Kuala Lumpur, 5 March 2013
Court of Appeal affirms conviction and sentence of former MIH manager for fraud relating to IPO ballot

The Court of Appeal today struck out the appeal by Ashari Rahmat against his conviction and sentence for swapping successful balloted envelopes for the initial public offering (IPO) of UPA Corporation Bhd(UPA) shares, with those that did not go through the process at the Malaysian Issuing House (MIH) between 15 to 16 February 1997.

Ashari was an operations manager with the MIH, an issuing house in charge of handling the balloting of IPOs during the material time. He was paid RM10,000 for swapping 80 successfully balloted applications with those that were not put through the balloting process.

Ashari was convicted and sentenced to three years jail and a fine of RM1 million (in default of one year jail) by the Sessions Court in 2009. The High Court had dismissed Ashari’s appeal on 4 January 2012 and affirmed the said conviction and sentence. He had since filed an appeal to the Court of Appeal.

A three-panel Bench presided by Justice Haji Abdul Malik Haji Ishak, Justice Datuk Linton Albert and Justice Dato Haji Zawawi Salleh today confirmed Ashari’s conviction and sentence under section 87A(b) of the Securities Industry Act 1983. Ashari is currently serving his imprisonment sentence.