Updates on Criminal Prosecution in 2004 - Criminal Prosecution

Updates on Criminal Prosecution in 2004

No.	Nature of Offence	Offender(s)	Facts of Case	Date Charged
Outcome of Criminal Prosecution - Persons Acquitted
1.	Short selling	CIMB Securities Sdn Bhd	CIMB Securities was charged for short selling because its dealer’s representative Ng Wai Hong had short sold 22,000 units of Arab Malaysian Corporation Bhd shares on 29 August 1997. CIMB was charged on 11 December 1997. Ng pleaded guilty to the charge on 17 December 2004.	As a result of the plea of guilt of Ng, Prosecution withdrew the charge against CIMB Securities.
2.	Submission of false statement to the SC in connection with proposal submitted	Tan Siew Hui	Tan, the group financial controller of TCL Premier Holdings Bhd, had caused a letter dated 6 January 1997 that contained false information to be submitted to SC.	Tan was acquitted and discharged by the Sessions Court on 6 January 2004 at the end of Prosecution’s case. Prosecution appealed against the decision of the Sessions Court. This matter is currently pending appeal.
Criminal Prosecution Initiated - Persons Charged
1.	Failing to advise the SC upon becoming aware, before proposal was fully implemented, that information submitted to the SC may be false Causing to be issued a prospectus containing information from which there is a material omission Causing to be issued a prospectus which contained false information	Wira Tjakrawinata	Wira, also known as Kenneth Chow, failed to inform the SC upon becoming aware, before Omega Holdings Bhd’s proposal was fully implemented, that the information on the sales concession agreement between Milan Auto (M) Sdn Bhd and Fiat Auto SpA may be false. Wira was also charged for causing to be issued Energro Bhd’s prospectus that contained information from which there is a material omission pertaining to the said sales concession agreement. The third charge Wira is facing is for causing to be issued Energro Bhd’s prospectus that contained false information namely, the revenue for 2003 is RM82.336 million and the number of Alfa Romeo cars sold in 2003 is 558.	Both Wira and Ng were charged on 14 October 2004.
1.	Causing to be issued a prospectus which contained false information	Ng Chee Loong	Ng, principal of Messrs Ng & Associates, was charged for causing to be issued Energro Bhd’s prospectus that contained false information namely Milan Auto (M) Sdn Bhd’s turnover for 2003 is RM82.336 million.	Both Wira and Ng were charged on 14 October 2004.
2.	Securities fraud Criminal breach of trust	Yip Yee Foo Chung Wai Meng	Yip and Chung, directors of Cold Storage (Malaysia) Bhd (CSM), were charged for defrauding CSM by transferring RM185 million of CSM’s funds to pay for the purchase of CSM shares by Fulham Finance and Trade Ltd and Excoplex Sdn Bhd. Yip and Chung were both charged in the alternative for criminal breach of trust of the said RM185 million.	Yip and Chung were charged on 24 September 2004.
3.	Breach of condition of the SC’s approval Criminal breach of trust	Dato’ Tan Hooi Chong	Dato’ Tan, a director of Kiara Emas Asia Industries Bhd (KEAIB), was charged for committing criminal breach of trust in relation to RM16,937,739.20 of the rights issue proceeds of KEAIB on three occasions. He was also charged with three alternative charges of abetting KEAIB in breaching the terms and conditions imposed by the SC in relation to the utilisation of KEAIB’s rights issue proceeds.	Dato’ Tan was charged on 16 September 2004.
4.	Officer/any other person who submitted false information/ statement to the SC	Tan Kam Sang Ravandaran a/l Thangeveloo	Tan was the accountant of Kiara Emas Asia Industries Bhd (KEAIB) while Ravandaran was the audit partner of Messrs. Arthur Andersen & Co. who was in-charge of KEAIB’s audit. They are both charged for furnishing false information to the SC in the “Follow Up Questionnaires” for the financial years ended 31 March 1997, 1998, 1999 and 2000 on the status of utilisation of rights issue proceeds when in fact RM16,937,739.20 of KEAIB’s rights issue proceeds was fully utilised by 31 December 1996 in contravention of the SC’s conditions.	Both Tan and Ravandaran were charged on 13 August 2004.
