Criminal Prosecution Initiated – Persons charged
No. Nature of Offence Offender(s) Facts of Case Date Charged
1. Submission of false statement in connection to

(i) an application for licence, and
(ii) an application for renewal of the above licence.
Tam Kut Hing Tam, the Managing Director of P.I. Capital Asset Management Sdn Bhd (P.I. Capital), submitted a false statement in connection with P.I. Capital�s application for a Fund Manager�s licence. Tam was charged on 15 April 1998.
2. Short selling Mohd Hanapiah bin Abdul Rahman Mohd Hanapiah short sold 90 lots of Suremax Group Berhad shares. Phang was charged on 10 July 1998.
3. Phang Ah Heng @ Phang Ah Hing Phang short sold 12 lots of Transocean Holdings Berhad shares. Phang was charged on 10 July 1998.
4. Defrauding Issuing House Fauzi Ismail Fauzi engaged in an act that operated as a fraud upon Malaysian Issuing House Sdn Bhd between 5 February and 5 March 1997. Fauzi was charged on 10 November 1998.

On 1 November 1999, Prosecution withdrew the charge against the Accused.

Outcome of Criminal Prosecution – Persons fined
No. Nature of Offence Offender(s) Facts of Case Sentence
1. Short selling Mohd Hanapiah bin Abdul Rahman Mohd Hanapiah was charged on 1 July 1998 for short selling 90 lots of Suremax Group Berhad shares. Mohd Hanapiah pleaded guilty and was convicted on 23 November 1998 of the offence.
He was fined RM200,000 (in default 12 months imprisonment).
2. Phang Ah Heng @ Phang Ah Hing Phang was charged on 10 July 1998 for short selling 12 lots of Transocean Holdings Berhad shares. Phang pleaded guilty and was convicted on 7 December 1998 for the offence of short selling.
He was fined RM90,000.