No.

Nature of Offence

Offender(s)

Facts of Case

Sentence

Outcome of Criminal Prosecution – Persons Acquitted
1. Submission of false information to the SC
  • Tan Kam Sang
  • Ravandran a/l Thangeveloo
Tan, a former accountant of Kiara Emas Asia Industries Bhd (KEAIB) and Ravandaran, a former audit partner of Messrs. Arthur Andersen & Co. who was in-charge of KEAIB’s audit were both charged on 13 August 2004 for furnishing false information to the SC.

The information was said to be contained in the “Follow Up Questionnaires” of KEAIB for the financial years ended 31 March 1997, 1998, 1999 and 2000 on the status of the utilisation of proceeds of a rights issue by KEAIB when in fact RM16,937,739.20 of the right issue proceeds had been utilized in breach of the conditions of the Securities Commissions’ letter of approval dated 14 November 1996.

Both Tan and Ravandaran were charged on 13 August 2004.

On 13 December 2012, both Tan and Ravandaran were acquitted and discharged by the Sessions Court at the end of the prosecution’s case. The SC has filed an appeal to the High Court against the decision of the Sessions Court.

Outcome of Criminal Prosecution – Persons Jailed
1. Knowingly permitting the submission of false information to the Stock Exchange Alan Rajendram a/l Jeya Rajendram Alan Rajendram a/l Jeya Rajendram, a former director of LFE Corporation Berhad (LFE), was charged on 24 June 2010 with two charges under s.122B(b)(bb) of the SIA and two charges under s.369(b)(B) of the CMSA 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.

On 14 May 2012, after hearing submissions from both parties, the Sessions Court ruled that the Prosecution had established a prima facie case and ordered the accused to enter his defence.

On 10 October 2012, after hearing submissions from both parties, the Sessions Court found that the accused had failed to raise a reasonable doubt in the prosecution’s case and found the accused guilty of all four charges. He was convicted and sentenced to a jail term of 12 months and a fine of RM300,000 for each charge. The jail term is to be served concurrently.
Outcome of Criminal Prosecution – Persons Acquitted
1. 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.

On 31 July 2012, the Court of Appeal dismissed the Prosecution’s Appeal, affirming the decision of the High Court and Session’s Court in acquitting and discharging both the respondents at the end of the defence case.

2. Criminal breach of trust Alan Rajendram a/l Jeya Rajendram Alan Rajendram a/l Jeya Rajendram, a former Director of LFE Corporation Berhad (‘LFE’), was charged on 24 June 2010 with two counts of criminal breach of trust (CBT) under section 409 of the Penal Code. The breach of trust alleged involved the use of RM9mil and RM9.9mil of LFE’s monies. The acts were alleged to have been committed on 4, 11 and 16 January 2007. On 14 May 2012, after hearing submissions from both parties, the Sessions Court ruled that the prosecution had failed to establish a prima facie case with respect to the two charges of CBT against Alan. He was acquitted of the CBT charges at the end of prosecution’s case.
3. Abetting to commit criminal breach of trust Eswaramoorthy Pillay s/o Amuther Eswaramoorthy Pillay s/o Amuther (‘Pillay’) was charged on 29 June 2010 with two counts of abetting Alan Rajendram a/l Jeya Rajendram (‘Alan’), a former director of LFE Corporation Berhad (‘LFE’), to commit criminal breach of trust (CBT) offences. Pillay was charged under section 409 of the Penal Code read together with s.109 of the Penal Code. The alleged breach of trust involved the use of RM9mil and RM9.9mil of LFE’s monies. The acts were alleged to have been committed on 4, 11 and 16 January 2007. On 14 May 2012, after hearing submissions from both parties, the Sessions Court ruled that the prosecution had failed to establish a prima facie case with respect to the two charges of abetting Alan Rajendram to commit CBT. Pillay was acquitted at the end of the prosecution’s case.
4. Illegal fund management activities Anuar Abdul Aziz Anuar was charged with acting as a fund manager’s representative for Corporate Eight Asset Management Sdn Bhd (now known as Oasis Asset Management Sdn Bhd) without holding a fund manager’s representative’s licence. Anuar was charged on 2 September 2003. He was acquitted by the Sessions Court on 20 May 2010 at the end of Prosecution case.

On 12 October 2012, the High Court dismissed the appeal by the Prosecution. The Prosecution filed an appeal to the Court of Appeal against the decision of the High Court.

Criminal Prosecution Initiated – Persons Charged
1. Market manipulation
  • Dato’ Goh Hock Choy
  • Siow Chung Peng
Dato’ Goh Hock Choy was charged under section 84(1) of the Securities Industry Act 1983 (“SIA”) for creating a misleading appearance of active trading of Lii Hen Industries Berhad (“Lii Hen”) shares by being concerned in the sale and purchase of Lii Hen shares that did not involve any change of beneficial ownership. The manipulative trades were allegedly executed through 42 accounts at nine stockbroking firms. The offence was alleged to have been committed between 26 March 2004 and 28 October 2004.

Siow Chung Peng was charged under Section 84(1) of the SIA read together with Section 122C(c) of the same Act for abetting Goh Hock Choy in the principal offence above.

