No

Offence

Plaintiff(s)
(Defendants)

Brief facts of the case

1.

Company’s failure to comply with the requirements of CMSA
[s.58 & s.59 CMSA]

Zamani Bin Hamdan (1st Defendant)

Rantau Simfoni Sdn Bhd
(2nd Defendant)

The Defendants were not licensed by the SC to trade in futures contract, in breach of s.58 and s.59 of the CMSA. On 4 May 2010, SC obtained an injunction preserving clients’ funds and preventing the defendants from dealing with their monies amounting to RM198,040.00. A further order was made on 12 July 2010 ordering that the monies be transferred to the SC for the purposes of restitution. The SC is currently formulating a restitution process for return of the monies to the affected investors.

Attachments:

2.

Breached of regulatory requirements

[s.64(1)(b), s.64(1)(h), s.64(1)(i), s.64(1)(j) of the CMSA]

SJ Asset Management Sdn Bhd’s (SJAM)
(223993)

On 27 July 2010, SJAM’s license to undertake fund management activities was revoked after the SC found that SJAM breached regulatory requirements in relation to the safeguarding of clients’ assets and engaging in deceitful and improper business practices.

On 14 October 2010, SC’s petition at the High Court pursuant to Section 361 of the CMSA to wind up SJAM was granted. Dato Gan Ah Tee and Mr Mok Chew Yin of BDO Governance Advisory Sdn Bhd have been appointed as Liquidators.

Attachments:

3.

Making false or misleading statement

[s.177 of the CMSA]

Insider trading

[s.188 of the CMSA]

Kenmark Industrial (M) Sdn Bhd (Kenmark)

  • Ishak Ismail

Ishak Ismail as the majority shareholder of Kenmark was suspected of making false or misleading statements in relation to the condition of Kenmark which had the effect of raising the market price of Kenmark shares.

Datuk Ishak was also suspected of trading on Kenmark’s shares based on the inside information.

Attachments:

Swisscash Investor Restitution

On 8 April 2010, the High Court of Kuala Lumpur approved and sanctioned the eligibility criteria recommended by the Administrator and SC. The High Court approved the eligibility criteria, payment criteria and payment ratio to be used in compensating the investors. PricewaterhouseCoopers Advisory Services, the administrator appointed by SC for the restitution process, will commence making payouts from 15 April 2010 to the eligible investors. Eligible investors will receive payment by cheque which will be send via post. (No appeals will be entertained)

On 28 June 2010, the High Court of Kuala Lumpur approved and sanctioned a further eligibility criteria recommended by the Administrator and SC. The High Court approved that the cut-off date for investors residing outside Malaysia of the Swisscash scheme to be varied from 21st June 2007 to 7th July 2007. The eligibility criteria, payment criteria and payment ratio to be used in compensating the investors remains the same. PricewaterhouseCoopers Advisory Services, the administrator appointed by SC for the restitution process, will commence making payouts to eligible investors. Eligible investors will receive payment by cheque which will be send via post.

On 21 December 2011, the SC had provided a final status update to the Kuala Lumpur High Court on the Swisscash restitution scheme. The update was accompanied by the final report prepared by PricewaterhouseCoopers Advisory Services Sdn Bhd (“PwCAS”) which was appointed by the SC to administer the restitution scheme in 2010. The report sets out the restitution process and the payment criteria to eligible investors. In summary, the Administrator received 29,885 claims, totalling approximately RM188 million from Malaysian and foreign investors. Payouts totalling RM30.532 million were made to 19,625 eligible claimants. The SC now confirms that PwCAS has completed its functions as the Administrator for the distribution of the Swisscash settlement sum to eligible investors. As distribution of the funds available from the settlement sum has been completed in accordance with the eligibility criteria as reported to the Court, no further payments will be made to Swisscash investors.