Regulatory Settlements in 2013

Regulatory Settlement with OCBC Bank (M) Berhad
On 2 December 2013, the SC entered into a settlement with OCBC Bank (M) Berhad (OCBC) when the latter agreed without admission or denial of liability, to settle a civil claim that the SC was proposing to institute against it with respect to the manipulation of DRB-Hicom Berhad shares on 25 July 2011, contrary to section 176(1)(b) of the Capital Markets and Services Act 2007 (CMSA).The settlement was reached following a letter of demand sent by the SC pursuant to its civil enforcement powers under the securities laws, where the sum that OCBC was required to disgorge was RM2,475,000 which is equivalent to three times the pecuniary gain of RM825,000 which OCBC had made as a result of the breach. In accordance with section 200(3) of the CMSA, the amount recovered from OCBC will be used first to reimburse the SC for all costs of the investigation and proceedings. Any remaining amount, if available, will be used to compensate the investors who suffered loss as a result thereof.

Regulatory Settlement with OCBC Bank (M) Berhad

On 2 December 2013, the SC entered into a settlement with OCBC Bank (M) Berhad (OCBC) when the latter agreed without admission or denial of liability, to settle a civil claim that the SC was proposing to institute against it with respect to the manipulation of DRB-Hicom Berhad shares on 25 July 2011, contrary to section 176(1)(b) of the Capital Markets and Services Act 2007 (CMSA).The settlement was reached following a letter of demand sent by the SC pursuant to its civil enforcement powers under the securities laws, where the sum that OCBC was required to disgorge was RM2,475,000 which is equivalent to three times the pecuniary gain of RM825,000 which OCBC had made as a result of the breach.

In accordance with section 200(3) of the CMSA, the amount recovered from OCBC will be used first to reimburse the SC for all costs of the investigation and proceedings. Any remaining amount, if available, will be used to compensate the investors who suffered loss as a result thereof.

Regulatory Settlement for The Malaysian Insider
On 24 October 2013, K.A Jahabar Sadiq a/l K.A Abdul Kader issued an apology and a public retraction to the SC on The Malaysian Insider’s website with regard to an article published on August 10, 2012 headlined “SC to order Sime general offer for E&O, say sources”.The settlement was made following a letter of demand issued by the SC to K.A Jahabar Sadiq a/l K.A Abdul Kader requesting him to make a full and unequivocal retraction of the said article which was attributed to the SC and to publish a statement by him that the article dated 10 August 2012 was untrue and published without prior verification with the SC.The retraction was published on The Malaysian Insider’s website for a period of 3 days, beginning from 24 October 2013 until 26 October 2013, before it was archived on the website.

Regulatory Settlement for The Malaysian Insider

On 24 October 2013, K.A Jahabar Sadiq a/l K.A Abdul Kader issued an apology and a public retraction to the SC on The Malaysian Insider’s website with regard to an article published on August 10, 2012 headlined “SC to order Sime general offer for E&O, say sources”.The settlement was made following a letter of demand issued by the SC to K.A Jahabar Sadiq a/l K.A Abdul Kader requesting him to make a full and unequivocal retraction of the said article which was attributed to the SC and to publish a statement by him that the article dated 10 August 2012 was untrue and published without prior verification with the SC.The retraction was published on The Malaysian Insider’s website for a period of 3 days, beginning from 24 October 2013 until 26 October 2013, before it was archived on the website.

Regulatory Settlement with Lew @ Leow Muy Lai
On 26 August 2013, the SC entered into a settlement with Lew @ Leow Muy Lai in the sum of RM122,436 when she agreed without admission or denial of liability, to settle a claim that the SC was proposing to institute against her for insider trading in the shares of Worldwide Holdings Berhad (Worldwide) on 9 July 2006, contrary to section 89E of the Securities Industry Act 1983 (SIA).The settlement was reached following a letter of demand sent by the SC pursuant to its civil enforcement powers under the securities laws, where the sum Lew @ Leow Muy Lai was required to disgorge was equivalent to two times the difference between the price at which the shares were acquired and the price at which they would have been likely to have been acquired at the time of the acquisition, if the information had been generally available.In accordance with the provisions of section 90A(7)) of the SIA, the amount recovered from Lew @ Leow Muy Lai will be used first to reimburse the SC for all costs of investigations and proceedings. Any remaining amount, if available, will be used to compensate the sellers who sold their Worldwide shares before the information became generally available.

