Criminal Prosecution Initiated � Persons charged
No. Nature of Offence Offender(s) Facts of Case Date Charged
1. Utilisation of rights issue proceeds for purposes other than as approved by the SC
Causing the submission of false information to the SC in connection with a corporate proposal
Lee Aik Chong Lee, the Director of Seal Incorporated Berhad, utilised the company�s rights issues proceeds amounting to RM19,420,000 for the purpose other than as approved by SC.

He also caused the furnishing of false information to KLSE in relation to the utilisation of the said proceeds.

Lee was charged on 5 January 2001.
2. Short selling Mohd Tahir bin A. Rahman Mohd Tahir, abetted Ahyauddin Muhamad to short sell 80 lots of Transocean Holdings Bhd. Shares. Mohd Tahir was charged on 17 January 2001
3. Chan Wan Kee Chan, a dealer�s representative with OSK Securities Berhad, short sold a total of 75 lots of various shares. Chan was charged on 19 November 2001.
4. Failure to inform the SC that information submitted earlier in connection with a corporate proposal may be misleading Tan Hock Keng Tan, the Executive Chairman of Pilecon Engineering Berhad (Pilecon), failed to inform the SC upon becoming aware that information previously submitted to SC may be misleading.

The information relates to the directors� recommendation to Pilecon�s shareholder to vote in favour of the extension of the expiration date of Pilecon�s warrants that was contained in Pilecon�s draft circular to shareholders.

Tan was charged on 8 February 2001.

On 16 June 2003, Prosecution withdrew the charge against Tan as the SC has compounded the offence on 6 May 2003.

5. Utilisation of public issue proceeds for purposes other than as approved by the SC
Causing the submission of false statement to SC in connection with a corporate proposal
Chua Peng Len Chua and Gwi, both directors of Plantation & Development Berhad (P&D), and Yong, the Chief Executive Officer of P&D, abetted P&D in utilising its public issue proceeds amounting to RM26,493,335.57 for purposes other than as approved by SC.

Chua, also caused the submission of a false statement to SC in relation to the utilisation of the public issue proceeds.

Gwi and Yong were charged on 22 February 2001.

Chua, Gwi and Yong were charged on 22 February 2001.

Gwi Chin Fatt
Yong Tiam Yoon
6. Submission of false information to the SC in connection with a corporate proposal Tan Sri Datuk Dr. Mohan a/l M.K Swami Tan Sri Datuk Dr. Mohan, Executive Chairman of Chase Perdana Berhad (CPB), caused to be submitted false information in CPB�s corporate proposal to the SC. The false information was that he did not hold any shares in CPB when in fact he did. Tan Sri Datuk Dr. Mohan was charged on 16 March 2001.
On 10 February 2003,

Prosecution withdrew the charge against Tan Sri Datuk Dr. Mohan as the SC has compounded him for the offence on 30 January 2003.

Gomathi @ Usha Nathan a/p A Vaidyanathan Gomathi @ Usha, General Manager of Chase Perdana Berhad (CPB), abetted Tan Sri Datuk Dr. Mohan in engaging in an act which operated as a fraud on the shareholders of CPB. Gomathi @ Usha was charged on 21 March 2001.

On 10 February 2003, Prosecution withdrew the charge against the accused.

7. Operating an illegal futures market Soo Chee Mun Soo and Chan, directors of HNY Worldwide Trade (M) Sdn Bhd (HNY), operated an illegal futures market through HNY. Soo and Chan were charged on 31 March 2001.
Chan Swee Foo
8. Causing the submission of false information to SC in connection with a corporate proposal

Failure to inform SC that information submitted earlier in connection with a corporate proposal may be misleading

Gan Kok Beng Gan, a director of Ganad Corporation Berhad (Ganad), was charged for submitting false information to the SC, which was provided in Ganad�s audited accounts for two financial year ends, in connection with Ganad�s listing proposal. The turnover, trade debtors and profit before tax figures reflected in the audited accounts were inflated. Gan Kok Beng was charged on 15 May 2001.
How Yok Bee How, a director of Ganad failed to inform the SC that information contained in Ganad�s financial statement for the year ended 31 May 1997 which was submitted to SC may be misleading. How Yok Bee was charged on 15 May 2001.
9. Submission of false statement in connection with an application for licence Tan Seng Chye Tan disclosed false information in his application for the renewal of his dealer�s representative licence. Tan Seng Chye was charged on 13 September 2001.
Outcome of Criminal Prosecution � Persons fined
No. Nature of Offence Offender(s) Facts of Case Sentence
1. Falsification of records Woon Shiang Tsao Woon Shiang Tsao was charged on 7 July 2000 for causing 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 pleaded guilty and was convicted on 16 January 2001 of the offence.

