Kuala Lumpur, 1 June 2015
SC Files Suit Against Three Individuals for Insider Trading

The Securities Commission Malaysia (SC) filed suit against three individuals namely Chan Soon Huat, Goh Ching Liong and Leong Ah Chai, at the Kuala Lumpur High Court recently, for insider trading in the shares of WCT Berhad (WCT).

The SC filed the action against Goh and Leong on 26 May 2015 while the action against Chan was filed on 27 May 2015.

In the filings, the SC alleged that Chan had, in breach of section 188(2) of the Capital Markets and Services Act 2007 (CMSA), disposed a total of 2,414,600 shares and 1,236,700 warrants in WCT between 30 December 2008 and 5 January 2009 whilst in possession of material non-public information.

The SC alleged that the material non-public information referred to in the action related to the cancellation of a contract for the proposed construction of the “Nad Al Sheba Dubai Racecourse” in the Emirate of Dubai, United Arab Emirates which was awarded to a joint-venture company set up by WCT and one Arabtec Construction L.L.C.. The announcement relating to the material information was made on 6 January 2009.

Chan is said to have disposed the WCT shares and warrants through his own account and also the account of his daughter, Chan Choon Chew and his son-in-law, Leong Weng Wah.

The SC also alleges that Leong had, in breach of section 188(2) of the CMSA, disposed 1,640,000 units of WCT shares between 2 January 2009 and 5 January 2009 whilst in possession of material non-public information. Goh, who at the material time was and still is currently the Deputy Managing Director of WCT is alleged to have communicated the material non-public information, in breach of section 188(3) of the CMSA, to Leong who had thereafter disposed of the said WCT shares.

The SC is seeking a disgorgement of three times the profits earned by the defendants as a result of the insider trading. The SC is also claiming a civil penalty of RM1 million from each of the three defendants and that the defendants be barred from being a director of a public listed company.