Global Yellow Pages CEO Stanley Tan loses $25.4m in 2 days in financial products, sues UBS

Yellow Pages CEO loses $25.4m in 2 days, sues UBS

Saturday, Jul 06, 2013, AsiaOne

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SINGAPORE – Global Yellow Pages CEO Chen Bao Neng (Stanley Tan) is taking UBS to court after he suffered losses amounting to $25.4 million in just two days. According to Lianhe Zaobao, the 55-year-old executive director had invested in 16 financial products through UBS from October 2007 to August the following year. He then lost $25.4 million in the 2008 financial crisis. Although he suffered the losses more than five years ago, and had repaid the debt before last January, Mr Chen regarded this as a breach of contract by UBS.

He then brought UBS to court in February this year.

In court documents, Chen accused UBS of not complying with the International Swaps and Derivatives Association (ISDA) agreements’ stipulated grace period, resulting in his huge losses.

He also said UBS reneged on the agreement by selling his account in the stock prematurely, and for doing so without his permission.

A pre-trial conference is scheduled for July 22.

However, UBS said it had given Mr Chen earlier notice that he could sell at a loss, and that he was the one who ordered the selling of the financial product.

It also claimed that it had informed Mr Chen that he could top up his accounts in October 2008, but the top-ups were insufficient to cover the losses.

UBS also claimed that it had called Mr Chen on October 22 to notify him about the situation, and that he had agreed to terminate all his investments.

According to UBS’ guidelines, they have the right to terminate financial products if the customer is unable to meet margin calls.

Retired at 35

According to Shin Min Daily News, Mr Chen is a holder of the Public Service Star who retired at 35 years old.

Media reports said Mr Chen became wealthy through a printing company. He later diversified his portfolio and became the largest shareholder of Global Yellow Pages, holding a 17.61% stake in the company.

He is also reportedly a public-spirited, serving as the director of several charitable organisations. Mr Chen was awarded the Public Service Star medal in 2011.

According to the National Volunteer & Philanthropy Centre website, He became the agency’s fourth president in November 2007.

About bambooinnovator
Kee Koon Boon (“KB”) is the co-founder and director of HERO Investment Management which provides specialized fund management and investment advisory services to the ARCHEA Asia HERO Innovators Fund (www.heroinnovator.com), the only Asian SMID-cap tech-focused fund in the industry. KB is an internationally featured investor rooted in the principles of value investing for over a decade as a fund manager and analyst in the Asian capital markets who started his career at a boutique hedge fund in Singapore where he was with the firm since 2002 and was also part of the core investment committee in significantly outperforming the index in the 10-year-plus-old flagship Asian fund. He was also the portfolio manager for Asia-Pacific equities at Korea’s largest mutual fund company. Prior to setting up the H.E.R.O. Innovators Fund, KB was the Chief Investment Officer & CEO of a Singapore Registered Fund Management Company (RFMC) where he is responsible for listed Asian equity investments. KB had taught accounting at the Singapore Management University (SMU) as a faculty member and also pioneered the 15-week course on Accounting Fraud in Asia as an official module at SMU. KB remains grateful and honored to be invited by Singapore’s financial regulator Monetary Authority of Singapore (MAS) to present to their top management team about implementing a world’s first fact-based forward-looking fraud detection framework to bring about benefits for the capital markets in Singapore and for the public and investment community. KB also served the community in sharing his insights in writing articles about value investing and corporate governance in the media that include Business Times, Straits Times, Jakarta Post, Manual of Ideas, Investopedia, TedXWallStreet. He had also presented in top investment, banking and finance conferences in America, Italy, Sydney, Cape Town, HK, China. He has trained CEOs, entrepreneurs, CFOs, management executives in business strategy & business model innovation in Singapore, HK and China.

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