No.

Nature of Offence

Offender(s)

Facts of Case

Date Charged/Sentence

Criminal Prosecution Initiated – Persons Charged
1. Authorising the furnishing of false statements to Bursa Malaysia Securities Berhad and providing false information contained in INIX Technologies Holdings Bhd’s prospectus. Jimmy Tok Soon Guan

Mok Chin Fan

Cheong Kok Yai

Normah binti Sapar

Mok Chin Fan, Jimmy Tok Soon Guan & Cheong Kok Yai (Directors of Inix Technologies Holding Bhd) were charged for offences under s.122B(b)(bb) SIA for knowingly authorising the furnishing of false statements (in relation to Inix’s 4 quarterly reports for FYE 31 July 2006; i.e. 31 Oct 2005, 31 Jan 2006, 30 April 2006 & 31 July 2006) to Bursa and under section 55(1)(a) SCA for issuance of INIX Prospectus, which contains information that is false. Normah binti Sapar was charged for abetting Jimmy Tok for all the aforesaid offences. Charged on 23 September 2010.
2. Failure to appear at the Securities Commission in order to provide a statement in connection with the Securities Commission’s investigation of INIX Technologies Holdings Bhd’s Normah binti Sapar

Chong Poh Ying

Helen Soon Shiau Yen

Chong Poh Ying, Helen Soon Shiau Yen, and Normah Binti Sapar were charged under s.134(1)(b) of the Securities Commission Act 1993 for failing to appear at the Securities Commission in order to provide a statement in connection with the Securities Commission’s investigation into INIX’s affairs. Charged on 23 and 27 September 2010
Criminal Prosecution Initiated – Persons Jailed
1. Holding out as a fund manager without a license

[s.15A(1) of the Securities Industry Act]

Phazaluddin bin Abu Phazaluddin bin Abu was charged under section 15A of the Securities Industry Act 1983, where he was charged to have held himself out to be a fund manager without a license.

He was alleged to have committed the offence through the internet website www.danafutures.com. The website, among others, stated that investments from the general public would be invested in securities.

 

Phazaluddin was charged on 29 February 2008.

On 22 June 2010, the Sessions Court convicted him on the offence under s.15A(1) of the SIA and 3 other offences filed by Attorney’s General Chambers under s.4(1) of the AMLATFA.

On 9 July 2010, the Sessions Court sentenced Phazaluddin to 4 years imprisonment for the offence under section 15A of the SIA and 2 years imprisonment for each of the other 3 offences under AMLATFA. The Court ordered for the sentences to run concurrently.

Upon Phazaluddin’s application, the Sessions Court granted for a stay of execution on the imprisonment term pending appeal.

He filed an appeal against the sentence to the High Court on 9 July 2010.

Criminal Prosecution Initiated – Persons Fined
1. Knowingly authorising the furnishing of false statements to Bursa Malaysia Ng Kim Weng

 

Ng, former Group Managing Director of Polymate Holdings Berhad (PHB) and Managing Director of ABI Malaysia Sdn Bhd (its wholly owned subsidiary), was charged for knowingly authorising the furnishing of false statements to Bursa Malaysia, namely the inflated revenue and trade receivables of PHB for the year ended 30 September 2003, as contained in PHB’s 2003 annual report. Ng was charged on 7 February 2007.

Ng pleaded guilty to the charge on 20 October 2009. The Sessions Court convicted Ng and sentenced him to a fine of RM300,000 (in default 1 year imprisonment).

Prosecution filed an appeal against the sentence to the High Court on 3 November 2009. On 5 February 2010, the High Court dismissed the Prosecution’s appeal.

The sentence of fine was upheld by the High Court.

2. Causing to be submitted false information to SC in connection with a proposal Chan Kok Suan Chan Kok Suan, the Group Managing Director of Granasia Corporation Bhd, (“GCB”), was charged for causing to be submitted to SC false information, namely the revenue and profit after tax of GCB for the year ended 31 Dec 2002.

