KUALA LUMPUR: A Singaporean man who allegedly led an international insider trading and money-laundering scheme, is set to be extradited to the United States (US) following his arrest on July 3.
The Straits Times of Singapore reported that Ge Zhi, 33, was brought to the State Courts a day after his arrest, where he was ordered to be held under the Extradition Act.
The US, said the report, will be filing extradition papers to bring Ge to the district court in Massachusetts.
Ge, along with his alleged co-conspirators, is accused by US authorities of making tens of millions of dollars in illegal profits through a securities fraud scheme.
The scheme involved receiving confidential information about at least 10 companies which traded on the US stock exchange.
This insider information included details on financial performance and merger-and-acquisition activities, obtained from company insiders. Ge allegedly recruited others to trade based on this information and directed them on when to trade and withdraw their proceeds.
US investigators claim the illegal profits were laundered through various means, including cash payments and international financial transactions to conceal the sources of the proceeds and the identities of the scheme's participants.
Ge is specifically accused of instructing a co-conspirator to transfer SGD$300,000 in illicit proceeds to a Hong Kong bank account under the guise of a payment to an antique watch dealer.
A Singapore Police Force spokesperson confirmed that an arrest warrant was issued on June 28 for offenses allegedly committed in the US but declined to provide further details as the matter is before the courts.
Ge's lawyer and a US Department of Justice spokesperson both declined to comment.
In court on July 4, State Counsel Anupriya A. Daniel requested Ge's remand for seven days pending an extradition request from the US.
The US has an extradition treaty with Singapore, and the authorities had specifically asked for Ge to be apprehended.
When asked by District Judge Brenda Tan if he wished to consent to surrender to the US, Ge refused.
Under the Extradition Act, fugitives can consent to their extradition, waiving the proceedings to save state resources and prevent prolonged detention. Ge maintained his refusal during his second court appearance on July 10.
State Counsel Daniel again requested that Ge be remanded for a week, pending a formal extradition request.
Ge asked for a bail hearing, but Senior District Judge Ong Hian Sun denied the request.
Ge is scheduled to return to court on July 16.