Kuala Lumpur, 24 June 2010
Former LFE Corp director faces 9 charges involving fraud
Securities Commission Malaysia (SC) today charged Alan Rajendram a/l Jeya Rajendram, a former director of LFE Corporation Berhad (LFE), with securities fraud and 8 other offences he allegedly committed when he was the director of the company.
The charges against the 53-year-old Alan are the latest in a string of enforcement action by the SC against alleged corporate fraud and misconduct.
Alan, 53, was charged under section 87A(b) Securities Industry Act 1983 for committing an act that operated as a fraud on LFE by using RM9 million of LFE’s monies to finance the purchases of LFE shares pursuant to a private placement and restricted offer of LFE shares to him. The alleged act is said to have been committed between 4 January 2007 and 8 February 2007. If convicted, he is liable to a fine of not less than RM1 million and imprisonment for a term not exceeding 10 years.
Alan also faces two other charges under section 122B(b)(bb) of the Securities Industry Act and another two charges under section 369(b)(B) of the Capital Markets and Services Act 2007 for knowingly permitting the furnishing of false statements by LFE to Bursa Malaysia Securities Berhad in relation to LFE’s unaudited financial results for all four quarters for its financial year ended 31 December 2007.
Apart from the securities law breaches, Alan was also charged for criminal breach of trust under the section 409 of the Penal Code of a further RM9.99 million of LFE’s monies and further three charges for abetting two other Directors of LFE in cheating EON Bank Berhad of RM3.96 million by supplying fictitious documents to enable the drawdown on LFE’s banking facilities. Alan pleaded not guilty to all nine charges.
SECURITIES COMMISSION MALAYSIA