He was fined RM100,000 (in default 18 months imprisonment).

Yeoh Oon Chye Yeoh was charged on 7 July 2000 for abetting 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. Yeoh pleaded guilty and was convicted on 15 January 2001 of the offence.

He was fined RM80,000 (in default 18 months imprisonment).

2. Short selling Safaruddin Johar Safaruddin was charged on 24 July 2000 for short selling 20 lots of Transocean Holdings Berhad�s shares Safaruddin pleaded guilty and was convicted on 11 April 2001 of the offence.

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

3. Utilisation of rights issue proceeds for purposes other than as approved by the SC
Causing the submission of false information to the SC in connection with a corporate proposal
Lee Aik Chong Lee, the Director of Seal Incorporated Berhad, was charged on 5 January 2001 for utilising the company�s rights issues proceeds amounting to RM19,420,000 for purposes other than as approved by SC.

He also charged for causing the furnishing of false information to SC in relation to the utilisation of the said proceeds.

Lee pleaded guilty and was convicted on 18 April 2001 for the offence of submitting false information to the SC.

In passing sentence the court took into consideration the outstanding offence of misutilising the company�s rights issues proceeds that was admitted by him.

He was fined RM400,000 (in default 2 years imprisonment). Fine paid.

4. Insider trading Chua Seng Huat Chua, Managing Director of Kim Hin Industry Berhad (KHIB), was charged on 20 November 1996 for making improper use of information in relation to the financial performance of KHIB when dealing in the securities of KHIB. Chua pleaded guilty and was convicted on 20 June 2001 of the offence.

He was fined RM1.2 million (in default 12 months imprisonment).

5. Causing the submission of false statement to SC in connection with a corporate proposal Ishak bin Ismail Ishak, a director of Idris Hydraulic (M) Berhad (IHMB), was charged on 24 July 1999 for falsely disclosing in IHMB�s proposal to the SC that he did not hold any shares in KFC Holdings (M) Bhd (KFC).

The information submitted was in connection with a proposal for the acquisition of an asset of KFC by IHMB.

Ishak pleaded guilty and was convicted on 23 August 2001 for the offence of submitting false statement to the SC.

He was fined RM400,000 (in default 6 months imprisonment).

6. Utilisation of public issue proceeds for purposes other than as approved by the SC
Causing the submission of false statement to SC in connection with a corporate proposal
Chua Peng Len Chua director of Plantation & Development Berhad (P&D), was charged on 22 February 2001 for abetting P&D in utilising its public issue proceeds amounting to RM26,493,335.57 for purposes other than as approved by SC.

Chua, was also charged for causing the submission of a false statement to SC in relation to the utilisation of the public issue proceeds.

Chua pleaded guilty and was convicted on 17 September 2001 for the offence of misutilising the company�s public issue proceeds.

In passing sentence the court took into consideration the outstanding offence of causing the submission of misleading information to SC that was admitted by him.

Chua was fined RM250,000 (in default 6 months imprisonment).

7. Operating an illegal futures market Soo Chee Mun Soo and Chan, directors of HNY Worldwide Trade (M) Sdn Bhd (HNY), were charged on 31 March 2001 for operating an illegal futures market through HNY. Soo pleaded guilty and was convicted on 5 December 2001 of the offence.

He was sentenced to 2 years imprisonment and fined RM500,000 (in default 2 years imprisonment).

Soo appealed against his conviction and sentence. The High Court maintained the fine of RM500,000 but set aside the 2 years imprisonment.

The charge preferred against Chan on 31 March 2001 was withdrawn upon the plea of guilt by Soo.

Chan Swee Foo
Outcome of Criminal Prosecution � Persons JAILED
No. Nature of Offence Offender(s) Facts of Case Sentence
1. Fraud involving IPO share applications Safiruri Idham Firdaus Safiruri was charged on 20 March 2000 for engaging in an act which operated as a fraud upon UPA Corporation Berhad (UPA) by switching successful balloted envelopes of UPA initial public offering share applications with envelopes that were not put through the balloting process. Safifuri pleaded guilty and was convicted on 31 January 2001.

He was sentenced to 30 months imprisonment.