Updates on Criminal Prosecution in 2007 - Criminal Prosecution

Updates on Criminal Prosecution in 2007

No.	Nature of Offence	Offender(s)	Facts of Case	Date Charged
Criminal Prosecution Initiated - Persons Charged
1.	Abetted Megan Media Holdings Berhad in furnishing false statement to Bursa Malaysia	Kok Hen Sen	Kok Hen Sen, the former Financial Controller of Megan Media Holdings Berhad (hereinafter referred to as “MMHB”), have abetted MMHB who had with intent to deceive, furnished false statements to Bursa Malaysia. The false statements were in relation to MMHB’s Financial statement for the year ended 30 April 2006 and Quarterly Report on Consolidated Results for the Financial Period ended 31 July 2006, 31 October 2006 and 31 January 2007 respectively.	Kok and Mohd Adam were charged on 10 December 2007.
1.	Deemed to have committed the offence as a Executive Chairman and Director of MMHB	Mohd Adam Che Harun	Mohd Adam Che Harun, Executive Chairman and Director of MMHB, is deemed to have committed the offence when MMHB, with intent to deceive, furnished false statement to Bursa Malaysia. The false statement is in relation to MMHB’s Quarterly Report on Consolidated Results for the Financial Period ended 31 January 2007 respectively.	Kok and Mohd Adam were charged on 10 December 2007.
2.	Knowingly permits the making of misleading statement to Bursa Malaysia	Chin Keem Feung Shukri bin Sheikh Abdul Tawab	Chin and Shukri, the former Independent Non-Executive Director of Transmile Group Berhad (TGB) and also former members of Audit Committee of TGB, have knowingly authorised the furnishing of misleading statements to Bursa Malaysia. The misleading statement is in relation to TGB’s revenue and the same is contained in TGB’s “Quarterly Report On Unaudited Consolidated Results For the Financial Yer Ended 31 December 2006.” The charges alleged that both Chin and Shukri were aware that the statement on TGB’s revenue was misleading when they authorised the same for the submission to Bursa Malaysia on 15 February 2007.	Chin and Shukri were charged on 14 November 2007.
3.	Abet in the making of a statement that is misleading in material particular	Gan Boon Aun Lo Chok Ping Khiudin bin Mohd	Gan, Lo and Khiudin were charged for abetting Transmile Group Bhd (TGB) in making a statement that is misleading in a material particular in TGB’s quarterly report on unaudited consolidated results for the financial year ended 31 December 2006. At the material time, Gan was the Chief Executive Officer (CEO) of TGB, while Lo and Khiudin were the Chief Financial Officer (CFO) and Executive Director (ED) of TGB respectively.	Gan, Lo and Khiudin were charged on 12 July 2007.
4.	Causing to be issued a prospectus which contained misleading information	Dato’ Chee Kok Wing,	Chee was charged for committing an offence by causing the issuance of prospectus of NasionCom Holdings Bhd (NHB) which contained misleading information, namely the top 10 customers of NHB for the financial period ended 31 July 2004. This information was required to be submitted to the SC in connection with NHB’s proposal for listing on the MESDAQ Market of Bursa Malaysia Securities Bhd.	Chee was charged on 28 May 2007.
	Submission of false information to the SC		Chee was deemed to have committed an offence as he was the Director of NHB when it submitted false information to the SC contained in its 2005 annual report.
	Authorising the making of false statements in documents required to be kept under Section 167(1) of the Companies Act 1965		Chee was also charged for an offence under the Companies Act 1965 for authorising the making of false statements in documents which are used in the preparation of financial statement contained in the 2005 annual report
	Submission of false statement to the SC	Shamsul Khalid Ismail	Shamsul was deemed to have committed an offence as he was the Director of NHB when it submitted false information to the SC contained in its 2005 annual report.	Shamsul was charged on 28 May 2007.
	Submission of false statement to the SC	Mah Soon Chai	Mah was charged for committing an offence by abetting NHB in submitting false information to the SC. The false information is contained in NHB’s 2005 annual report.	Mah was charged on 28 May 2007.
5.	Submission of misleading information to SC in connection with a proposal	GP Ocean Food Bhd	GP Ocean Food Bhd (GP Ocean) misleading information to the SC: In its directors’ report and financial statements 31 January 2006; and In a list titled GP Ocean Food Bhd Group Top 10 Customers, submitted through Alliance Merchant Bank Bhd. The information was required to be submitted to the SC in connection with GP Ocean’s proposal for listing on the Main Board of Bursa Malaysia Securities Bhd.	GP Ocean was charged on 8 May 2007.
		Dato’ Lim Kim Ming	Lim was deemed to have committed an offence as he was the Director of GP Ocean Food Bhd (GP Ocean) when it submitted through Alliance Merchant Bank Bhd, misleading information to the SC contained in– Gropoint Fisheries Sdn Bhd’s directors’ report and audited financial statements 31 January 2006 on page 7; and Gropoint Seafood Industries Sdn Bhd’s directors’ report and audited financial statements 31 January 2006 on page 7. Gropoint Fisheries Sdn Bhd and Gropoint Seafood Industries Sdn Bhd are subsidiaries of GP Ocean. The information was required to be submitted to the SC in connection with GP Ocean’s proposal for listing on the Main Board of Bursa Malaysia Securities Bhd.	Lim was charged on 22 May 2007.
		Lim Kim Hai	Lim was deemed to have committed an offence as he was the Director of GP Ocean Food Bhd (GP Ocean) when it submitted through Alliance Merchant Bank Bhd, misleading information to the SC contained in GP Ocean’s directors’ report and financial statements 31 January 2006. This information was required to be submitted to the SC in connection with GP Ocean’s proposal for listing on the Main Board of Bursa Malaysia Securities Bhd.	Lim was charged on 22 May 2007.