This information was submitted in connection with GCB’s listing proposal on the Main Board of the Exchange.

Chan was charged on 9 February 2006.

He pleaded guilty on 1 March 2010 and was sentenced to a fine of RM500,000.00 and in default of imprisonment 10 months.

Prosecution has filed an appeal against the sentence to the High Court.

3. Knowingly authorised the furnishing of a misleading statement to Bursa Malaysia Berhad relating to affairs of a listed corporation Ooi Boon Leong Ooi Boon Leong, the Director and substantial shareholder of Mems Technology Berhad, was charged for knowingly authorised the furnishing of a misleading statement to Bursa Malaysia Berhad. The misleading statement is in relation to Mems Technology Berhad group’s revenue for year ended 31 July 2007 contained in its condensed consolidated income statements for the 12 month period ended 31 July 2007. Ooi Boon Leong was charged on 16 April 2009.

He pleaded guilty on 25 February 2010 and was sentenced to a fine of RM300,000 (in default, 2 years imprisonment).

Prosecution has filed an appeal against the sentence to the High Court.

4. Knowingly authorised the furnishing of a misleading statement to Bursa Malaysia Berhad relating to affairs of a listed corporation Tan Yeow Teck Tan Yeow Teck, the former Director and Chief Financial Officer of Mems Technology Berhad, was charged together with Ooi Boon Leong for knowingly authorised the furnishing of a misleading statement to Bursa Malaysia Berhad. The misleading statement is in relation to Mems Technology Berhad group’s revenue for year ended 31 July 2007 contained in its condensed consolidated income statements for the 12 month period ended 31 July 2007. Tan Yeow Teck was charged on 16 April 2009.

He pleaded guilty on 25 February 2010 and was sentenced to a fine of RM300,000 (in default, 2 years imprisonment).

Prosecution has filed an appeal against the sentence to the High Court.

5. Market manipulation (Dato’) Chin Chan Leong

Hiew Yoke Lan

Chin was charged for creating a misleading appearance of active trading in Fountain View Development Berhad (FVDB) shares through transactions that did not involve any change in beneficial ownership on Bursa Malaysia through 20 central depository securities accounts.

Hiew, former remisier at Avenue Securities Sdn. Bhd., was charged for abetting Chin in the said offence.

Chin and Hiew were charged on 27 June 2005.

Both Chin and Hiew pleaded guilty to the charge on 5 February 2010. The Sessions Court sentenced Chin to a fine of RM1.3 million (in default 13 months imprisonment) as well as a one-day imprisonment while Hiew was fined RM1 million (in default 10 months imprisonment).

Prosecution filed an appeal against the sentence to the High Court.

Outcome of Criminal Prosecution
1. Short selling

[s.41(1) of the SIA 1983]

Credit Lyonnais Securities Pte Ltd (Credit Lyonnais)

CIMB Securities Sdn Bhd (CIMB Securities)

Ng Wai Hong

Credit Lyonnais, CIMB Securities (agent of Credit Lyonnais) and Ng Wai Hong (dealer representatives of CIMB Securities) were charged for short selling of 141,000 units of Proton Bhd shares under section 41(1)(a) Securities Industry Act 1983 and punishable under section 41(2) of the same Act.

At the end of the trial, the Sessions Court convicted all of the accused persons. Credit Lyonnais and CIMB Securities were fined RM 400,000 each, whereas Ng Wai Hong was sentenced to a fine of RM200,000 in default 1 year imprisonment.

Credit Lyonnais and CIMB Securities appealed against their convictions and sentence. Ng Wai Hong paid the fine and did not file any appeal.

The Public Prosecutor also cross appealed against the inadequacy of sentence.

The appeals and cross appeal was set on 21 January 2010 for hearing by way of revision before the High Court.

At the hearing of the revision the High Court ordered a retrial. The High Court held inter alia that it is not in a position to hear the revision since the original documentary exhibits cannot be located by the Sessions Court.

The charges against both accused were withdrawn on 25 June 2010 after both accused paid a compound of RM 1 million each.

