Kuala Lumpur, 28 February 2018
Bogus Remisier Jailed One Year and Fined RM2 million For Securities Fraud
The Kuala Lumpur Sessions Court today convicted a 67-year-old individual of two counts of defrauding Koperasi Pelaburan Pekerja-Pekerja Proton Berhad (KOPRO) between August 2007 and November 2008.
Ismail Basir pleaded guilty and was sentenced by Sessions Court Judge Azman Ahmad to one year imprisonment and RM1 million fine, in default six months imprisonment, for each charge. The jail term is to run concurrently.
Ismail was charged by the Securities Commission Malaysia on 16 January 2018 with two charges for securities fraud under section 87A(b) of the Securities Industry Act 1983 and section 179(b) of the Capital Markets and Services Act 2007.
The facts of the case show that Ismail had defrauded KOPRO by representing himself as a remisier at PM Securities Sdn Bhd (PM Securities), when in fact Ismail was never licensed by the SC as a Dealer’s Representative. He further misled KOPRO that he had opened a share trading account under KOPRO’s name at PM Securities and to which a total of RM350,000 was collected by him from KOPRO to purportedly purchase Proton Holdings Berhad (Proton) shares.
In committing the fraud, Ismail had given KOPRO fictitious statement of accounts and contract notes to give a false impression to KOPRO that the monies were used for the purchase of Proton shares, when in fact there were no such transactions. Ismail admitted that such monies were instead deposited into a share trading account controlled by him and in which he had conducted share trades and made withdrawals for his own benefit.
SECURITIES COMMISSION MALAYSIA