Kuala Lumpur, 22 September 2011
Two former directors sentenced to jail and fined for CBT
The Kuala Lumpur Sessions Court today found two former directors of Multicode Electronics Industries (M) Berhad, guilty of committing criminal breach of trust under section 409 of the Penal Code involving over RM26 million of funds belonging to the company.
Gordon Toh Chun Toh was sentenced to 12 years imprisonment while Dato’ Abul Hassan bin Mohamed Rashid received a jail sentence of six years. Gordon Toh, a Singaporean, was also ordered to pay a fine of RM1 million, in default two years imprisonment.
In passing the sentence, Judge Dato’ Jagjit Singh said “A pre-meditated white collar scandal executed with precision within T+3 is how I would sum up the whole case”. He emphasized that the sentence must send a strong message to offenders and would-be offenders that crime does not pay. He also pointed out that the victim, Multicode, is a public listed company which lost millions as a result, causing its public shareholders to suffer as well. He said that for the business and commercial sector to flourish, the corporate environment must be free of white collar crimes.
Gordon and Dato’ Abul Hassan were charged in the Sessions Court in Kuala Lumpur in March 2009 with having engaged in an act which operated as a fraud on Multicode by causing the uplifting of fixed deposits belonging to Multicode under section 87A of the Securities Industry Act 1983. An alternative charge of CBT was preferred at the same time under section 409 of the Penal Code. The Prosecution called a total of 31 witnesses over the period of the trial.
SECURITIES COMMISSION MALAYSIA