2. Defrauding clients of an asset management company

Criminal breach of trust

Wan Muhammad Hasni bin Wan Sulaiman Wan Muhammad Hasni, the Executive Chairman of Abrar Global International Sdn Bhd (AGI), was charged on 24 July 1999, for engaging in an act that operated as a fraud on clients of Abrar Global Asset Management Sdn Bhd (AGAM), a wholly owned subsidiary of AGI, by causing the misutilisation of clients’ funds totalling RM5.0 million that was meant for investment purposes.

Wan Muhammad Hasni was also charged in the alternative for criminal breach of trust involving the RM5 million of client funds.

The High Court has reversed the decision of the Sessions Court and acquitted Wan Muhammad Hasni.

The Public Prosecutor has appealed to the Court of Appeal against the decision of the High Court.

On 11 November 2010, the Court of Appeal unanimously dismissed the Prosecution’s appeal and affirmed the High Court’s decision to quash the conviction of the Respondent.

Outcome of Criminal Prosecution – Person Convicted
1. Defrauding a stockbroking company Yeoh Guan Yong Yeoh, was engaged in an act which operated as a fraud upon Hwang DBS Securities Sdn Bhd. Yeoh Guan Yong was charged on 8 September 1999.

Yeoh was acquitted and discharged by the Sessions Court on 20 January 2006 at the end of Defence’s case.

Prosecution filed an appealed in the High Court against the decision of the Sessions Court.

On 5 March 2010, Penang High Court allowed the Prosecution’s appeal and Yeoh’s acquittal order was substituted with a conviction under s.87A (b) SIA.

The sentencing is deferred until the Warrant of Arrest is executed against Yeoh.

Outcome of Criminal Prosecution – Persons Fined
1. Acting as a fund manager’s representative without a licence Siti Mariam bte Berahim Siti Mariam acted as fund manager’s representatives for Perdana Technology Sdn Bhd (Perdana Technology) without a licence. Siti Mariam and Dr. Barjoyai were both convicted of the offences on 13 March 2008.

On 25 March 2008, the Sessions Court fined Siti Mariam RM50,000, in default 6 months imprisonment and Dr. Barjoyai RM100,000 in default 8 months imprisonment. On 13 August 2010, the High Court dismissed the appeals of both accused and upheld the convictions by Sessions Court.

On 7 September 2010, the High Court dismissed the Prosecution’s cross appeal against the sentence and upheld the sentence ordered by the Sessions Court. The Prosecution has filed a notice of appeal against this decision.

Engaging unlicensed persons to carry out the activities of a fund manager’s representative Dr. Barjoyai Bardai Dr. Barjoyai, a director of Perdana Technology Ventures Sdn Bhd, had breached a condition of Perdana Technology Ventures’s fund manager’s licence by allowing two unlicensed persons to act as the company’s fund manager’s representative.
2. Fraud involving IPO share applications Ashari bin Rahmat Ashari 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 and Fauzi were charged on 20 March 2000.

On 22 April 2010, the Sessions Court convicted Ashari bin Rahmat under Section 417 Penal Code. He was sentenced to 1 day imprisonment and a fine of RM35,000.

Fauzi Ismail was also convicted under Section 417 Penal Code. He was sentenced to 1 day imprisonment and a fine of RM30,000. The Sessions Court had also forfeited Fauzi Ismail’s profits of over RM800.000.

Fauzi Ismail
Outcome of Criminal Prosection – Persons Jailed & Fined
1. Failing to advise SC upon becoming aware, before proposal 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 contains false information.

Wira Tjakrawinata Wira, also known as Kenneth Chow, had failed to inform SC upon becoming aware, before Omega Holdings Berhad’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 Berhad’s Prospectus that contains information from which there is a material omission pertaining to the said Sales Concession Agreement.

The 3rd Charge Wira is facing is for causing to be issued Energro Berhad’s Prospectus that contains false information namely, the revenue for 2003 is RM82.336 million and the number of Alfa Romeo cars sold in 2003 is 558.

