On 10 June 2020, a civil action was initiated against Chang Kee Soon for breach of section 188(2) of the Capital Markets and Services Act 2007 (CMSA).

In respect of the acquisition of HPI Resources Berhad (HPI) shares by Chang Kee Soon, the SC sought, among others, the following:

• A declaration that Chang Kee Soon has contravened section 188(2) of the CMSA;
• Payment of the sum of RM1,198,702.83 which is equivalent to three (3) times the amount of RM399,567.61 being the difference between the price at which the said shares were acquired and the price at which the said shares would have been likely to have been acquired at the time of the trading if the Inside Information had been generally available;
• A civil penalty of RM1,000,000.00;
• An order that Chang Kee Soon be removed of directorship and management positions in any public listed companies in Malaysia;
• An order that Chang Kee Soon be barred from being a chief executive or director from being involved in the management, directly or indirectly of any public listed company in Malaysia for a period of 5 years from the date of judgment;
• An order that Chan Kee Soon be restrained from trading in any securities on Bursa Malaysia for a period of 5 years from the date of judgment.
• Interest; and
• Costs.

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• False trading and market rigging transaction
• Stock market manipulation

• Toh Lean Seng
• Tham Yoke Sing
• Lee Ai Peng
• Yap Wai Fong
•  Lee Beng Huat

On 8 May 2020, Securities Commission Malaysia (SC) filed a civil suit against the five individuals. The SC is seeking, among others:

• a declaration that Toh Lean Seng, Tham Yoke Sing, Lee Ai Peng, Yap Wai Fong and Lee Beng Huat have breached section 84(1) and section 84(3)(a) of the SIA;
• a declaration that Toh Lean Seng, Tham Yoke Sing, Lee Ai Peng, Yap Wai Fong and Lee Beng Huat have breached section 175(1) and section 175(3)(a) of the CMSA;
• An order that Toh Lean Seng, Tham Yoke Sing, Lee Ai Peng, Yap Wai Fong and Lee Beng Huat be barred from holding office and becoming a director of a public listed company for a period of five years;
• An order that Toh Lean Seng, Tham Yoke Sing, Lee Ai Peng, Yap Wai Fong and Lee Beng Huat are prohibited from trading in shares and securities for five (5) years;
• A sum up to three (3) times the amount of pecuniary gain made by each of that Toh Lean Seng, Tham Yoke Sing, Lee Ai Peng in contravention of section 175 of the CMSA;
• The sum of RM137,892.05 being the amount of pecuniary gain made by Yap Wai Fong in contravention of section 84 of the SIA and section 175 of the CMSA;
• The sum of RM3,580.72 being the amount of pecuniary gain made by Lee Beng Huat in contravention of section 84 of the SIA and section 175 of the CMSA;
• Interest; and
• Costs

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1. Wong Shee Kai (No. NRIC: 811212-14-5957)
2. Teh Sew Wan (No. NRIC: 500127-10-5696)
3. Wong SK Holdings Sdn. Bhd. (Syarikat No.: 729123-K)

On 5 May 2020, a civil action was initiated against Wong Shee Kai (Ricky Wong), Teh Sew Wan and Wong SK Holdings Sdn. Bhd. for breach of section 179(a) and/or section 179(b) of the Capital Markets and Services Act 2007 (CMSA) in respect of their involvement in several schemes to defraud Bright Packaging Industry Berhad (Bright Packaging) in connection with the sale of securities via Bright Packaging's rights issue, private placement and ESOS exercises.

The SC sought for the following:

• A declaration that Wong Shee Kai, Teh Sew Wan and Wong SK Holdings Sdn. Bhd. had contravened 179(a) and/or section 179(b) of the CMSA;
• That Wong Shee Kai and Teh Sew Wan be jointly and severally liable to pay the sum of RM140,323,500.00 being three (3) times the amount of their pecuniary gain of RM46,774,500.00;
• That Teh Sew Wan and Wong SK Holdings Sdn. Bhd. be jointly and severally liable to pay the sum of RM27,900,000.00 being three (3) times the amount of their pecuniary gain of RM9,300,000.00;
• That Wong Shee Kai, Teh Sew Wan and Wong SK Holdings Sdn. Bhd. pay a civil penalty of RM1,000,000.00 each;
• That Wong Shee Kai, Teh Sew Wan and Wong SK Holdings Sdn. Bhd. be restrained from disposing or dealing with their assets up to the value of RM169,223,500.00 pending final settlement of the civil action;
• That the SC would not be required to compensate Wong SK Holdings Sdn. Bhd. or any nominees, shareholders and/or entities related to Wong Shee Kai, Teh Sew Wan and Wong SK Holdings Sdn. Bhd. pursuant to section 200(3)(b) and/or section 360(1)(M) of the CMSA;
• That Wong Shee Kai and Teh Sew Wan be barred from becoming a chief executive, director or be involved in management directly or indirectly, of any other public company in Malaysia permanently or for such period the Court deems appropriate;
• Interest; and
• Costs.