Goh Hock Choy and Siow Chung Peng were both charged on 4 September 2012.
2. Insider trading Sreesanthan A/L Eliathamby Sreesanthan was charged with seven counts of insider trading under section 188(2)(a) of the Capital Markets and Services Act (CMSA) and section 89E(2)(a) of the Securities Industry Act (SIA). He was alleged to have traded in the shares of four public listed companies while in possession of inside information relating to various corporate exercises, details of which are stated below:

  • Sime Darby Berhad while in possession of the proposed acquisition by Synergy Drive of companies within the Sime Darby, Guthrie and Golden Hope groups.
  • Maxis Communication Bhd while in possession of Maxis’ privatisation.
  • UEM World Berhad while in possession of the corporate restructuring exercise of the UEM group.
  • VADS Berhad while in possession of VADS’s proposed privatisation.
Sreesanthan A/L Eliathamby was charged 20 July 2012
Outcome of Criminal Prosecution – Persons Fined and Jailed
1. Engaged in an act which operated as a deceit Ashari Rahmat Ashari, an operating officer of MIH, was charged in 2000 for engaging in an act which operated as a deceit on UPA Corporation Berhad’s IPO exercise by switching successful applications with those not put through the balloting process. Ashari was convicted on 25 March 2009 by the Sessions Court.

On 25 March 2009, he was sentenced to 3 years imprisonment and a fine of RM1 million (in default 1 year imprisonment).

On 4 January 2012, the High Court ruled that the notice of appeal filed by Ashari was defective and struck out his appeal. His conviction was confirmed and the fine sentence of RM1 million was ordered to be paid.

The High Court allowed a stay of the jail sentence pending appeal to the Court of Appeal upon payment of bail in the sum of RM500,000.

2. Market manipulation (Dato’) Chin Chan Leong Chin was charged with 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. Chin was charged on 27 June 2005.

Chin 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.

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

On 27 June 2012, the Court of Appeal allowed the appeal by the Prosecution against the sentence imposed on Chin and substituted the 1 day jail sentence with a 12 month jail sentence. The Court of Appeal also affirmed the fine imposed by the Session Court.

3. Short

selling

Ahmad Shkri Ramli Shortselling of 202 lots of AKN Technology Berhad shares. Ahmad Skhri was charged on 16 January 2002 with shortselling of 202 lots of AKN Technology shares.

On 21 December 2006, he was convicted of the two charges under section 41(1)(a) SIA 1983 read together with section 122C(c) of the same Act for abetting PBSN in the short selling of 202 lots of AKN Technology Berhad shares. Ahmad Skhri was fined RM300,000 (in default 12 months imprisonment).

On 4 August 2009, the High Court dismissed Ahmad Shkri’s appeal. Both convictions on the short selling and the respective sentences of fine were upheld.

On 24 July 2012, the Court of Appeal dismissed Ahmad Shkri’s appeal and affirmed the High Court’s decision. The conviction on the short selling charges as well as the respective sentences were upheld. Ahmad Shkri had paid the fine of RM150,000 and served 6 months imprisonment in default of the balance of RM150,000.

On 24 September 2012 the Court of Appeal dismissed Ahmad Shkri’s application to review the Court of Appeal’s earlier decision and maintained the convictions and sentences.

4. 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 on 9 February 2006 for causing to be submitted to the SC false information, namely the revenue and profit after tax of GCB for the year ended 31 December 2002.

This information was said to have been submitted in connection with GCB’s listing proposal on the Main Board of the then Malaysia Securities Exchange Berhad.

Chan Kok Suan also faced an alternative charge as Foowood International Sdn Bhd (“FISB”) was said to have submitted false information namely the revenue and profit after tax of GCB for the year ended 31 December 2002 and he who was at the time of the commission of the offence was a director of FISB and was deemed to have committed an offence under section 32B(1)(c)(aa) read together with section 138(2) of the Securities Commission Act 1993.

Chan was charged on 9 February 2006.

He pleaded guilty to the alternative charge on 10 February 2010. On 10 March 2010 he was sentenced to a fine of RM500,000.00 (in default 10 months imprisonment).

On 14 July 2011, the High Court Judge maintained the RM500,000.00 fine but increased the default term of imprisonment sentence from 10 months to 2 years.

On 18 October 2012, the Court of Appeal dismissed the Prosecution’s appeal against the sentence.

Outcome of Criminal Prosecution – Persons Fined
1. Short selling Ahmad Skhri Ramli Ahmad Skhri short sold 202 lots of AKN Technology Berhad shares. Ahmad Skhri was charged on 16 January 2002.

On 21 December 2006, he was convicted of two charges under section 41(1)(a) SIA 1983 read together with section 122C(c) of the same Act for abetting PBSN in the short selling of 202 lots of AKN Technology Berhad shares.

Ahmad Skhri was fined RM300,000 (in default 12 months imprisonment).

On 4 August 2009, the High Court dismissed Ahmad Shkri’s appeal. Both convictions on the short selling and the respective sentences of fine were upheld.

On 24 July 2012, the Court of Appeal dismissed Ahmad Shkri’s appeal and affirmed the High Court’s decision. Both convictions on the short selling and the respective sentences were upheld.

Ahmad Shkri paid the fine of RM150,000 and served 6 months imprisonment in default of the balance of RM150,000.