Details of Civil Action Taken in 2017

No. Breach Defendants Brief facts of the case
1. Insider trading
  • Lim Kok Boon
  • Cheah Mean Har
On 28 September 2017, the SC filed a civil suit against Lim Kok Boon and Cheah Mean Har. The SC sought, among others:

  • A declaration that Lim had contravened s188(3)(a) CMSA when he communicated material non-public information to Cheah who had thereafter acquired a total of 350,000 GW Plastics Holdings Bhd shares on 25 September 2012 and 27 September 2012;
  • A declaration that Cheah had contravened s188(2)(a) CMSA when she acquired a total of 350,000 GW Plastics Holdings Bhd shares on 25 September 2012 and 27 September 2012 ;
  • A payment of the sum of RM142,500.00 by Lim and Cheah respectively, which is equivalent to three times the amount of RM47,500.00 being the difference between the price at which the shares had been acquired by Cheah and the price at which the shares would have been likely to have been acquired at the time of the acquisition, if the Inside Information had been generally available;
  • An order that Lim be barred from being a director of any public listed company for a period of 5 years;
  • A civil penalty of RM1,000,000 against Lim and Cheah;
  • Interest;
  • Costs.
2.
  • False trading and market rigging transaction
  • Stock market manipulation
  • Ng Wai Hong
  • Lo Ga Lung
  • Toh Pik Chai
  • Ling Pik Ngieh
  • Ng Soo Tian
  • Chan Kok
  • Chai Shou Wei
On 21 September 2017, the Securities Commission Malaysia (SC) filed a civil suit against the 7 defendants. The SC is seeking, among others:

  • A declaration that the defendants had engaged in false trading and market rigging transactions in respect of APLI shares from 7 November 2006 to 9 November 2006;
  • A declaration that the defendants had engaged in stock market manipulation in respect of APLI shares from 7 November 2006 to 9 November 2006;
  • An order that all the assets and properties of each of the defendants be traced and/or followed, and thereafter paid over to the Commission;
  • A declaration that all profits earned by each of the defendants by reason of their false trading and market rigging transactions and stock market manipulation of APLI shares are held on constructive trust for the benefit of the affected investors;
  • General and/or aggravated and/or exemplary damages against all the defendants;
  • Special damages;
  • Civil penalty of RM 1,000,000 against each of the defendants for the breach of section 84 and 85 of the SIA;
  • Interest;
  • An injunction to restrain each of the defendants, whether by themselves, their agents, servants or otherwise howsoever, from trading in any counter on Bursa Malaysia for a period of 5 years;
  • An order that each of the defendants be barred from being a director of any public listed company for a period of 5 years;
  • Costs.
3. Insider trading
  • Low Siew Moi
  • Tan Cheng Teik
  • Hoi Main Seng
  • Liaw Huat Hin
  • Chua Keng Hong
On 19 May 2017, the SC filed a civil suit against Low Siew Moi, Tan Cheng Teik, Hoi Main Seng, Liaw Huat Hin and Chua Keng Hong. The SC sought, among others:

  • A declaration that Low had contravened Section 89E (3) (a) of the Securities Industry Act 1983 (SIA);
  • A declaration that Tan had contravened Sections 89E (3) (a) and 89E (2) (a) of the SIA;
  • A declaration that Hoi, Liaw and Chua had contravened Section 89E (2) (a) of the SIA;
  • An order that Low pay the sum of RM 1,654,185.00  being an amount equal to three (3) times the amount being the difference between the price at which the shares in Worldwide were acquired by Tan, Hoi, Liaw and Chua and the price at which it would have been likely to have been acquired at the time of the acquisition, if the information on Worldwide had been generally available;
  • An order that Tan pay the sum of –
    • RM365,637.00 being an amount equal to three (3) times the amount being the difference between the price at which the shares in Worldwide were acquired by Hoi and Liaw and the price at which it would have been likely to have been acquired at the time of the acquisition, if the information on Worldwide had been generally available
    • RM 384,606.00 being an amount equal to three (3) times the amount being the difference between the price at which the shares in Worldwide were acquired by Tan and the price at which it would have been likely to have been acquired at the time of the acquisition, if the information on Worldwide had been generally available;
  • An order that Hoi pay the sum of RM 164,088.00 being an amount equal to three (3) times the amount being the difference between the price at which the shares in Worldwide were acquired by Hoi and the price at which it would have been likely to have been acquired at the time of the acquisition, if the information on Worldwide had been generally available;
  • An order that Liaw pay the sum of RM 201,549.00 being an amount equal to three (3) times the amount being the difference between the price at which the shares in Worldwide were acquired by Liaw and the price at which it would have been likely to have been acquired at the time of the acquisition, if the information on Worldwide had been generally available;
  • An order that Chua pay the sum of RM 903,942.00 being an amount equal to three (3) times the amount being the difference between the price at which the shares in Worldwide were acquired by Chua and the price at which it would have been likely to have been acquired at the time of the acquisition, if the information on Worldwide had been generally available;
  • Civil penalty of RM 1,000,000 against the Low, Tan, Hoi, Liaw and Chua respectively;
  • Interest; and
  • Costs.

Pursuant to the filing of the civil suit, the following individuals have agreed to settle the claim that the SC has instituted against them

  • Liaw Huat Hin
  • Chua Keng Hong
  • Hoi Main Seng
  • Tan Cheng Teik
4. Insider trading
  • Yeow Kheng Chew
  • Paulene Chee Yuet Fang
  • Tan Yee Chee
On 26 July 2017, the SC filed a civil suit against Yeow Kheng Chew (Yeow), Paulene Chee Yuet Fang (Paulene Chee) and Tan Yee Chee (Tan). The SC sought, among others:

  • A declaration that Yeow had contravened s188(2)(a) CMSA when he acquired 5,159,000 Kencana Petroleum Berhad (Kencana) shares between 2 June 2011 and 8 July 2011 through the trading accounts of Paulene Chee, Asia Premium Corp, Angnew Resources Limited;
    A declaration that Paulene Chee had contravened s188(2)(a) CMSA in respect of the acquisition of 5,159,000 Kencana shares between 2 June 2011 and 8 July 2011 through her trading account as well as the trading accounts of Asia Premium Corp and Angnew Resources Limited;
  • A declaration that Tan had contravened s188(2)(a) CMSA in respect of the acquisition of 1,159,000 Kencana shares on 8 July 2011 through Paulene Chee’s trading account;
  • An order that Yeow and Paulene Chee severally pay the sum of RM2,326,980 being three times the difference between the price at which the Kencana shares had been acquired and the price at which the Kencana shares would have been likely to have been acquired at the time of the acquisition, if the inside information relating to the proposed merger of Kencana and SapuraCrest Petroleum Berhad (SapuraCrest) had been generally available;
  • An order that Tan pay the sum of RM452,280 which is equivalent to three times the amount of RM150,760 being the difference between the price at which the Kencana shares had been acquired and the price at which the Kencana shares would have been likely to have been acquired at the time of the acquisition, if the inside information relating to the proposed merger of Kencana and SapuraCrest had been generally available;
  • An order for civil penalty of RM1,000,000 against Yeow, Paulene Chee and Tan severally;
  • An order that Yeow, Paulene Chee and Tan be barred from being a director of any public listed company for a period of 10 years;
    An order that Yeow, Paulene Chee and Tan will refrain from any involvement in the management of any public listed company for a period of 10 years;
  • Interest;
  • Costs.

On 15 August 2017, the High Court recorded a Consent Judgment between the SC and the three Defendants granting the orders which were sought by the SC.

