Kuala Lumpur, 20 May 2010
Oasis Asset Management Director Convicted of CBT of RM45 million
The Kuala Lumpur Sessions Court today convicted Muhammad Khalid Ismail of criminal breach of trust (CBT) under section 409 of the Penal Code for misappropriating RM45 million of Koperasi Angkatan Tentera Malaysia Berhad’s (KATMB) funds.
Muhammad Khalid, 62, who was the director of Oasis Asset Management Sdn Bhd (Oasis) at the time the offence was committed, was convicted for eight different charges.
Muhammad Khalid was found guilty of an offence under section 122D Securities Industries Act (SIA) for concealing records required to be maintained by Oasis in relation to the investment made by KATMB.
He had also been found guilty of submitting false statements to the Securities Commission Malaysia (SC) in relation to the funds managed by Oasis as well as for failing to maintain a trust account for the investment received from KATMB which are offences under section 122B and 47C (1) read together with section 122C of the SIA.
The Sessions Court sentenced Muhammad Khalid to jail term of 1 year for each offences, which are to run concurrently. He was also sentenced to a 2-year jail term for the CBT charge.
The SC has urged the court to impose a custodial sentence on the basis of public interest as it involved the misappropriation of RM45 million of the cooperative’s funds. The SC had also sought a deterrent sentence in view of the fact that Muhammad Khalid had breached his fiduciary duty as a director of a licenced fund manager in failing to maintain client’s trust account.
SECURITIES COMMISSION MALAYSIA