Wira was charged on 14 October 2004.

Wira pleaded guilty to the 3rd charge and was convicted on 22 August 2005 for causing to be issued a prospectus which contains false information.

Wira was sentenced to 1 year imprisonment and fined RM500,000 (in default 1 month imprisonment).

Upon the plea of guilt for the third charge, the Court took into consideration to him admitting to the 1st and 2nd charges.

On 23 August 2005, upon Wira’s application, the court granted a stay of execution of the imprisonment sentence pending appeal.

Wira filed an appeal against the sentence and the appeal was heard by the High Court on 14 July 2006. On 19 July 2006, the High Court allowed the appeal against the sentence and quashed the decision by the Session Court and substituted the sentence with 1 day imprisonment and RM 2 million fine (in default 24 months imprisonment).

On 11 May 2010, after numerous efforts to execute the warrant of arrest against Wira were unsuccessful, the Court of Appeal struck out the appeal against sentence.

2. Engaging in an act that operated as a fraud on a public listed company

Criminal breach of trust

(Dato’ Lybrand) Ngu Tieng Ung 2 charges were preferred against Ngu Tieng Ung, Director of Pancaran Ikrab Berhad (PIB) at the material time, for engaging in an act that operated as a fraud on PIB by utilising RM15.5 million of PIB’s funds to finance his purchase PIB shares when the money was not meant to be utilised for that purpose.

Ngu was also charged for committing criminal breach of trust in respect of RM21.5 million of PIB’s funds.

Ngu is also faced with an alternative charge to the 3 charges for committing criminal breach of trust involving RM37 million of PIB’s funds.

Wong Jit Kiang was charged as an abettor to Ngu on all the aforesaid charges.

Ngu Tieng Ung and Wong Jit Kiang were charged on 5 May 2005.

Wong Jit Kiang failed to attend court since 23 March 2009 and on 24 March 2010, the Sessions Court granted a discharge not amounting to an acquittal against him. A warrant of arrest is still pending against him.

On 5 October 2010, Ngu pleaded guilty to the first and second charges under SIA 1983. The Sessions Court took into consideration the third charge and he was sentenced to 1 day imprisonment and RM1 million fines for each charge.

Prosecution filed an appeal against the sentence to the High Court on 6 October 2010.

(Daniel) Wong Jit Kiang
3. Market manipulation (Dato’) Chin Chan Leong

Hiew Yoke Lan

Chin was charged for creating a misleading appearance of active trading in Fountain View Development Berhad (FVDB) shares through transactions that did not involve any change in beneficial ownership on Bursa Malaysia through 20 central depository securities accounts.

Hiew, former remisier at Avenue Securities Sdn. Bhd., was charged for abetting Chin in the said offence.

Chin and Hiew were charged on 27 June 2005.

Both Chin and Hiew pleaded guilty to the charge on 5 February 2010. The Sessions Court sentenced Chin to a fine of RM1.3 million (in default 13 months imprisonment) as well as a one-day imprisonment while Hiew was fined RM1 million (in default 10 months imprisonment).

On 2 September 2010, the High Court dismissed the appeal against the sentence against Chin.

Prosecution filed an appeal against the sentence to the Court of Appeal.

4. Furnishing misleading statement to the SC and stock exchange Ang Sun Beng

Ang Soon An

Ang Sun Beng and Ang Soon An, the former Managing Director and Executive Director of Welli Multi Corporation Berhad (WMCB), were both charged with four counts under s.122B(a)(bb) SIA 1983 read together with s.122(1) SIA 1983 for furnishing misleading statements in WMCB’s annual report for FYE 2005 and the first 3 quarterly reports of FYE 2006 to the SC and Bursa Malaysia Securities Berhad respectively. Ang Sun Beng and Ang Soon An were charged on 15 April 2008.On 11 October 2010, both the accused pleaded guilty to the first charge and the other three charges were taken into consideration under section 171A CPC for sentencing.They were sentenced to one day jail and a of fine RM400,000 each (in default 1 year imprisonment).
Outcome of Criminal Prosecution – Person Imprisoned
1. Submission of false information to the SC, failure to maintain trust account for client’s money and concealment of records to obstruct audit carried out by the SC. Muhamad Khalid Ismail Muhamed Khalid, a director of Oasis Asset Management Sdn Bhd (Oasis) (formerly known as Corporate Eight Asset Management Sdn Bhd), was charged for the following:

