No.

Nature of Offence

Offender(s)

Facts of Case

Date Charge

CRIMINAL PROSECUTION INITIATED – PERSONS CHARGED
1. Director who permitted the furnishing of false statement to the KLSE Peter Ling Ee Kong Peter Ling, a director of Wembley Industries Holdings Bhd (WIHB) was charged for knowingly and willfully permitting the furnishing of a false statement to the KLSE in relation to WIHB’s affairs. The false statement was contained in WIHB’s announcement to KLSE dated 25 February 1998 which stated that none of the directors or substantial shareholders of WIHB have any interest, direct and/or indirect, in the disposal of its subsidiaries when in fact he had an indirect interest in it. Peter Ling was charged on 31 October 2003.
2. Spot commodity and index trading firms who cheated the public into investing in foreign- listed commodity/futures and indices Lye Ek Seang Lye was charged for operating and establishing an illegal futures market at a company called Ambang Pintar Sdn Bhd.

Lye was charged on 22 October 2003.

The charge was withdrawn on 24 June 2004 following the payment of compound totalling RM500,000.

3. Spot commodity and index trading firms who cheated the public into investing in foreign- listed commodity/futures and indices Foong Seng Meng
Both Foong and Ahmad Wajdi were charged for operating an illegal futures market at a company called Delta Matrix Sdn Bhd.
Foong and Ahmad Wajdi were charged on 12 September 2003.
Ahmad Wajdi Lee Abdullah
4. Submission of false information to the SC, failure to maintain trust account for client’s money and concealment of records to obstruct audit carried out by the SC Muhamad Khalid Ismail

Muhamed Khalid, a director of Oasis Asset Management Sdn Bhd (Oasis) (formerly known as Corporate Eight Asset Management Sdn Bhd), was charged for the following:

  • Submitting false statements to the SC in relation to the funds managed by Oasis;
  • Concealing records of Oasis in relation to the investment made by Koperasi Angkatan Tentera Malaysia Bhd (KATMB) totaling RM45 million with the intent to obstruct an audit carried out by the SC;
  • Failing to maintain a trust account for the investment received from KATMB; and
  • Criminal breach of trust in connection with RM16.5 million of the investment received from KATMB.
Muhamad Khalid was charged on 2 September 2003.
5. Illegal fund manager Anuar Abdul Aziz Anuar carried out the functions of a fund manager’s representative for Corporate Eight Asset Management Sdn Bhd (now known as Oasis Asset Management Sdn Bhd) without a licence. Anuar was charged on 2 September 2003.
6. Persons who opened CDS accounts using different names and identity cards to facilitate multiple IPO share applications Gan Yew Chok Gan used the identities of third parties to open numerous CDS accounts when in fact he was the beneficial owner of the account. The accounts were opened to facilitate Gan’s multiple IPO share applications. Gan was charged on 30 April 2003.
7. Irregular operation of client’s trust account Ghazali Atan Ghazali, a director of Metrowangsa Asset Management Sdn Bhd a licensed fund manager, was charged for utilising funds in the trust account of Lembaga Tabung Haji to pay Mimos Bhd. Ghazali was charged on 12 March 2003.
8. Irregular operation of client’s trust account and submission of misleading information to the SC Mohamed Abdul Wahab

Mohamed, a director of Metrowangsa Asset Management Sdn Bhd (MAM) (a licensed fund manager), was charged for utilising funds in the trust account of Lembaga Tabung Haji to pay Mimos Bhd.

Mohamed was also charged for submitting misleading statement to the SC by excluding a portion of the investments of Lembaga Tabung Haji and Mimos Bhd from MAM’s semi-annual reports to the SC.

Mohamed was charged on 12 March 2003.
9. Spot commodity and index trading firms who cheated the public into investing in foreign-listed commodity futures and indices

Siaw Pou Wui

Tay Choon Way

Both Siaw and Tay were charged for operating an illegal futures market at a company called Empire Atlantic Sdn Bhd. Siaw and Tay were charged on 10 February 2003.

No.

Nature of Offence

Offender(s)

Facts of Case

Punishment

OUTCOME OF CRIMINAL PROSECUTION – PERSONS JAILED
1. Director who submitted false statement to the SC and KLSE Lim Chai Hock

Lim, a director of Tat Sang Holdings Bhd (Tat Sang), knowingly authorised 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 through the inclusion of fictitious invoices;
other debtors balance that was inflated through the inclusion of payments pursuant to fictitious agreements; and
revenue figure that was inflated through the inclusion of fictitious sales.