5.
  • Use of manipulative and deceptive devices
  • Causing wrongful loss to a listed corporation
Datin Chan Chui Mei On 26 September 2016, the SC filed a civil suit against Datin Chan Chui Mei. The SC is seeking, among others:

  • A declaration that Datin Chan had contravened section 179 and 317A of the CMSA;
  • An order that Datin Chan makes restitution to persons aggrieved by the contravention;
  • An order that Datin Chan pays the SC the sum of RM11.54 million, to be held in trust for Stone Master Corporation Berhad;
  • An order that Datin Chan be barred from being a director of a public-listed company for a period of five years;
  • Civil penalty of RM1 million for the contravention;
  • Interest;
  • Costs.

On 27 March 2017, the SC obtained an order for interim injunction from the Kuala Lumpur High Court to restrain Datin Chan from dealing with the monies in her bank accounts up to the amount of RM 11.54 million until the disposal of the suit. The Kuala Lumpur High Court has also granted a stay of proceedings pending the disposal of Datin Chan’s appeal to the Court of Appeal against the decision of the High Court in dismissing her application to strike out the SC’s suit against her. The case management in Court of Appeal is set on 1 June 2017.

6. Insider trading
  • Koh Tee Jin
  • Koh Thiam Seong
  • Koh Hui Sim
On 13 March 2017, the SC filed a civil suit against Koh Tee Jin, Koh Thiam Seong and Koh Hui Sim. The SC is seeking, among others:

  • A declaration that Koh Tee Jin had communicated the material non-public information to Koh Thiam Seong and Koh Hui Sim who both had thereafter disposed Axis Incorporation Berhad (Axis) shares between 9 July 2008 and 30 July 2008;
  • A declaration that Koh Thiam Seong and Koh Hui Sim had engaged in insider trading in respect of Axis shares between 9 July 2008 and 30 July 2008;
  • An order that Koh Tee Jin, Koh Thiam Seong and Koh Hui Sim be barred from being a director of any public listed company for a period of five years;
  • A payment of the sum of RM3,546,477.00 from Koh Tee Jin which is equivalent to three times the amount of RM1,182,159 being the difference between the price at which the shares had been disposed by Koh Thiam Seong and Koh Hui Sim and the price at which the shares would have been likely to have been disposed at the time of the disposal, if the material non-public information had been generally available;
  • A payment of the sum of RM739,389 and RM2,807,088 from Koh Thiam Seong and Koh Hui Sim respectively which is equivalent to three times the difference between the price at which the shares had been disposed by Koh Thiam Seong and Koh Hui Sim and the price at which the shares would have been likely to have been disposed at the time of the disposal, if the material non-public information had been generally available;
  • Civil penalty of RM1,000,000 for the breach of section 188(3) of the CMSA by Koh Tee Jin;
  • Civil penalty of RM1,000,000 for the breach of section 188(2) of the CMSA by Koh Thiam Seong and Koh Hui Sim;
  • General and/ or aggravated and/ or exemplary damages;
  • Interest;
  • Costs.
Outcome Of Civil Action Taken
No. Offence Defendants Brief facts of the case Outcome
1. Insider Trading
  • Koh Tee Jin
  • Koh Thiam Seong
  • Koh Hui Sim
On 13 March 2017, the SC filed a civil suit against Koh Tee Jin, Koh Thiam Seong and Koh Hui Sim. The SC is seeking, among others:

  • A declaration that Koh Tee Jin had communicated the material non-public information to Koh Thiam Seong and Koh Hui Sim who both had thereafter disposed Axis Incorporation Berhad (Axis) shares between 9 July 2008 and 30 July 2008;
  • A declaration that Koh Thiam Seong and Koh Hui Sim engaged in insider trading in respect of Axis shares between 9 July 2008 and 30 July 2008;
  • A payment of the sum of RM3,546,477.00 from Koh Tee Jin which is equivalent to three times the amount of RM1,182,159 being the difference between the price at which the shares had been disposed by Koh Thiam Seong and Koh Hui Sim and the price at which the shares would have been likely to have been disposed at the time of the disposal, if the material non-public information had been generally available;
  • A payment of the sum of RM739,389 and RM2,807,088 from Koh Thiam Seong and Koh Hui Sim respectively which is equivalent to three times the difference between the price at which the shares had been disposed by Koh Thiam Seong and Koh Hui Sim and the price at which the shares would have been likely to have been disposed at the time of the disposal, if the material non-public information had been generally available;
  • Civil penalty of RM1,000,000 for the breach of section 188(3) of the CMSA by Koh Tee Jin;
  • Civil penalty of RM1,000,000 for the breach of section 188(2) of the CMSA by Koh Thiam Seong and Koh Hui Sim;
  • General and/or aggravated and/ or exemplary damages;
  • Interest;
  • Costs.
On 6 October 2017, the SC obtained an order from the Kuala Lumpur High Court, a judgment against the three defendants for insider trading in Axis’ shares. Following the judgment in default of appearance, Koh Tee Jin was ordered by the court to pay the SC a total of three time the loss avoided by Koh Thiam Seong and Koh Hui Sim amounting to RM3,546,477. Koh Thiam Seong and Koh Hui Sim were ordered to pay the SC RM739,389 and RM2,807,088 respectively, which was three times the loss each of them had avoided from the difference in price of Axis shares disposed against the likely price had the material non-public information had been generally available.

All three defendants were also ordered to pay SC a civil penalty of RM1 million each, with costs and interest. They are also barred from being a director of any public listed company for a period of five years.

2. Insider Trading Lim Chiew On 8 December 2005, the SC filed a civil suit against Lim Chiew, a former independent non-executive director of Magnum Corporation Berhad for insider trading in the shares of Bolton Berhad on 12 July 1999.
The SC sought, among others:

  • A payment of the sum of RM1,242,061.08 which is equivalent to three times the amount of RM414,020.36, being the profits he earned as a result of the breach;
  • Civil penalty of RM500,000.00;
  • Interest;
  • Costs.
On 28 September 2017, the Kuala Lumpur High Court declared that the SC had successfully proven its claim against Lim Chiew. The High Court ordered Lim Chiew to pay the sum of RM1,242,061.08 claimed by the SC and a civil penalty of RM50,000.

The Defendant had on 10 October 2017 filed an appeal against the decision of the High Court.

3.
  • Unlicensed investment advice
  • Market rigging
  • Market manipulation
  • Use of fraudulent scheme in connection with the purchase or sale of securities
  • Aeneas Capital Management L.P
  • Thomas R. Grossman
  • Richard Cohen
  • John Suglia
  • Priam Holdings Ltd
  • Aeneas Evolution Portfolio Ltd
  • Aeneas Portfolio Company L.P
  • Acadian Worldwide Inc
  • Tan Mong Sing
  • Low Thiam Hock
On 9 April 2008, SC filed a civil suit against 8 foreign defendants and 2 Malaysian individuals. The SC sought for the following orders:

  • A declaration that all the defendants conspired to manipulate the market for Iris Corporation Berhad shares and/or the price of Iris shares and defrauded investors;
  • A declaration that all profits earned by the defendants are held on constructive trust for the benefit of affected investors;
  • Orders that all assets and properties of each of the defendants be traced and followed and then paid to the SC for the purpose of compensating affected investors;
  • Permanent injunction to restrain each of the defendants from trading in Iris shares;
  • Permanent injunction to restrain each of the defendants from trading in any counter on Bursa Malaysia;
  • General and exemplary damages;
  • Interest; and
  • Costs.
On 16 June 2017 after a full trial, the High Court held in favour of the SC in its claim against the 3rd defendant Richard Cohen, a former research analyst at Aeneas Capital Management L.P.
The High Court however dismissed SC’s claim against the 9th defendant Tan Mong Sing. Tan Mong Sing’s counter-claim against the SC was also dismissed.
Further, the High Court had, on 29 August 2017, held in favour of the SC against the 1st, 2nd, 4th, 5th, 7th and 8th defendants for their role in the same manipulation.
The SC had earlier withdrawn its claim against the 6th and the 10th Defendants.