  • Submitting false statements to the SC in relation to the funds managed by Oasis;
  • Concealing records of Oasis in relation to the investment made by Koperasi Angkatan Tentera Malaysia Bhd (KATMB) totaling RM45 million with the intent to obstruct an audit carried out by the SC;
  • Failing to maintain a trust account for the investment received from KATMB; and
  • Criminal breach of trust in connection with RM16.5 million of the investment received from KATMB.
Muhamad Khalid was charged on 2 September 2003.

Muhamad Khalid was convicted on 20 May 2010 whereby he was sentenced to 1 year imprisonment for offences under SIA which were to run concurrently.

Muhamad Khalid was also sentenced to 2 years imprisonment for CBT offence, commencing after the period for the SIA convictions have been served.

Outcome of Criminal Prosecution – Persons Acquitted
1. Illegal fund manager Anuar Abdul Aziz Anuar was charged with carrying out the functions of a fund manager’s representative for Corporate Eight Asset Management Sdn Bhd (now known as Oasis Asset Management Sdn Bhd) without a licence. Anuar was charged on 2 September 2003.

He was acquitted by Sessions Court on 20 May 2010.

2. False Statements to Bursa in four of Satang Holding Berhad’s quarterly financial reports. Jamaluddin bin Hassan Jamaluddin (Executive Chairman and Managing Director), Gan (Executive Director) and Hakim (Executive Director) were charged with knowingly authorizing the furnishing of false statements to Bursa Malaysia in 4 of its quarterly financial reports. Jamaluddin, Gan and Hakim were charged on 4 December 2008.

They were acquitted by Sessions Court on 17 May 2010.

Hakim bin Sukirman
3. Market manipulation Low Thiam Hock Low, Executive Chairman of Repco Holdings Bhd (Repco), was charged for manipulating the price of Repco shares. Low was charged on 19 September 1999. He was acquitted and discharged on 14 November 2006.

On 15 October 2010, the High Court dismissed the Prosecution’s appeal against the acquittal.

4. Market manipulation Mohd Raffique bin Ibrahim Sahib

Ariffin bin Abdul Majid

Mohd Raffique and Ariffin were charged with one charge each for instructing the purchase of Actacorp Holdings Bhd warrants (“AW”) in December 1997 where such purchases were intended to increase the price of AW, which acts were calculated to create a misleading appearance with respect to the price of AW on the KLSE. Both the accused Ariffin Bin Abdul Majid and Raffique Ibrahim were acquitted and discharged by the Sessions Court on 1 April 2009.

On 26 October 2010, the High Court dismissed the Prosecution’s appeal, affirming the acquittal and discharge of the Sessions Court.

Outcome of Criminal Prosecution – Persons Charged
1. Abetting Poh Gaik Lye in using a scheme to defraud Liqua Health Corporation Berhad (Liqua) in connection with the purchase of 45,960,450 units of Liqua shares

[Section 87A(a) read together with Section 122C(c) of the Securities Industry Act]

Goh Bak Ming Goh Bak Ming, the Managing Director of Liqua at the material time, was charged for abetting Poh Gaik Lye in using a scheme to defraud Liqua by causing Liqua Health Marketing (M) Sdn Bhd (LHMM) to enter into Distribution Agreement (DA) with Wynsum, when in fact the DA was to facilitate the transfer of RM12 million belonging to LHMM to Wynsum’s bank account, whereby RM9.75 million of the said money was utilized to finance the purchase of 45,969,450 units of Liqua shares when the money was not meant to be utilised for that purpose. Goh Bak Ming was charged on 8 June 2010.
2. Using a scheme to defraud Liqua Health Corporation Berhad in connection with the purchase of 45,960,450 units of Liqua shares