5.	Falsification of records of a futures broker	K Sivachandran a/l Kuhiappan	Sivachandran, a licensed futures brokers representative, was charged for having caused information contained within the order forms and order book of AOF Futures Sdn Bhd, a licensed futures broker, to be falsified. The information that was allegedly falsified was in relation to account numbers belonging to clients under Sivachandran’s management.	Sivachandran was charged on 7 May 2004.
Outcome of Criminal Prosecution - Persons Fined
1.	Short selling	Ng Wai Hong	Ng, a dealer’s representative of CIMB Securities Sdn Bhd short sold 22,000 units of Arab Malaysian Corporation Bhd shares on 29 August 1997. Ng was charged on 11 December 1997. On 17 December 2004, Ng pleaded guilty to the offence at the stage of submissions at the close of prosecution’s case.	Ng was fined RM300,000 (in default one year’s imprisonment). The fine was paid.
2.	Short selling	CIMB Securities Sdn Bhd (CIMB Securities)	CIMB Securities, Credit Lyonnais and Ng short sold 141,000 units of Proton Bhd shares.	CIMB Securities, Credit Lyonnais and Ng were charged on 11 December 1997. CIMB Securities, Credit Lyonnais and Ng were convicted on 17 May 2004. CIMB Securities and Credit Lyonnais were fined RM400,000 each and Ng was fined RM200,000 (in default one year’s imprisonment). The fine was paid. CIMB Securities, Credit Lyonnais and Ng filed an appeal against the conviction and sentence. Prosecution filed cross-appeals against all parties on the sentences.
		Credit Lyonnais Securities Pte Ltd (Credit Lyonnais)
		Ng Wai Hong
Criminal Prosecution Initiated - Persons Charged
1.	Misleading statements in connection with the purchase of securities	Wahid Ali Kassim Ali	Wahid Ali, the Director of Aiwanna Management Assets Sdn Bhd (Aiwanna) was charged with three counts for omitting to state a material fact pertaining to the investment of Aiwanna’s client, Eastern Pacific Industrial Corporation Bhd (EPIC), in the purchase of bonds. The material fact omitted caused the statement of accounts issued to EPIC for the month of December 2001, January 2002 and February 2002, to be misleading.	Wahid was charged on 19 October 2005.
2.	Market manipulation	Wong Chee Kheong Ng Chong Yeng Bun Lit Chun	Wong, Ng and Bun were charged, in furtherance of their common intention, for creating a misleading appearance with respect of the price of Suremax Group Bhd (Suremax) shares on Bursa Malaysia through 153 CDS accounts. Further, an alternative common intention charge was preferred against them for creating a misleading appearance of active trading in Suremax shares through the said accounts which did not involve any change in beneficial ownership and had the effect of raising the price of the shares.	Wong, Ng and Bun were charged on 25 October 2005.
3.	Maintaining more than one CDS account at any authorised depository agent (ADA)	Yunus M. Haniff	Yunus was charged with two counts for maintaining seven CDS accounts at two ADAs for the purposes of applying for IPO shares of K&N Kenanga Holdings Bhd in 1996. Ramly was charged for abetting Yunus in the commission of the offences.	Yunus and Ramly were charged on 26 October 2005.
4.	Operating an futures market without licence	Yanto	Yanto, an Indonesian citizen with permanent resident status in Singapore, was charged for operating an illegal futures market between 10 March 2003 and 27 May 2003 at Unique Mega Marketing Sdn Bhd, Suite 3B-20-7, Level 20, Block 3B, Plaza Sentral, Jalan Stesen Sentral 5, 50470 Kuala Lumpur.	Yanto was charged on 25 November 2005.
5.	Operating an illegal futures market	Koh Chin Heng @ Xu Zhenxing	Koh, a Singaporean citizen, operated an illegal futures market between 20 March 2003 and 27 May 2003 at Unique Mega Marketing Sdn Bhd, Unit 12.08, Level 12, Amcorp Tower, Amcorp Trade Center, 18 Persiaran Barat, 46050 Petaling Jaya, Selangor.	Koh was charged on 13 October 2005.
