Singapore – The criminal trial of Singapore-listed New Silk Route Group (NSG)’s former chief executive Goh Jin Hian and former chief executive Kelvin Wu Chong Kwan began on February 4, with prosecutors citing evidence including WhatsApp chats showing they discussed ways to inflate the company’s stock price to finance acquisitions and raise capital.

In September 2023, Goh, son of former Prime Minister Goh Chok Tong. Oh, a trained corporate lawyer. Two others, former finance director William Teo Thiam Chuan and GTC Group sole director Huang Yiwen, were charged with a total of 132 charges.

GTC Group is a commercial market maker that has partnered with New Silk Route to ensure sufficient liquidity in the market.

The prosecution’s first witness, Jacqueline Wei, a team leader in CAD’s securities fraud division, testified on February 4 that the investigation into NSG began after CAD discovered information that Hwang had “conducted false transactions with NSG executives” during an investigation into a separate case involving Hwang.

Mr Wei told the court that the investigation into Mr Huang was triggered by an “introduction” from the Singapore Exchange, and WhatsApp chat messages between Mr Huang and Mr Teo were subsequently discovered by CAD.

In June 2020, the CAD launched an investigation into Mr Teo, raiding his residence, recording his statements, searching his mobile phone and discovering chat messages with Mr Goh and Mr Wu. This “suggested knowledge of sham transactions” with Mr. Huang, she said.

Four months later, the CAD began investigating Mr Goh and Mr Wu for allegedly false trading in NSG shares, she added.

In 2023, each of the four individuals was indicted on 31 counts of participating in a conspiracy to make misleading misrepresentations regarding New Silk Route’s stock price.

They were accused of carrying out a “sophisticated, well-coordinated and effective” scheme between February 26, 2018 and August 27, 2018, to artificially inflate New Silk Route’s stock price and “effectively force (the company) to use its stock as currency for corporate transactions and acquisitions.”

The suspicious orders and transactions included stock buybacks made through the company’s corporate trading account.

Mr Goh, 57, served as chief executive officer of New Silk Route from 2015 to 2020. In 2020, Mr Goh, who completed his master’s degree in business administration in training, resigned as non-independent and non-executive group chairman.

Mr. Goh was also charged with eight securities regulation violations. He allegedly placed orders and executed trades in the company’s securities through his personal trading account at DBS Private Bank. The intention is to boost New Silk Route’s stock price over eight business days from August 31, 2018 to December 4, 2018.

On September 16, 2024, Mr Teo was sentenced to 12 weeks in prison after pleading guilty to manipulating the stock price of New Silk Route Co., Ltd. in order to enable the company’s shares to be used as consideration in corporate transactions. A further 25 charges were considered.

On August 15, 2025, Mr. Hwang pled guilty to 24 charges under the Securities and Futures Act, with 88 additional charges taken into consideration at sentencing, and was sentenced to two years, three months, and two weeks in prison.

New Silkroutes initially sold electronic and IT products, but later moved into the oil trading business. In December 2016, the company decided to expand into healthcare, and the following year it acquired multiple clinics and medical supply companies.

However, that effort was hampered by the stock price decline in 2017.

“Mr Goh and Mr Wu’s crimes were committed in the context of NSG’s use of its own shares as currency, either by issuing shares as consideration for acquisitions or by issuing new shares to raise capital,” Deputy Public Prosecutor Suhas Malhotra argued in his opening statement on February 4.

“This is important because NSG’s strategy is predicated on rising stock prices, and a decline in stock prices could derail any deals planned by NSG management,” the Democratic Party said.

“In a period of approximately 10 months, NSG issued (or promised to issue) more than 100 million new shares at prices ranging from 44 cents to 66.7 cents per share. This set the stage for the trading suspension (on November 29, 2017), the suspension and subsequent market rigging,” he said.

On February 25, 2018, just days after announcing three major transactions, NSG announced that it would resume trading in its shares the following day.

When trading resumed on February 26, 2018, Mr Goh, Mr Wu and Mr Teo began manipulating NSG’s share price, as they had been under pressure to comply with the prices at which NSG had already issued or promised to issue shares during the suspension.

The three then conspired with Hwang to artificially inflate NSG’s stock price “in order to achieve a specific target price set by NSG,” prosecutors said.

For example, in February 2018, NSG announced a memorandum of understanding with Haitong International Securities Group (Singapore) to issue a $5 million convertible bond. At Haitong’s option, the bonds may be converted into NSG shares at a price of $0.60 per share.

The WhatsApp chats “say a lot,” prosecutors noted.

In one chat on April 6, 2018, Mr Goh allegedly told Mr Teo: “I have to make it clear to GTC that I am very disappointed with the share price. I will not pay the monthly fees for the remaining months until the share price reaches $0.40 in May.”

“Failure to set these targets will affect how Haitong City and investors view our stock when conducting transactions,” Go said.

On another occasion on September 24, 2018, Mr. Goh “successfully marked the closing price,” or placed an order to artificially inflate the closing price of a security near the end of the trading day, purchasing 1,000 NSG shares at 25.5 cents and 100 NSG shares at 26 cents.

Without his intervention, NSG shares would have closed 25.5 cents lower, prosecutors said.

During a chat with Ms Wu and Mr Teo on September 24, 2018, Ms Goh is said to have said:

“I bought 1,100 shares today and closed at 0.26. I have said the same thing to market makers. We don’t need to bankrupt the banks to maintain the stock price,” Goh said.

A conviction under Section 197 of the Securities and Futures Act is punishable by up to seven years in prison, a fine of up to $250,000, or both.

The trial will resume on February 5th. Mr. Goh’s lawyer, Tan Chee Meng, a senior adviser at Wong Partnership, and Mr. Wu’s lawyer, Jason Chan, a senior adviser at Allen & Gledhill, will begin cross-examining Mr. Wei, who is also an investigator in the Hyflux trial.