Kuala Lumpur, 13 March 2009

Former Multi-Code directors charged with CBT and securities fraud

The Securities Commission (SC) and the Attorney General’s Chambers today charged Toh Chun Toh Gordon and Datuk Abul Hasan Bin Mohamed Rashid for defrauding Multi-Code Electronics Industries (M) Berhad (Multi-Code) and criminal breach of trust.

Toh, the Singaporean former Managing Director of Multi-Code, was charged with using RM17.5 million from the company’s funds from 26 to 28 March 2007 to finance the purchase of over 11 million Multi-Code shares by Ace Prelude Sdn Bhd (Ace Prelude). Abul Hasan, the former Executive Director of Multi-Code, was charged with abetting Toh in carrying out the offences.

Toh was charged under Section 87A(b) of the Securities Industries Act 1983 (SIA), and is liable to a fine of not less than RM1 million and imprisonment for a term not exceeding 10 years upon conviction.

Alternative charges under section 409 of the Penal Code for criminal breach of trust involving RM26 million were also preferred against Toh and Abul Hasan. They could be fined and whipped if found guilty, in addition to facing imprisonment for a term between 2 and 20 years.

Toh and Abul Hasan were granted bail of RM 400,000 and RM200,000 respectively, with 2 Malaysian sureties each. Abul Hasan was further required to surrender his passport to the court.

The Prosecution’s application for the joint trial of Toh and Abul Hasan has been fixed for hearing on 9 April 2009.