No. Nature of Offence Offender(s) Facts of Case Date Charged
Criminal Prosecution Initiated � Persons charged
1. Short selling Kasim bin Mahat Kasim, a remisier short sold 60 lots of Transocean Holdings Berhad shares. Kasim was charged on 31 January 2000.
2. Safaruddin bin Johar Safaruddin short sold 20 lots of Transocean Holdings Berhad�s shares. Safaruddin was charged on 24 July 2000.
3. Causing to be submitted to SC information from which there is a material omission in connection with a corporate proposal Malaysian International Merchant Bankers (MIMB) MIMB was charged for submitting to the SC a letter dated 27 December 1997 in relation to information on the revised profit and cash flow forecast of AKI from which there was a material omission, namely, the fact that the bond issue proceeds amounting to RM30,000,000 had been fully utilised. MIMB was charged on 5 January 2000.

On 26 July 2000, Prosecution withdrew the charge against MIMB as the SC has compounded the offence on 28 June 2000.

4. Director who submitted misleading information to KLSE Chong Cheng Ah (Joseph) Chong, Vincent and Chok had caused the submission of misleading information that is contained in the unaudited results of Westmont Industries Berhad Group for year ended 31 December 1996 to KLSE. Chong was charged on 28 February 2000.

Vincent and Chok were charged on 2 March 2000.

Vincent Leong Jee Wei
Chok Kon Phin (James)
5. Submission of false information to SC in connection with a corporate proposal Franky Chua Goon Eng Franky Chua, director of Franky Capital Berhad (FCB), had caused the submission of false information relating to the shareholding structure of FCB in FCB�s listing proposal to SC. Franky was charged on 7 March 2000.

On 26 July 2000, Prosecution withdrew the charge against Franky Chua as the SC has compounded the offence on 20 June 2000.

6. Fraud involving IPO share applications Ashari bin Rahmat Ashari, Safifuri and Fauzi were engaged in an act which operated as a fraud upon UPA Corporation Berhad (UPA) by switching successfully balloted envelopes of UPA Corporation Berhad initial public offering share applications with envelopes that were not put through the balloting process. Ashari, Safifuri and Fauzi were charged on 20 March 2000.
Safifuri Idham
Fauzi Ismail
7. Ashari bin Rahmat Ashari, Safifuri, Lee and Tan were engaged in an act which operated as a fraud upon UPA by switching successfully balloted envelopes of UPA Corporation Berhad initial public offering share applications with envelopes that were not put through the balloting process. Ashari, Safiruri, Lee and Tan were charged on 20 March 2000.
Safifuri Idham
Lee Han Kong
Tan Tiam Lay
8. Falsification of records Woon Shiang Tsao Woon caused to be entered into the books in relation to the business of LPC Futures (M) Sdn Bhd (LPC) matters that are false in material particular. Woon and Yeoh were charged on 7 July 2000.
Yeoh Oon Chye Yeoh abetted Woon Shiang Tsao for causing to be entered into the books in relation to the business of LPC matters that are false in material particular.
9. Submission of false statement to the SC in connection with proposal submitted Tan Siew Hui Tan, the Group Financial Controller of TCL Premier Holdings Berhad (TCL), had caused a letter dated 6 January 1997 that contained false information to be submitted to SC. Tan was charged on 20 July 2000.
OUTCOME OF CRIMINAL PROSECUTION � PERSONS FINED
No. Nature of Offence Offender(s) Facts of Case Sentence
1. Short selling Kasim bin Mahat Kasim, a remisier, was charged on 31 January 2000 for short selling 60 lots of Transocean Holdings Berhad shares. Kasim pleaded guilty and was convicted on 27 June 2000 of the offence.

He was fined RM40,000 (in default 18 months imprisonment).

2. Zairin bin Ismail Zairin, a dealer�s representative of Mayban Securities Sdn Bhd, was charged on 2 August 1999 for short selling 20 lots of Transocean Holdings Berhad shares. Zairin pleaded guilty and was convicted on 1 August 2000 of the offence.

He was fined RM25,000 (in default 3 months imprisonment).

3. Mohd Roslan bin Hamzah Roslan, a dealer�s representative of Mayban Securities Sdn Bhd, was charged on 1 November 1999 for short selling 25 lots of Transocean Holdings Berhad shares. Roslan pleaded guilty and was convicted on 13 April 2000 of the offence.

He was fined RM30,000 (in default 3 months imprisonment).

4. Abu Zaharoff bin Abu Bakar Abu Zaharoff, the Executive Director of Halim Securities Sdn Bhd, was charged on 1 December 1999 for short selling 14 lots of Suremax Group Berhad shares. Abu Zaharoff pleaded guilty and was convicted on 20 October 2000 of the offence.

He was fined RM25,000 (in default 3 months imprisonment).

5. Syed Ali Syed Hamzah Syed Ali, a remisier with Alor Setar Securities Sdn Bhd, was charged on 1 December 1999 for short selling 600 and 283 lots of Isuta Holdings Berhad and Granite Industries Berhad shares, respectively. Syed Ali pleaded guilty and was convicted on 7 June 2000 of the offence.

He was fined RM100,000 (in default 24 months imprisonment).

6. Director who submitted misleading information to KLSE Chong Cheng Ah (Joseph) Chong, Vincent and Chok had caused the submission of misleading information that is contained in the unaudited results of Westmont Industries Berhad Group for year ended 31 December 1996 to KLSE. Chong pleaded guilty and was convicted on 25 April 2000 of the offence.

Chong was fined RM400,000 (in default 12 months imprisonment).

The charge preferred against Vincent and Chok on 2 March 2000 were withdrawn upon the plea of guilt by Chong.

Vincent Leong Jee Wei
Chok Kon Phin (James)
7. Utilisation of company proceeds for purposes other than as approved by the SC

Causing the submission of misleading information to the SC in connection with a corporate proposal

Ong Weng Seng @ Ong Say Lam Ong, director of Associated Koalin Industries Berhad (AKI), abetted AKI in misutilising RM30 million of the proceeds raised in AKI�s bond issue. The said amount was utilised in accordance with SC�s approval condition.
He also caused the submission of the misleading information to the SC in connection with the utilisation of the said bond issues proceeds.
Ong pleaded guilty and was convicted on 22 August 2000 for the offence of submitting misleading information to SC.

In passing sentence the court took into consideration 2 outstanding offences of submitting misleading information to SC and for breach of SC�s approval that were admitted by him.

He was fined RM350,000 (in default 8 months imprisonment).

OUTCOME OF CRIMINAL PROSECUTION � PERSONS JAILED
No. Nature of Offence Offender(s) Facts of Case Sentence
1. Short selling Lua Yik Hor Lua, a dealer�s representative of Seagrott & Campbell Sdn Bhd, was charged on 22 May 1996 for short selling 960 lots of The North Borneo Timbers Berhad shares. Lua was convicted on 10 November 2000 for all 30 offences of short selling.

He was sentenced to 2 years imprisonment for each offence, on a concurrent basis.

He appealed against the conviction and the sentence. The sentence is stayed pending appealed.