Regulatory Settlement with Lew @ Leow Muy Lai

On 26 August 2013, the SC entered into a settlement with Lew @ Leow Muy Lai in the sum of RM122,436 when she agreed without admission or denial of liability, to settle a claim that the SC was proposing to institute against her for insider trading in the shares of Worldwide Holdings Berhad (Worldwide) on 9 July 2006, contrary to section 89E of the Securities Industry Act 1983 (SIA).The settlement was reached following a letter of demand sent by the SC pursuant to its civil enforcement powers under the securities laws, where the sum Lew @ Leow Muy Lai was required to disgorge was equivalent to two times the difference between the price at which the shares were acquired and the price at which they would have been likely to have been acquired at the time of the acquisition, if the information had been generally available.In accordance with the provisions of section 90A(7)) of the SIA, the amount recovered from Lew @ Leow Muy Lai will be used first to reimburse the SC for all costs of investigations and proceedings. Any remaining amount, if available, will be used to compensate the sellers who sold their Worldwide shares before the information became generally available.

Regulatory settlement with Tan Yeong Kim & She Tu Shwu Fen
On 1 August 2013, the SC entered into a settlement with Tan Yeong Kim and She Tu Shwu Fen in the sum of RM106,550.31 when they agreed without admission or denial of liability, to settle a claim that the SC was proposing to institute against them for insider trading in the shares of Orisoft Technology Berhad (Orisoft) between 17 May 2007 to 29 October 2008, contrary to section 89E of the Securities Industry Act 1983 and section 188 of the Capital Markets and Services Act 2007 (CMSA).The settlement was reached following letters of demand sent by the SC pursuant to its civil enforcement powers under the securities laws, where the sums both of them were required to disgorge was equivalent to three times the difference between the price at which the shares were acquired and the price at which they would have been likely to have been acquired at the time of the acquisition, if the information had been generally available.In accordance with the provisions of section 90A(7)) of the SIA and section 201(7) of the CMSA, the amount recovered from them will be used first to reimburse the SC for all costs of investigations and proceedings. Any remaining amount if available will be used to compensate the sellers who sold their Orisoft shares before the information became generally available.

Regulatory settlement with Tan Yeong Kim & She Tu Shwu Fen

On 1 August 2013, the SC entered into a settlement with Tan Yeong Kim and She Tu Shwu Fen in the sum of RM106,550.31 when they agreed without admission or denial of liability, to settle a claim that the SC was proposing to institute against them for insider trading in the shares of Orisoft Technology Berhad (Orisoft) between 17 May 2007 to 29 October 2008, contrary to section 89E of the Securities Industry Act 1983 and section 188 of the Capital Markets and Services Act 2007 (CMSA).The settlement was reached following letters of demand sent by the SC pursuant to its civil enforcement powers under the securities laws, where the sums both of them were required to disgorge was equivalent to three times the difference between the price at which the shares were acquired and the price at which they would have been likely to have been acquired at the time of the acquisition, if the information had been generally available.In accordance with the provisions of section 90A(7)) of the SIA and section 201(7) of the CMSA, the amount recovered from them will be used first to reimburse the SC for all costs of investigations and proceedings. Any remaining amount if available will be used to compensate the sellers who sold their Orisoft shares before the information became generally available.

Regulatory settlement with Chua Siow Leng
On 8 August 2014, the SC entered into a settlement with Chua Siow Leng in the sum of RM1,099,231.44 when he agreed without admission or denial of liability, to settle a claim that the SC was proposing to institute against him for insider trading in the shares of WCT Berhad between 2 January and 5 January 2009, contrary to section 188(2) of the Capital Markets and Services Act 2007 (CMSA). The settlement was reached following a letter of demand sent by the SC pursuant to its civil enforcement powers under the securities laws, where the sum Chua was required to disgorge was equivalent to three times the difference between the price at which the shares were disposed and the price at which they would have been likely to have been disposed of at the time of the disposal, if the information had been generally available. The monies recovered will be applied in accordance with section 201(7) CMSA.

Regulatory settlement with Chua Siow Leng

On 8 August 2014, the SC entered into a settlement with Chua Siow Leng in the sum of RM1,099,231.44 when he agreed without admission or denial of liability, to settle a claim that the SC was proposing to institute against him for insider trading in the shares of WCT Berhad between 2 January and 5 January 2009, contrary to section 188(2) of the Capital Markets and Services Act 2007 (CMSA). The settlement was reached following a letter of demand sent by the SC pursuant to its civil enforcement powers under the securities laws, where the sum Chua was required to disgorge was equivalent to three times the difference between the price at which the shares were disposed and the price at which they would have been likely to have been disposed of at the time of the disposal, if the information had been generally available. The monies recovered will be applied in accordance with section 201(7) CMSA.