS) for comments and asked if MAS would take any legal actions against Dr Lu. MAS has since replied that Dr Lu’s case does not warrant any investigation under section 330(1) of the Securities and Futures Act (Chapter 289).
MAS said that section 330(1) only applies where a person has provided false or misleading statements or report to SGX and has done so with the intent to deceive. It appears that SGX/MAS have deemed Dr Lu’s non-disclosure was an “error on his part” without any intent to deceive. Hence, no action on the part of MAS is required. TRE produced MAS’ reply in full below:
We refer to your e-mail dated 14 December 2012 in relation to SGX’s recent statement on Healthway Medical Corporation (the “Company”).
2 SGX’s statement sets out its findings and views following the conclusion of its investigation into the announcement issued by the Company on 14 July 2009 concerning the appointment of an independent director.
3 SGX has apprised MAS of its findings and course of action. SGX’s investigation has not revealed any information that warrants an investigation under section 330(1) of the Securities and Futures Act (Chapter 289). You may wish to note that section 330(1) only applies where a person has provided false or misleading statements or report to SGX and has done so with the intent to deceive. The statement or report must also relate to the matters set out in section 330(1).
Yours sincerely
.
Alex Lee
Deputy Director
Corporate Finance Division
Capital Markets Department
Monetary Authority of Singapore
Now that SGX and MAS have spoken and cleared Dr Lu, it remains to be seen how the Singapore Medical Council (SMC) is going to deal with Dr Lu. The SMC is a statutory board under MOH in charge of maintaining the Register of Medical Practitioners in Singapore, administering the compulsory continuing medical education (CME) programme and also governing and regulating the professional conduct and ethics of registered medical practitioners in Singapore.2 SGX’s statement sets out its findings and views following the conclusion of its investigation into the announcement issued by the Company on 14 July 2009 concerning the appointment of an independent director.
3 SGX has apprised MAS of its findings and course of action. SGX’s investigation has not revealed any information that warrants an investigation under section 330(1) of the Securities and Futures Act (Chapter 289). You may wish to note that section 330(1) only applies where a person has provided false or misleading statements or report to SGX and has done so with the intent to deceive. The statement or report must also relate to the matters set out in section 330(1).
Yours sincerely
.
Alex Lee
Deputy Director
Corporate Finance Division
Capital Markets Department
Monetary Authority of Singapore
Considering the latest “ruling” by MAS, Dr Lu (being a much valued ‘foreign talent’) is very very very very very very unlikely to be taken to task by SMC for his “honest mistakes” done with no “intent to deceive”.
.
Join our TRE facebook page here: http://www.facebook.com/TREmeritus
