No.

Nature of Offence

Offender(s)

Facts of Case

Action

OUTCOME OF CRIMINAL PROSECUTION – PERSONS JAILED
1. Dishonest dealers who cheat investors Haron Jambari

Haron, a dealer, made a false statement of a material fact to his client, Majlis Agama Islam Wilayah Persekutuan, relating to the purchase of Petronas Dagangan Bhd (PDB transaction) shares.

Haron was also charged and convicted for criminal breach of trust (CBT) in connection with the PDB transaction where RM2 million of Baitumal funds were misappropriated.

Convicted and sentenced to three years’ imprisonment and RM1 million fine (in default two years’ imprisonment). Haron filed an appeal against conviction and sentence. The sentence is stayed pending appeal.
2. Dishonest employees who cheat their employers in share transactions Nik Aziz Nik Mohd Amin

Nik Aziz, an accountant in Majlis Agama Islam, abetted Haron Jambari in making the false statement to his employer on the PDB share transaction.

Nik Aziz was also charged and convicted for CBT and corrupt practices in connection with the PDB transaction.

Convicted and sentenced to three years’ imprisonment and fined RM1 million (in default two years’ imprisonment). Nik filed an appeal against his conviction and sentence. The sentence is stayed pending appeal.
3. Persons who defrauded stockbroking companies Ng Wu Hong Ng, the CEO of Sarawak Securities Sdn Bhd, was involved in a scheme to defraud Sarawak Securities by creating false collaterals in various margin accounts. The false collaterals were created for the purpose of making cash withdrawals, avoiding margin calls and absorbing purchases in various share trading accounts (among others). Ng’s actions caused Sarawak Securites to suffer an exposure of RM44 million. Convicted and sentenced to two years’ imprisonment. Ng filed an appeal against his conviction and sentence. The sentence is stayed pending appeal.
Kho Cheng Wei Kho, a margin clerk, was personally involved in creating “phantom shares” to fictitiously increase the margin equity of various margin accounts in Sarawak Securities. Kho’s actions caused Sarawak Securities to suffer a total exposure of RM199,699. Convicted and sentenced to eight months’ imprisonment. Kho appealed against his conviction and sentence. The sentence is stayed pending appeal.
OUTCOME OF CRIMINAL PROSECUTION – PERSONS FINED
4. Persons who made false statements to the SC and the KLSE Datuk Tiah Thee Kian

Datuk Tiah furnished false statements to the KLSE in respect of his off-market dealings in shares of Omega Holdings Bhd. Datuk Tiah had falsely reported–

  • that TA Securities transacted 28,036,000 Omega shares at RM11.50 per share when in fact it was done at RM6.45 per share; and
  • that TA Securities transacted 7,010,000 Omega-A shares at RM9.80 per share when in fact it was done at RM6.45 per share.
Convicted and fined RM3 million (in default three years’ imprisonment).
5. Persons who gave investment advice without an investment adviser’s licence Anuar Abdul Aziz

Anuar Aziz, an unlicensed investment adviser, made investments recommendations to participants during an investment seminar.

Convicted and fined RM150,000 (in default 12 months’ imprisonment).
6. Unlicensed futures traders who cheated investors (bucketing) Lew Lee Yin Lew, a Director of North American Resources Consultant Sdn Bhd (NAREC), had personal knowledge of 22 bogus futures transactions. NAREC’s investors were deceived into believing that their orders were actually transacted on the Hong Kong Futures Exchange, when in fact it was never the case. Convicted and fined RM100,000.
7. Short selling

Yong Kon Fah @ Yong Kong Fah

Mohd Tahir A Rahman

Chan Wan Kee

Soon Kong Yiaw

Ting Hsing Tong
These individuals were involved in selling shares which they did not own, an offence under the Securities Industry Act 1983. Convicted and fined between RM25,000 to RM105,000.
CRIMINAL PROSECUTION INITIATED – PERSONS CHARGED
8. Persons who defrauded stockbroking companies Dato’ Soh Chee Wen Dato’ Soh was charged for his involvement in certain contango and off-market transactions that were carried out in various margin accounts at Omega Securities. Those transactions caused the withdrawal of sale proceeds totalling approximately RM520 million from Omega Securities when the margin positions in those accounts were under-collateralised. Dato’ Soh was charged on 14 May 2002.
9. Directors of PLCs who utilised company funds for unapproved purposes Datuk Hj Ishak Hj Ismail Datuk Ishak – a Director of Idris Hydraulic (M) Bhd – was charged for abetting the company to redirect RM50 million of public proceeds for purposes in breach of the the SC’s condition.

