Kuala Lumpur , 11 March 2008
Multiple share application accused pleads guilty and fined RM70,000
|Gan Yew Chok pleaded guilty yesterday to two charges under section 9(1) of the Securities Industry (Central Depository) Act 1991 for opening and using more than one securities account, to facilitate his application for Initial Public Offering (IPO) shares. This contravened Rule 26.02 of the Malaysian Central Depository Rules.
The Kuala Lumpur Sessions Court imposed a fine of RM35,000 for each charge, in default of 3 months imprisonment. In total, Gan was fined RM70,000, in default of 6 months imprisonment.
The Securities Commission’s (SC) investigation found that Gan had used the identity cards of several individuals living in rural Kelantan when he applied for the IPO shares of Ulbon Berhad and Metrod (M) Berhad in 1995 and 1996. He made a profit of RM57,000 from the sale of these shares, when 11 of the multiple share applications he put in were successfully balloted.
The SC had on 7 October 2002 offered a compound of RM57,000 for this offence. Gan was subsequently charged in the Kuala Lumpur Sessions Court on 30 April 2003 when he refused to pay the compound sum.