On 3 September 2003, Lim pleaded guilty and was convicted. In sentencing, the Sessions Court took into consideration one outstanding offence relating to the submission of false information to the SC in respect of Tat Sang’s listing proposal that was admitted by him.

Lim was sentenced to five years’ imprisonment by the Sessions Court.

On 19 December 2003, the High Court exercised its revisionary powers upon an application by Lim and reduced the custodial sentence to five months and imposed a monetary fine of RM200,000 in default two months’ imprisonment.

No.

Nature of Offence

Offender(s)

Facts of Case

Punishment

OUTCOME OF CRIMINAL PROSECUTION – PERSONS FINED
1. Spot commodity and index trading firms who cheated the public into investing in foreign- listed commodity futures and indices

Siaw Pou Wui

Tay Choon Way

Both Siaw and Tay were charged for operating an illegal futures market at a company called Empire Atlantic Sdn. Bhd.

Siaw and Tay were charged on 10 February 2003.

On 27 May 2003, Siaw was convicted by the Sessions Court and fined RM20,000. Prosecution filed an appeal against the sentence.

On 8 October 2003, the High Court allowed Prosecution’s appeal and enhanced fine imposed on Siaw to RM100,000 in default six months’ imprisonment.

Tay’s charge was taken into consideration in sentencing for his conviction for operating an illegal futures market at ATT Ventures Sdn Bhd. He was fined RM220,000.

2.

Illegal fund manager’s representative

Nublan Zaky Yusoff

Nublan carried out the functions of a fund manager’s representative for Perdana Management and Consultantcy Sdn Bhd (now known as Perdana Technology Venture Sdn Bhd) without a licence.

Nublan pleaded guilty and was convicted on 23 September 2003. He was fined RM600,000 in default one year’s imprisonment.

He appealed against the sentence. The appellate court allowed his appeal and reduced the sentence to a RM240,000 fine, in default nine months’ imprisonment.

He had until September 2005 to pay the fine.

3. Giving false information to the SC in connection with proposal submitted Gan Kok Beng Gan, a director of Ganad Corporation Bhd (Ganad), was charged for submitting false information to the SC, which was provided in Ganad’s audited accounts for two financial year ends, in connection with Ganad’s listing proposal. The turnover, trade debtors and profit before tax figures reflected in the audited accounts were inflated.

Gan was charged on 15 May 2001.

He was convicted on 25 March 2003 for the offence of submitting false information and in sentencing, the court took into consideration the other outstanding offence of giving false statement, to which Gan had admitted.

He was fined RM600,000 and in default six months’ imprisonment. The fine was paid.

4. Defrauding clients of an asset management company

Criminal breach of trust

Wan Muhammad Hasni Wan Sulaiman Wan Muhammad Hasni, the Executive Chairman of Abrar Global International Sdn Bhd (AGI), was charged on 24 July 1999, for engaging in an act that operated as a fraud on clients of Abrar Global Asset Management Sdn Bhd (AGAM), a wholly owned subsidiary of AGI, by causing the mis-utilisation of clients’ funds totalling RM5 million that was meant for investment purposes.

Wan Muhammad Hasni was also charged in the alternative for criminal breach of trust involving the RM5 million of client funds. In respect of this alternative charge, the Sessions Court found that there was no prima facie case made out against Wan Hasni at the end of the prosecution’s case.

Please refer to year 2006’s folder for the outcome of the appeal.
5. Stock market manipulation Puniyamurti a/l Perianan Puniyamurti was charged for manipulating the price of Actacorp Holding Bhd warrants (Actacorp warrants) by actively purchasing the Actacorp warrants in September 1997 and December 1997. These purchases accounted for between 42.27% to 78.95% and 30.96% to 100% of the total daily purchases during the respective period and affected the price of the Actacorp warrants. Convicted and fined of RM3 million.
6. Spot commodity and index trading firms who cheated the public into investing in foreign- listed commodity futures and indices

Tang Wai Kin

Hwang Sheung Tat

(both Chinese citizens from Hong Kong)

Tang and Hwang operated an illegal futures market at Twin Portfolio Sdn Bhd.

Tang was convicted and in sentencing the court took into consideration two outstanding offences that was admitted by him. He was fined RM300,000 and in default six months’ imprisonment.

Hwang was fined RM250,000 in default five months’ imprisonment.

Tay Choon Way Tay operated an illegal futures market at ATT Ventures Sdn Bhd. Tay was convicted for operating an illegal futures market at ATT Ventures Sdn Bhd and his charge for operating an illegal futures market at Empire Atlantic Sdn Bhd was taken into consideration during sentencing. He was fined RM220,000.