Updates on Criminal Prosecution in 2016

No. Nature of Offence Offender(s) Facts of Case Sentence
Criminal Prosecution Initiated – Persons Charged
1. Insider trading

 

Fong Chiew Hean

Fong was charged with 9 counts of insider trading under section 188(2)(a) of the Capital Markets and Services Act 2007 (CMSA). He is alleged to have acquired 891,000 units of Three-A Resources Berhad (3A) shares through two accounts between 7 September 2009 and 5 October 2009 while in possession of inside information. The SC alleged that the inside information referred to in the charges related to the proposed collective venture between the businesses of 3A and Wilmar International Limited. Fong was charged on 25 October 2016.

2. Insider trading

Fang Siew Yee

Fang SY was charged under section 188(3)(a) of the Capital Markets and Services Act 2007 (CMSA) for having communicated to Fong Chiew Hean on 5 September 2009 inside information in relation to the proposed collective venture between the businesses of Three-A Resources Berhad (3A) and Wilmar International Limited.

Fang SY was also charged with 8 counts of insider trading under section 188(2)(a) of the CMSA. She is alleged to have acquired 2,720,000 units of 3A shares through the account of Tan Bee Geok between 27 August 2009 and 5 October 2009. The SC alleged that the inside information referred to in the charges related to the proposed collective venture between the businesses of 3A and Wilmar which later materialised through a 20% private placement of the issued and paid-up share capital of 3A to Wilmar.

Fang SY was charged on 25 October 2016
3. Insider trading

Fang Chew Ham

Fang CH was charged under section 188(3)(a) of the Capital Markets and Services Act 2007 (CMSA) for having communicated to Fong Chiew Hean on 5 September 2009 inside information in relation to the proposed collective venture between the businesses of Three-A Resources Berhad (3A) and Wilmar International Limited.

Fang CH was also charged under s370(c) read together with s188(2)(a) CMSA with 7 counts of abetting Fang Siew Yee in acquiring units of 2,600,000 3A shares between 27 August 2009 and 5 October 2009 while in possession of inside information relating to the proposed collective venture between the businesses of 3A and Wilmar which later materialised through a 20% private placement of the issued and paid-up share capital of 3A to Wilmar.

Fang CH was charged on 25 October 2016.
4. Insider trading

 

Tan Bee Geok

Tan was charged under section 370(c) read together with section 188(2)(a) of the CMSA with 8 counts of abetting Fang Siew Yee in acquiring 2,720,000 units of Three-A Resources Berhad (3A) shares between 27 August 2009 and 5 October 2009 while in possession of inside information relating to the proposed collective venture between the businesses of 3A and Wilmar which later materialised through a 20% private placement of the issued and paid-up share capital of 3A to Wilmar. Tan was charged on 25 October 2016.

 

5. Insider trading

Chew Lian Foon

Chew was charged under section 370(c) read together with section 188(2)(a) of the CMSA with 7 counts of abetting Fang Siew Yee in acquiring 2,620,000 units of Three-A Resources Berhad (3A) shares between 27 August 2009 and 2 October 2009 while in possession of inside information relating to the proposed collective venture between the businesses of 3A and Wilmar which later materialised through a 20% private placement of the issued and paid-up share capital of 3A to Wilmar. Chew was charged on 26 25 October 2016.
6. Insider trading

Ong Kok Aun

Ong was charged under section 370(c) read together with section 188(2)(a) of the CMSA with 1 count of abetting Fang Siew Yee in acquiring 100,000 units of Three-A Resources Berhad (3A) shares on 5 October 2009 while in possession of inside information relating to a 20% private placement of the issued and paid-up share capital of 3A to Wilmar. Ong was charged on 25 October 2016.
No. Nature of Offence Offender(s) Facts of Case Sentence
Criminal Prosecution Initiated – Persons Charged
1.

