Kuala Lumpur, 21 October 2015
Audit Partner Jailed One Year, Fined RM400,000 for Misleading Disclosure of Financial Information
The Kuala Lumpur Sessions Court today convicted a licensed audit partner for abetting United U-Li Corporation Berhad (United U-Li), a public listed company, in making a misleading statement to Bursa Malaysia Securities Berhad, an offence under section 122B(b)(bb) read together with section 122C(c) of the Securities Industry Act 1983.
The misleading statement was in relation to United U-Li’s audited financial results for its financial year ended 31 December 2004. Yue Chi Kin, 47, was sentenced to one year jail term and was also ordered to pay a fine of RM400,000, in default six months of imprisonment. As a result of the misleading statement, United U-Li’s profit before tax for the financial year ended 31 December 2004 was inflated by approximately 26%.
This is the first case where the Securities Commission Malaysia (SC) had charged an auditor for abetting a public listed company in making a misleading statement to Bursa Malaysia Securities Berhad.
Yue was at the material time the audit partner of Messrs Roger Yue, Tan & Associates which audited United U-Li’s financial results for its financial year ended 31 December 2004. He was charged in April 2009 while the trial commenced in March 2011.
In sentencing Yue, Sessions Court Judge Dato’ Ahmad Zamzani bin Hj. Mohd Zain stated that public interest is a paramount consideration for offences of this nature. He further stated that such an offence should not be underestimated in order to maintain investors’ confidence and market integrity.
This case is the latest in a series of convictions obtained by the SC in cases involving the submission of false and misleading statements to Bursa Malaysia Securities Berhad and the SC.
SECURITIES COMMISSION MALAYSIA