Datuk Ishak was charged on 28 June 2002.

The charge was withdrawn on 6 March 2003 following the payment of compound totalling RM500,000 for the offence.

10. Spot commodity and index trading firms who cheated the public into investing in foreign-listed commodity futures and indices Tay Choon Way Tay was charged for operating an illegal futures market at a company called ATT Ventures Sdn Bhd. Tay was charged on 22 May 2002.
Tang Wai Kin
Hwang Sheung Tat (Hong Kong citizens)
Both Tang and Hwang were charged for operating an illegal futures market at a company called Twin Portfolio Sdn Bhd. Both were charged on 3 May 2002.
Jomi @ Umi Kamandan
Kong Kim Fung
Henny O Borubui
Emorevest Sdn Bhd
Jomi, Kong, Henny and Emorevest were charged for operating an illegal futures market at a company called Emorevest Sdn Bhd. Jomi, Kong and Henny were charged on 12 December 2002. Emorevest was charged on 19 December 2002.
11. Stock market manipulators
Tan Soon Geok @ Tan Soon Leng
Esmail Naziadin

Tan was charged for abetting a dealer to manipulate the share price of General Soil Engineering Holdings Bhd (Gensoil). Esmail, the said dealer, was charged together with Tan for the same offence.

Tan was also charged for furnishing a false statement to the SC in respect of his dealings in Gensoil shares.

Both Tan and Esmail were charged on 11 November 2002.
Puniyamurti a/l Perianan
Mohd Raffique Ibrahim Sahib
Ariffin Abdul Majid
Puniyamurti, Mohd Raffique and Ariffin were charged for manipulating the warrant price of Actacorp Holding Bhd. Mohd Raffique, Ariffin and Puniyamurti were charged on 28 November 2002.
12. Director who submitted false information to the SC and KLSE Lim Chai Hock

Lim, a Director of Tat Sang Bhd, was charged for submitting false information to the SC in respect of the company’s listing proposal. The false information relate to–

an agreement to purchase rubberwood from a third party when in fact the agreement was fictitious; and
fixed assets balance that was inflated through to inclusion of fictitious invoices.

Lim was also charged for authorising the furnishing of false statements to the KLSE in respect of Tat Sang’s annual accounts for the year ended 31 July 2000. The false statements relate to–

fixed assets balance that was inflated due to inclusion of fictitious invoices;
other debtors balance that was inflated due to the inclusion of payments pursuant to ficitious agreements; and
revenue figure that was inflated due to inclusion of ficitious sales.
Lim was charged on 12 December 2002.
13. Illegal fund managers
Nublan Zaky Yusoff
Siti Mariam Berahim
Nublan and Siti Mariam were not licensed to carry out activities of a fund manager’s representative for Perdana Technology Ventures Sdn Bhd. Both were charged on 26 September 2002.
14. Irresponsible fund management company who engaged unlicensed persons to carry out its activities Dr Barjoyai Bardai As the director for Perdana Technology Ventures Sdn Bhd, Dr Barjoyai allowed two unlicensed persons to act as the company’s fund manager’s representative. Dr Barjoyai was charged on 27 September 2002.
15. Persons who sold shares which they did not own (short selling) Ahmad Shkri Ramli As the CEO of Permodalan BSN Bhd, Ahmad Shkri abetted Permodalan BSN to short sell 202 lots of AKN Tech Bhd shares for its client, Amanah Raya Bhd. Ahmad Shkri was charged on 16 January 2002.
Ting Hsing Tong Ting short sold 53 lots of Autoways Holdings Bhd shares. Ting was charged on 8 February 2002.
Teng Tin Kau @ Ting Sun Chow Teng short sold 80 lots of Autoways Holdings Bhd shares. Teng was charged on 8 February 2002.
Soon Kong Yiaw Soon short sold 10 lots of Transocean Holdings Bhd shares. Soon was charged on 27 August 2002.