Misleading statement in a material particular

Ishak bin Ismail Ishak was charged with one count of making a misleading statement under section 177(b) of the CMSA in an article which was published in ‘The Star’ newspaper dated 5 June 2010. Ishak was charged on 13 June 2016.
Insider trading Ishak bin Ismail Ishak was charged with two counts of insider trading under section 188(2)(a) of the CMSA. He is alleged to have disposed of 58,691,900 Kenmark shares on 9 and 11 June 2010 while in possession of inside information that two of Kenmark’s clients had gone bankrupt and that EON Bank Berhad did not agree to uplift the receivership on Kenmark. Ishak was charged on 13 June 2016.
Criminal Prosecution Initiated – Persons Charged
1. Causing wrongful loss to a listed corporation [section 317A(1) of the CMSA read together with section 34 of the Penal Code]
  • Law Siew Ngok
  • Robert Daniel Tan Kim Leng
  • Ng Back Heang
  • Yap Wee Hin
Law, Tan, Ng and Yap, former executive directors of Patimas Computers Berhad (Patimas) were jointly charged with ten charges of causing wrongful loss to Patimas. They are alleged to have made payments totaling RM5.1 million between July 2010 to December 2010, for the purported development of various software for Patimas when in fact the payments were not used for such purpose. Law, Tan, Ng and Yap were charged on 29 September 2016.
2. Insider trading Yeow Kheng Chew Yeow was charged with 1 count of insider trading under section 188(2)(a) of the Capital Markets and Services Act 2007 (CMSA). He is alleged to have acquired 1,159,000 units of Kencana Petroleum Berhad (Kencana) shares through the account of Paulene Chee Yuet Fang on 8 July 2011 while in possession of inside information. The SC alleged that the inside information referred to in the charges related to the proposed merger of Kencana and SapuraCrest Petroleum Berhad. Yeow was charged on 29 July 2016.
3. Insider trading Paulene Chee Yuet Fang Chee was charged under section 370(c) read together with section 188(2)(a) of the CMSA with 1 count of abetting Yeow Kheng Chew in acquiring 1,159,000 units of Kencana Petroleum Berhad (Kencana) shares on 8 July 2011 while in possession of inside information relating to the proposed merger of Kencana and SapuraCrest Petroleum Berhad. Chee was charged on 29 July 2016.
4. Insider trading Tan Yee Chee Tan was charged under section 370(c) read together with section 188(2)(a) of the CMSA with 1 count of abetting Yeow Kheng Chew in acquiring 1,159,000 units of Kencana Petroleum Berhad (Kencana) shares on 8 July 2011 while in possession of inside information relating to the proposed merger of Kencana and SapuraCrest Petroleum Berhad. Tan was charged on 29 July 2016.
5.

Offering securities without having prospectus registered by the Securities Commission [s.232(1) read together with s.370(c) of the CMSA]