		Lee Sin Teck	Lee was deemed to have committed an offence as he was the Director of GP Ocean Food Bhd (GP Ocean) when it submitted through Alliance Merchant Bank Bhd, misleading information to the SC contained in GP Ocean’s directors’ report and financial statements 31 January 2006. This information was required to be submitted to the SC in connection with GP Ocean’s proposal for listing on the Main Board of Bursa Malaysia Securities Bhd.	Lee was charged on 18 April 2007.
		Tan Siok Wan	Tan was deemed to have committed an offence as she was the Director of GP Ocean Food Bhd (GP Ocean) when it submitted through Alliance Merchant Bank Bhd, misleading information to the SC contained in a list titled “GP Ocean Food Bhd Group 10 Ten Customers”. This information was required to be submitted to the SC in connection with GP Ocean’s proposal for listing on the Main Board of Bursa Malaysia Securities Bhd.	Tan was charged on 18 April 2007.
6.	Knowingly authorising the furnishing of false statements to Bursa Malaysia	Ng Kim Weng	Ng, former Group Managing Director of Polymate Holdings Bhd (PHB) and Managing Director of ABI Malaysia Sdn Bhd (its wholly owned subsidiary), was charged for knowingly authorising the furnishing of false statements to Bursa Malaysia, namely the inflated revenue and trade receivables of PHB for the year ended 30 September 2003, as contained in PHB’s 2003 annual report.	Ng was charged on 7 February 2007.
Outcome of Criminal Prosecution
1.	Operating an illegal futures market	Jomi @ Umi bin Kamandan Kong Kim Fung Henny bin O Borubui Emorevest Sdn Bhd	Jomi, Kong, Henny and Emorevest operated an illegal futures market at the premises of Emorevest Sdn Bhd.	Jomi, Kong and Henny were charged on 12 December 2002. Emorevest was charged on 19 December 2002. The three accused persons and defendant company were acquitted and discharged by the Sessions Court on 11 May 2006 at the end of Prosecution’s case. On 29 November 2007, The High Court allowed the appeal by Prosecution and the case is reverted back to the Sessions Court for defence.
Outcome of Criminal Prosecution – Persons Acquitted
1.	Defrauding a stockbroking company	Ng Wu Hong	Ng, the CEO of Sarawak Securities Sdn Bhd (SSSB), was charged for being involved in a scheme to defraud SSSB by creating false collaterals in various margin accounts (phantom shares). The false collaterals were created for the purpose of making cash withdrawals, avoiding margin calls and absorbing purchases in various share-trading accounts. The false collaterals caused SSSB to suffer an exposure of RM36.4 million.	Ng was convicted and sentenced to two years’ imprisonment by the Sessions Court. On appeal to the High Court the conviction was overturned and Ng was acquitted and discharged. The Public Prosecutor filed a notice of appeal to the Court of Appeal against the decision of the High Court.
		Kho Cheng Wei	Kho, a margin clerk with SSSB, was charged for being involved in creating false collaterals in various margin accounts (phantom shares). The false collaterals caused SSSB to suffer an exposure of RM401,000.	Kho was convicted and sentenced to eight months’ imprisonment by the Sessions Court. On appeal to the High Court, the conviction was overturned and Kho was acquitted and discharged. The Public Prosecutor filed a notice of appeal to the Court of Appeal against the decision of the High Court.
		Lee Sai Lan	Lee, a margin clerk with SSSB, was charged for being involved in creating false collaterals in various margin accounts (phantom shares). The false collaterals caused SSSB to suffer an exposure of RM284,873.	Lee was acquitted and discharged by the Sessions Court. On appeal the High Court upheld the acquittal. The Public Prosecutor filed a notice of appeal to the Court of Appeal against the decision of the High Court.
Outcome of Criminal Prosecution - Persons Fined
1.	Operating an illegal futures market	Foong Seng Meng	Both Foong and Ahmad Wajdi operated an illegal futures market at a company called Delta Matrix Sdn Bhd.	Foong and Ahmad Wajdi were convicted of the offence and each fined RM300,000 (in default 24 months imprisonment) for the offence.
1.	Operating an illegal futures market	Ahmad Wajdi Lee bin Abdullah
2.	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 switching 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 were 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 by the Sessions Court. Lee and Tan appealed against the sentence imposed. On 20 April 2007, the High Court allowed Lee’s and Tan’s appeal on the sentence. The imprisonment sentence imposed by the Sessions Court was set aside. Lee and Tan were then both ordered by the High Court to pay fine RM30,000 each, in default 12 months’ imprisonment.
2.	Fraud involving IPO share applications Cheating	Tan Tiam Lay
3.	Person who abetted the submission of false report to the KLSE	Soh Chee Wen	Soh abetted Tiah Thee Kian in the furnishing of false reports to the KLSE in respect of off-market transactions of Omega Holdings Bhd shares (OHB) and OHB-A shares. The false reports related to the reporting of the OHB shares transaction by TA Securities Sdn Bhd that – 4,310,000 OHB shares were transacted at RM11.60 per share when in fact it was at RM6.45 per share; and 5,236,000 OHB-A shares were transacted at RM9.55 per share when in fact it was at RM6.45 per share. In sentencing, Soh also admitted to the offence of using a scheme to defraud Omega Securities Sdn Bhd for the purposes of section 171A of the Criminal Procedure Code.	Soh pleaded guilty and was convicted of both offences and and fined RM3 million (in default 30 months’ imprisonment) for each of the offence.

No record found.