Regulatory Settlements in 2014

Regulatory Settlement with Lim Teck Seng and Yap Moy Kheng
On 8 December 2014, Lim Teck Seng and Yap Moy Kheng entered into a settlement with the SC in the sum of RM327,487.80 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 Inti Universal Holdings Berhad (“Inti”) between 14 and 19 September 2007, contrary to section 89E(2) of the Securities Industry Act 1983 (“SIA”). The inside information was in relation to a notice that was served to Inti by its controlling shareholders, Inti Supreme Holdings Sdn Bhd (“Inti Supreme”) on 18 September 2007 that Inti Supreme had received a proposal from Laureate Education, Inc. to acquire the controlling interest in Inti for an aggregate purchase consideration of RM126.6 million which translated to RM1.20 per Inti share, which was subsequently set out in an announcement made by Inti to Bursa Malaysia on 19 September 2007. The settlement was reached following letters of demand sent by the SC pursuant to its civil enforcement powers under the securities laws, where the sum they 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 the shares would have been likely to have been acquired at the time of the acquisition, if the information had been generally available. The monies recovered will be applied in accordance with section 90A(7) of the SIA.
Regulatory Settlement with Tan Yew Sing
On 4 December 2014, Tan Yew Sing entered into a settlement with the SC in the sum of RM778,258.92 when he agreed without admission or denial of liability, to settle a claim that the SC was proposing to institute against him for communicating inside information contrary to section 89E(3) of the Securities Industry Act 1983 (“SIA”) to one Puan Chan Cheong (“Puan CC”) who then traded in the shares of Inti Universal Holdings Berhad (“Inti”) on 18 and 19 September 2007. The information related to a notice that was served to Inti by its controlling shareholders, Inti Supreme Holdings Sdn Bhd (“Inti Supreme”) on 18 September 2007 that Inti Supreme had received a proposal from Laureate Education, Inc. to acquire the controlling interest in Inti for an aggregate purchase consideration of RM126.6 million which translated to RM1.20 per Inti share, which was subsequently set out in an announcement made by Inti to Bursa Malaysia on 19 September 2007. 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 Tan was required to disgorge was equivalent to three times the difference between the price at which Puan CC acquired the shares and the price at which the shares would have been likely to have been acquired at the time of the acquisition, if the information had been generally available. The monies recovered will be applied in accordance with section 90A(7) of the SIA.
Regulatory settlement with Siva Kumar a/l M.Jeyapalan and Dato’ Azmil Khalili Bin Dato’ Khalid
On 3 October 2014, Siva Kumar a/l M.Jeyapalan entered into a settlement with the SC in the sum of RM782,839.17 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 Metacorp Berhad (Metacorp) between 14 February 2008 and 22 February 2008, 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 Siva Kumar was 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. The monies recovered will be applied in accordance with section 201(7) CMSA.On 3 October 2014, Dato’ Azmil Khalili Bin Dato’ Khalid entered into a settlement with the SC in the sum of RM249,750.00 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 Metacorp Berhad (Metacorp) between 20 February 2008 and 22 February 2008, 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 Dato’ Azmil Khalili was 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.The monies recovered will be applied in accordance with section 201(7) CMSA.
Regulatory settlement with Wong Thean Soon
On 26 September 2014, Wong Thean Soon (“TS Wong”), entered into a settlement with the Securities Commission Malaysia (“SC”) in the sum of RM7,000,000 when he agreed without admission or denial of liability, to settle a claim that the SC was proposing to institute against him and 13 others for the manipulation of MyEG Services Berhad shares between 16 January 2007 and 24 April 2007, contrary to section 84(1) of the Securities Industry Act 1983. The 13 other individuals involved in the alleged manipulation were:

  1. Chia Hang Kian
  2. Choo Weng Wah
  3. Tan Men Siong
  4. Ng Hong Sing
  5. Chung Siang Hien
  6. Ng Wee Kiat
  7. Tan Chiu Keong
  8. Tan Khei Chuan
  9. R. Mahalingam a/l A. Renganathan
  10. Hon Kok Seng
  11. Mah Hoong Meng
  12. Ng Wee Lun
  13. Jayakumar a/l Panneer Selvam

The settlement was reached following a letter of demand sent by the SC pursuant to its civil enforcement powers under the securities laws.

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 Tam Kin Kok
On 8 August 2014, the SC entered into a settlement with Tam Kin Kok in the sum of RM505,095.72 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 30 December 2008 and 2 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 Tam 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 Mohd Irtiza Azmel Bin Mohd Ismail and Mohd Ismail Bin Yahya
On 11 August 2014, the SC entered into a settlement with Mohd Irtiza Azmel bin Mohd Ismail and Mohd Ismail Bin Yahya in the sum of RM22,000 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 Boustead Properties Berhad (Boustead) on 14 May 2008, contrary to section 188(2) 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. The monies recovered will be applied in accordance with section 201(7) CMSA.
Regulatory Settlement with Vincent Ng Chee Yee
On 20 February 2014, Vincent Ng Chee Yee (Vincent Ng) entered into a settlement with the SC when he agreed without admission or denial of liability, to settle a civil claim that the SC was proposing to institute against him 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 of RM200,000 was reached following a letter of demand sent by the SC pursuant to its civil enforcement powers under the securities laws. The amount recovered from this settlement will be applied in accordance with section 200 of the CMSA.Earlier in December 2013, OCBC Bank (M) Berhad (OCBC) entered into a settlement with the SC for the sum of RM2,475,000 following a letter of demand sent by the SC pursuant to its civil enforcement powers under the securities laws. The sum of RM2,475,000 was equivalent to three times the pecuniary gain of RM825,000 which OCBC had made as a result of the breach.