Raja Samsul Bahri bin Raja Muhammad (“Raja Samsul”) Raja Samsul was charged under s.232(1) read together with s.370(c) of the  CMSA 2007 and punishable under s.232(7) of the same Act.Raja Samsul was the former chief executive officer of Astana Resources Berhad (formerly known as JPG Holdings Berhad) when the company offered 6.9 million shares without a prospectus in relation to the said shares having been registered by the Securities Commission Malaysia under s.233 of the CMSA 2007. Raja Samsul was charged on 1 June 2016.
6. Issuance of securities without having prospectus registered by the Securities Commission [s.232(1) read together with s.370(c) of the CMSA]
  • Noor Aida binti Abdullah (“Noor Aida”)
  • Dato’ Abdul Malek bin Yusof (“Dato’ Abdul Malek”)
Noor Aida & Dato’ Abdul Malek were charged under s.232(1) read together with s.370(c) of the  CMSA 2007 and punishable under s.232(7) of the same Act.Both were directors of Astana Resources Berhad (formerly known as JPG Holdings Berhad), when the company issued 6.9 million shares without a prospectus in relation to the said shares having been registered by the Securities Commission under s.233 of the CMSA 2007. Noor Aida & Dato’ Abdul Malek was charged on 1 June 2016.
Outcome of Criminal Prosecution – Persons Charged
1. Furnishing false statements to Bursa Malaysia Securities Berhad.
  • Norhamzah Bin Nordin
  • Mohd Azham Bin Mohd Noor
  • Lim Hai Loon
Norhamzah was at the material time the Group Managing Director while Mohd Azham was an executive director of Kosmo Technology Industrial Bhd (“Kosmo Tech”).Both Norhamzah and Mohd Azham were charged under section 122B(a)(bb) read together with section 122(1) of the Securities Industry Act 1983 & section 369(a)(B) read together with section 367(1) of the Capital Markets & Services Act 2007 for furnishing false statements to Bursa Malaysia Securities Berhad in relation to Kosmo Tech’s eight quarterly reports on the unaudited consolidated results for the financial years 2006 and 2007.Lim Hai Loon, the Accounts Manager of Kosmo Tech at the material time was charged for abetting Kosmo Tech in furnishing the false statements to Bursa Malaysia Securities Berhad in relation to Kosmo Tech’s eight quarterly reports on the unaudited consolidated results for the financial years 2006 and 2007. Both Mohd Azham and Lim Hai Loon were charged at the Kuala Lumpur Sessions Court on 26 May 2011.
Norhamzah was charged at the Kuala Lumpur Sessions Court on 7 June 2011.On 23 September 2016, all three accused persons 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 Fined and Jailed
1. Misleading statements in connection with the purchase of securities[s.87A (c) of the SIA 1983] Wahid Ali Kassim Ali Wahid Ali, a director of Aiwanna Manage Assets Sdn Bhd (Aiwanna) was charged on 10 October 2005 with three counts of omitting to state a material fact, pertaining to the investment of Aiwanna’s client, Eastern Pacific Industrial Corporation Bhd (EPIC) whereby the material fact was necessary to make the statement of accounts issued to EPIC, not misleading. The High Court had on 14 January 2013 dismissed Wahid Ali’s appeal against his conviction and sentence imposed by the Sessions Court on 30 June 2009. Wahid Ali had then filed an appeal to the Court of Appeal. On 14 May 2015, the Court of Appeal remitted the case to the High Court for a re-hearing of the appeal.On 27 May 2016 at the re-hearing of the appeal, the High Court confirmed the conviction for all 3 charges. For each charge, he was sentenced to one year imprisonment term and a fine of RM1 million (in default of the total RM3 million fine, 1 year jail). The imprisonment term was ordered to be served concurrently. The High Court allowed for Wahid Ali’s application to stay the execution of the sentences pending appeal to the Court of Appeal.
2. Market manipulation Low Thiam Hock Low, Executive Chairman of Repco Holdings Berhad (Repco), was charged for manipulating the price of Repco shares under section 84(1) of the Securities Industry Act (‘SIA’) 1983. On 11 January 2016, the Sessions Court convicted Low of market manipulation under section 84(1) of the Securities Industry Act 1983.On 29 February 2016, Low was sentenced to 5 years imprisonment and a fine of RM5 million (in default 5 years imprisonment). Low has since filed an appeal to the High Court against his conviction and sentence.Background
Low was charged on 18 September 1999. At the end of the prosecution case during which 25 witnesses were called, the Sessions Court acquitted Low on the basis that the charge was not proven. The Securities Commission (“SC”) then appealed to the High Court which affirmed the Sessions Court decision. The Court of Appeal however, on 28 February 2013 overturned the decision of the High Court and ordered Low to defend the charge against him, reverting the case back to the Sessions Court. The defence case commenced on 18 October 2013.
3. Market manipulation
  • Wong Chee Kheong
  • Bun Lit Chun
Both Wong and Bun were charged for manipulating the price of Suremax Group Berhad shares through 153 accounts, in furtherance of their common intention with one Ng Chong Yeng under s84(1) of the Securities Industry Act 1983 (SIA) read together with section 34 Penal Code.In the alternative, they were charged for manipulating Suremax shares by creating a misleading appearance of active trading of Suremax shares through 9 accounts, in furtherance of their common intention with one Ng Chong Yeng under s84(1) SIA read together with section 34 Penal Code. On 9 March 2016, the Court of Appeal unanimously upheld the convictions against Wong and Bun. The Court of Appeal also affirmed the sentence of 24 months imprisonment and RM3 million fine imposed by the Sessions Court against Wong and a sentence of 3 months imprisonment and RM2 million fine against Bun.Background
Wong and Bun were charged on 25 October 2005.On 7 January 2011, Wong and Bun were convicted by the Sessions Court on the Alternative Charge.On 12 January 2011, Wong was sentenced by the Sessions Court to 24 months imprisonment and a fine of RM3 million (in default 6 months imprisonment). Bun was sentenced to 3 months imprisonment and a fine of RM2 million (in default 6 months imprisonment).

On 18 March 2014, the High Court affirmed the conviction and dismissed the appeals against conviction by both Wong and Bun.

On 27 March 2014, Bun’s appeal to the High Court against sentence was allowed in part where the sentence of imprisonment was reduced from 3 months to 1 day. The fine of RM2 million imposed by the Sessions Court was affirmed.

On 9 April 2014, the High Court dismissed Wong’s appeal against his sentence and affirmed the sentence of 24 months imprisonment and a fine of RM3 million.

Both Wong and Bun then filed their appeals to the Court of Appeal while the Prosecution filed a cross appeal against the reduced sentence of Bun.