Kuala Lumpur, 10 October 2012
One year jail, RM1.2 million fine for ex-director for giving false statement
In a prosecution brought by the Securities Commission Malaysia, the Kuala Lumpur Sessions Court today sentenced a former director of LFE Corporation Bhd (LFE) to one year imprisonment and a total fine of RM1.2 million for knowingly permitting the furnishing of false statements by LFE to Bursa Malaysia Securities Bhd, in relation to LFE’s unaudited financial results for all four quarters for its financial year ended 31 December 2007.
Alan Rajendram a/l Jeya Rajendram, 56, faced two charges under section 122B of the Securities Industry Act 1983 and another two charges under section 369 of the Capital Market and Services Act 2007. Each of the charge carries a maximum fine of RM3 million and a jail term of up to 10 years.
He was found guilty on all four charges. Sessions Court Judge Puan SM Komathy Suppiah sentenced him to one year imprisonment and a fine of RM300,000 for each offence. The jail term is to run concurrently.
Alan Rajendram was a non-executive director with LFE at the time the offence. He was charged in June 2010 while trial commenced in March 2011 with the Securities Commission Prosecution team calling 35 witnesses. The accused had provided sworn evidence and called three other witnesses in his defence.
In passing the sentence, Judge Komathy said that the accused did not offer any credible explanation and his defence merely served to confirm and strengthen the case for the prosecution.
SECURITIES COMMISSION MALAYSIA