How did the former CIMB VP illegally profit from insider information?

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Former CIMB VP Illegally Profited Through Insider Trading of Qualitas and Leeden Shares

Alan Tay Yeow Kee, a former vice president at CIMB Bank Bhd, illegally profited approximately S$30,000 (RM89,386) by engaging in insider trading. This illicit gain was achieved by arranging for the purchase of shares in Qualitas Medical Group Limited and Leeden Limited while possessing non-public, price-sensitive information about takeover offers for both companies. Tay's prohibition from trading for five years by the Monetary Authority of Singapore, effective July 30, 2018, stems from these actions.
Possession of Non-Public Takeover Information

Tay obtained privileged information regarding impending takeover bids for Qualitas Medical Group Limited and Leeden Limited. This information was considered non-public and price-sensitive, meaning its disclosure would likely influence the market price of the companies' shares. He acquired this inside knowledge by virtue of his employment at CIMB, where he held the position of vice president between November 2010 and November 2016.
Arrangement of Share Purchases

Leveraging his access to this confidential information, Tay orchestrated the acquisition of shares in both Qualitas and Leeden in 2011. He arranged for another individual to execute these share purchases on his behalf, thus concealing his direct involvement. This strategy was employed while he was in possession of the knowledge that both companies were subject to takeover offers, information not yet available to the general investing public.
Realisation of Profit After Information Disclosure

Following the official announcement of the takeover offers for Qualitas Medical Group Limited and Leeden Limited, the market responded as anticipated. The share prices of both companies experienced a notable increase. Tay subsequently realised a profit of around S$30,000 (RM89,386) from the shares he had acquired using the insider information, effectively capitalising on the market's reaction to the disclosed takeover bids.
Conviction and Sentencing for Insider Trading

The consequence of Tay's actions led to his conviction in May 2017. He was found guilty of insider trading under section 219(2)(b) of the Securities and Futures Act. As a result of his conviction on three charges, with three other charges taken into consideration during sentencing, he was fined S$180,000 (RM536,292) by the Monetary Authority of Singapore.

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How did the former CIMB VP illegally profit from insider information?

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