[s.87A(a) of the SIA]

Alice Poh Gaik Lye Alice Poh Gaik Lye, businesswoman and former business coordinator of Liqua at the material time, was charged under s.87A(a) of the SIA for using a scheme to defraud Liqua by causing Liqua Health Marketing (M) Sdn Bhd to enter into Distribution Agreement (DA) with Wynsum, when in fact the DA was to facilitate the transfer of RM12 million belonging to LHMM to Wynsum’s bank account, whereby RM9.75 million of the said money was utilized to finance the purchase of 45, 969,450 units of Liqua shares. Alice Poh Gaik Lye was charged on 14 June 2010.
3.
  • Act to defraud
    [s.87A(b) r.t.w s.122C(c) SIA]
  • Criminal breach of trust
    [s.409 PC]
  • Cheating
    [s.420 r.t.w s.109 PC]
  • Knowingly permitting the submission of false information to the Stock Exchange
    [s.122B(b)(bb) of the SIA]
    [s.369(b)(B) of the CMSA]
Alan Rajendram a/l Jeya Rajendram Alan Rajendram a/l Jeya Rajendram, a former director of LFE Corporation Berhad (LFE), was charged with securities fraud and 8 other offences he allegedly committed when he was the director of the company.

Alan, was charged under section 87A(b) Securities Industry Act 1983 for committing an act that operated as a fraud on LFE by using RM9 million of LFE’s monies to finance the purchases of LFE shares pursuant to a private placement and restricted offer of LFE shares to him. The alleged act is said to have been committed between 4 January 2007 and 8 February 2007.

Alan also faces two other charges under section 122B(b)(bb) of the Securities Industry Act and another two charges under section 369(b)(B) of the Capital Markets and Services Act 2007 for knowingly permitting the furnishing of false statements by LFE to Bursa Malaysia Securities Berhad in relation to LFE’s unaudited financial results for all four quarters for its financial year ended 31 December 2007.

Apart from the securities law breaches, Alan was also charged for criminal breach of trust under the section 409 of the Penal Code of a further RM9.99 million of LFE’s monies and further three charges for abetting two other Directors of LFE in cheating EON Bank Berhad of RM3.96 million by supplying fictitious documents to enable the drawdown on LFE’s banking facilities.

Alan Rajendram was charged on 24 June 2010.
4.
  • Abetting to an act to defraud
    [s.87A(b) r.t.w s.122C(c) SIA 1983]
  • Abetting to commit criminal breach of trust
    [s.409 r.t.w. s.109 PC]
  • Abetting to Cheat
    [s.420 rtw s.109 PC]
Eswaramoorthy Pillay s/o Amuther Eswaramoorthy Pillay s/o Amuther (‘Pillay’) was charged for abetting Alan Rajendram a/l Jeya Rajendram (‘Alan’), a former Director of LFE Corporation Berhad (‘LFE’), in committing securities fraud and 4 other Penal Code offences.

Pillay was charged under section 87A(b) read together with section 122C(c) of the Securities Industry Act 1983 for abetting Alan to commit an act that operated as a fraud on LFE. The fraud involved the use of RM9 million of LFE’s monies to finance Alan’s purchases of LFE shares pursuant to a private placement and restricted offer of LFE shares. The alleged act is said to have been committed between 4 January 2007 and 8 February 2007.

He was also charged under section 409 read together with section 109 of the Penal Code for abetting Alan to commit criminal breach of trust of a further RM9.99 million of LFE’s monies. Another three charges were also preferred against Pillay for abetting two other Directors of LFE in cheating EON Bank Berhad of RM3.96 million by supplying fictitious documents to enable the drawdown on LFE’s banking facilities.

Eswaramoorthy was charged on 29 June 2010.