6.	Market manipulation	(Dato’) Chin Chan Leong	Two charges were preferred against Chin for – creating a misleading appearance of active trading in Fountain View Development Bhd (FVDB) shares through transactions that did not involve any change in beneficial ownership; and causing to be created a misleading appearance with respect to the price of FVDB through transactions that did not involve any change in beneficial ownership, on Bursa Malaysia through 20 central depository securities accounts. Hiew, former remisier at Avenue Securities Sdn Bhd, was charged for abetting Chin in the two said offences.	Chin and Hiew were charged on 27 June 2005.
6.	Market manipulation	Hiew Yoke Lan (Joanne)		Chin and Hiew were charged on 27 June 2005.
7.	Engaging in an act that operated as a fraud on a public listed company Criminal breach of trust	(Dato’ Lybrand) Ngu Tieng Ung	Two charges were preferred against Ngu, Director of Pancaran Ikrab Bhd (PIB) at the material time, for engaging in an act that operated as a fraud on PIB by utilising RM15.5 million of PIB’s funds to finance the purchase of PIB shares when the money was not meant to be utilised for that purpose. Ngu was also charged for committing criminal breach of trust in respect of RM21.5 million of PIB’s funds. Ngu is also faced with an alternative charge to the three charges for committing criminal breach of trust involving RM37 million of PIB’s funds. Wong was charged as an abettor to Ngu on all the aforesaid charges.	Ngu and Wong were charged on 5 May 2005.
7.		(Daniel) Wong Jit Kiang		Ngu and Wong were charged on 5 May 2005.
8.	Causing to be submitted false information to the SC in connection with a proposal	Yap Kim Seng	Yap Kim Seng, the Managing Director, and Yap Kim Fatt, the Executive Director, of Pasaraya Hiong Kong Sdn Bhd (PHK), were charged for causing to be submitted to the SC false information, namely the revenue of PHK for the year ended 31 March 2003. This information was submitted in connection with Ocean Capital Bhd’s proposed corporate restructuring exercise which included the proposed acquisition of PHK.	Yap Kim Seng and Yap Kim Fatt were charged on 25 April 2005.
8.		Yap Kim Fatt
Criminal Prosecution Initiated - Persons Jailed
1.	Fraud involving IPO share applications Cheating	Lee Han Kong	Lee and Tan engaged in an act which operated as a fraud upon UPA Corporation Bhd (UPA), namely, by the switching of successfully balloted envelopes of UPA share applications with envelopes that were not put through the balloting process. On 27 July 2004, alternative charges were preferred against Lee and Tan for cheating UPA by deceiving UPA into believing certain applications for the initial public offering of the UPA shares had been successfully balloted when in fact the applications were not balloted. UPA was dishonestly induced to allot the shares to those applicants.	Lee and Tan were both charged on 20 March 2000. Lee and Tan pleaded guilty to the alternative charge of cheating and were convicted on 5 May 2005. They were sentenced to 20 months imprisonment. Lee and Tan have filed an appeal against the sentence imposed and have obtained a stay execution of the imprisonment sentence pending their appeal.
1.	Fraud involving IPO share applications Cheating	Tan Tiam Lay
Criminal Prosecution Initiated - Persons Fined
1.	Utilisation of public issue proceeds for purposes other than as approved by the SC Criminal breach of trust	Gwi Chin Fatt	Gwi, director of Plantation & Development Bhd (P&D), was charged on 22 February 2001 for abetting P&D in utilising its public issue proceeds amounting to RM26,493,335.57 for purposes other than as approved by the SC. Gwi, was also charged in the alternative, for criminal breach of trust in respect of the misutilisation of P&D’s public issue proceeds in contravention of conditions imposed by the SC.	Gwi pleaded guilty and was convicted on 25 July 2005 for abetting P&D in mis-utilising the public issue proceeds. Gwi was fined RM500,000 (in default 15 months’ imprisonment). Upon the plea of guilt for the principle charge, Gwi was acquitted and discharged from the alternative charge for criminal breach of trust.
2.	Utilisation of public issue proceeds for purposes other than as approved by the SC	Yong Tiam Yoon	Yong, Chief Executive Officer of Plantation & Development Bhd (P&D), was charged on 22 February 2001 for abetting P&D in utilising its public issue proceeds amounting to RM26,493,335.57 for purposes other than as approved by the SC.	Yong pleaded guilty and was convicted on 9 August 2005 for abetting P&D in mis-utilising the public issue proceeds. Yong was fined RM600,000 (in default 20 months’ imprisonment).

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