No Nature of Offence Offender(s) Facts of Case Punishment
OUTCOME OF CRIMINAL PROSECUTION – PERSONS ACQUITTED

1.

Short selling

CIMB Securities Sdn Bhd

CIMB Securities was charged for short selling because its dealer’s representative Ng Wai Hong had short sold 22,000 units of Arab Malaysian Corporation Bhd shares on 29 August 1997.


CIMB was charged on 11 December 1997.


Ng pleaded guilty to the charge on 17 December 2004.

As a result of the plea of guilt of Ng, Prosecution withdrew the charge against CIMB Securities.

2. Submission of false statement to the SC in connection with proposal submitted Tan Siew Hui Tan, the group financial controller of TCL Premier Holdings Bhd, had caused a letter dated 6 January 1997 that contained false information to be submitted to SC.

Tan was acquitted and discharged by the Sessions Court on 6 January 2004 at the end of Prosecution’s case.


Prosecution appealed against the decision of the Sessions Court. This matter is currently pending appeal.

CRIMINAL PROSECUTION INITIATED – PERSONS CHARGED

1.

Failing to advise the SC upon becoming aware, before proposal was fully implemented, that information submitted to the SC may be false


Causing to be issued a prospectus containing information from which there is a material omission


Causing to be issued a prospectus which contained false information

Wira Tjakrawinata

Wira, also known as Kenneth Chow, failed to inform the SC upon becoming aware, before Omega Holdings Bhd’s proposal was fully implemented, that the information on the sales concession agreement between Milan Auto (M) Sdn Bhd and Fiat Auto SpA may be false.


Wira was also charged for causing to be issued Energro Bhd’s prospectus that contained information from which there is a material omission pertaining to the said sales concession agreement.


The third charge Wira is facing is for causing to be issued Energro Bhd’s prospectus that contained false information namely, the revenue for 2003 is RM82.336 million and the number of Alfa Romeo cars sold in 2003 is 558.


Both Wira and Ng were charged on 14 October 2004.

Causing to be issued a prospectus which contained false information Ng Chee Loong Ng, principal of Messrs Ng & Associates, was charged for causing to be issued Energro Bhd’s prospectus that contained false information namely Milan Auto (M) Sdn Bhd’s turnover for 2003 is RM82.336 million.

2.


Securities fraud


Criminal breach of trust

Yip Yee Foo


Yip and Chung, directors of Cold Storage (Malaysia) Bhd (CSM), were charged for defrauding CSM by transferring RM185 million of CSM’s funds to pay for the purchase of CSM shares by Fulham Finance and Trade Ltd and Excoplex Sdn Bhd.


Yip and Chung were both charged in the alternative for criminal breach of trust of the said RM185 million.


Yip and Chung were charged on 24 September 2004.

Chung Wai Meng
3.

Breach of condition of the SC’s approval


Criminal breach of trust

Dato’ Tan Hooi Chong

Dato’ Tan, a director of Kiara Emas Asia Industries Bhd (KEAIB), was charged for committing criminal breach of trust in relation to RM16,937,739.20 of the rights issue proceeds of KEAIB on three occasions.


He was also charged with three alternative charges of abetting KEAIB in breaching the terms and conditions imposed by the SC in relation to the utilisation of KEAIB’s rights issue proceeds.

Dato’ Tan was charged on 16 September 2004.


4.


Officer/any other person who submitted false information/ statement to the SC

Tan Kam Sang


Tan was the accountant of Kiara Emas Asia Industries Bhd (KEAIB) while Ravandaran was the audit partner of Messrs. Arthur Andersen & Co. who was in-charge of KEAIB’s audit.


They are both charged for furnishing false information to the SC in the “Follow Up Questionnaires” for the financial years ended 31 March 1997, 1998, 1999 and 2000 on the status of utilisation of rights issue proceeds when in fact RM16,937,739.20 of KEAIB’s rights issue proceeds was fully utilised by 31 December 1996 in contravention of the SC’s conditions.


Both Tan and Ravandaran were charged on 13 August 2004.

Ravandaran a/l Thangeveloo

5.

Falsification of records of a futures broker

K Sivachandran a/l Kuhiappan

Sivachandran, a licensed futures brokers representative, was charged for having caused information contained within the order forms and order book of AOF Futures Sdn Bhd, a licensed futures broker, to be falsified. The information that was allegedly falsified was in relation to account numbers belonging to clients under Sivachandran’s management.

Sivachandran was charged on 7 May 2004.

OUTCOME OF CRIMINAL PROSECUTION – PERSONS FINED

1.

Short selling

Ng Wai Hong

Ng, a dealer’s representative of CIMB Securities Sdn Bhd short sold 22,000 units of Arab Malaysian Corporation Bhd shares on 29 August 1997.


Ng was charged on 11 December 1997.


On 17 December 2004, Ng pleaded guilty to the offence at the stage of submissions at the close of prosecution’s case.

Ng was fined RM300,000 (in default one year’s imprisonment). The fine was paid.


2.


Short selling


CIMB Securities Sdn Bhd (CIMB Securities)


CIMB Securities, Credit Lyonnais and Ng short sold 141,000 units of Proton Bhd shares.


CIMB Securities, Credit Lyonnais and Ng were charged on 11 December 1997.


CIMB Securities, Credit Lyonnais and Ng were convicted on 17 May 2004.


CIMB Securities and Credit Lyonnais were fined RM400,000 each and Ng was fined RM200,000 (in default one year’s imprisonment). The fine was paid.


CIMB Securities, Credit Lyonnais and Ng filed an appeal against the conviction and sentence.


Prosecution filed cross-appeals against all parties on the sentences.

Credit Lyonnais Securities Pte Ltd (Credit Lyonnais)
Ng Wai Hong