On 8 May 2020, the High Court ordered that Wong Shee Kai, Teh Sew Wan and Wong SK Holdings Sdn. Bhd. be restrained from disposing or dealing with their assets up to the value of RM169,223,500.00 pending final settlement of the civil action.

Insider trading

Lee Swee Eng

On 29 April 2020, a civil action was initiated against Lee Swee Eng for an alleged breach of section 188(2) of the Capital Markets and Services Act 2007 (CMSA) in respect of the disposal of KNM Group Berhad shares by Lee Swee Eng. The SC sought, among others, the following:

• A declaration that Lee Swee Eng has contravened section 188(2) of the CMSA;
• Payment of the sum of RM11,003,574.00 which is equivalent to three (3) times the amount of RM3,667,858.00 being the difference between the price at which the said shares were disposed and the price at which the said shares would have been likely to have been disposed at the time of the disposal, if the Inside Information had been made generally available;
• A civil penalty of RM1,000,000.00;
• An order that Lee Swee Eng be removed of directorship and management positions in any public listed companies in Malaysia;
• An order that Lee Swee Eng be barred from being a chief executive or director from being involved in the management, directly or indirectly of any public listed company in Malaysia for a period of 5 years from the date of judgment;
• An order that Lee Swee Eng be restrained from trading in any securities on Bursa Malaysia for a period of 5 years from the date of judgment.
• Interest and Costs.

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On 9 April 2020, a civil action was initiated against Dato' Raymond Yap for breach of section 188(2) of the Capital Markets and Services Act 2007 (CMSA).

In respect of the disposal of Patimas Computers Berhad (Patimas) shares by Dato' Raymond Yap, the SC sought, among others, the following:

• A declaration that Dato' Raymond Yap has contravened section 188(2) of the CMSA;
• payment of the sum of RM3,286,770.00 which is equivalent to three (3) the amount of RM1,095,590.00 being the difference between the price at which the said shares were disposed and the price at which the said shares would have been likely to have been disposed of at the time of the trading if the Inside Information had been generally available;
• A civil penalty of RM1,000,000.00;
• An order that Dato' Raymond Yap be barred from being a Director of any public listed company for a period of 5 years;
• Interest; and
• Costs.

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On 9 April 2020, a civil action was initiated against Dato' Ng for breach of section 188(2) of the Capital Markets and Services Act 2007 (CMSA).

In respect of the disposal of Patimas Computers Berhad (Patimas) shares by Dato' Ng, the SC sought, among others, the following:

• A declaration that Dato' Ng has contravened section 188(2) of the CMSA;
• payment of the sum of RM1,237,500.00 which is equivalent to three (3) the amount of RM412,500.00 being the difference between the price at which the said shares were disposed and the price at which the said shares would have been likely to have been disposed of at the time of the trading if the Inside Information had been generally available;
• A civil penalty of RM1,000,000.00;
• An order that Dato' Ng be barred from being a Director of any public listed company for a period of 5 years;
• Interest; and
• Costs.

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Participation in false trading and market rigging transactions.

• Toh Lean Seng (“Toh”)
• Yap Wai Fong (“Yap”)

During the material period, abnormal price behaviour and volume pattern of RPB shares were detected. The SC claims that, in carrying out the Market Manipulation, the JTL Group and/or the Gan Group had enlisted 11 accountholders (“Accountholders”, made up of “Gan Accountholders” and “JTL Accountholders”) through 38 CDS accounts, whereby the accounts were managed as a group respectively. The SC further contends that the unusual price and volume movements of RPB shares during the material period was heavily influenced by the trading activities carried out by the Accountholders.

During the material period, Jeff was a director and shareholder of JTL Equities, whilst Yap was a remisier at AmInvestment Bank Berhad.

SC had filed a civil suit against Toh and Yap for breaching section 84(1) read together with section 84(3)(a) of the Securities Industry Act 1983 and section 175(1) read together with section 175(3) of the Capital Markets & Services Act 2007 for participating in false trading and market rigging transactions with regard to the trading of Reliance Pacific Berhad (RPB) shares.

On 8 May 2020, SC filed statement of claims against the Toh Lean Seng and Yap Wai Fong.

On 13 July 2020, Toh entered appearance. Toh served his statement of defence on 14 August 2020.

On 18 August 2020, Toh put in a representation to the SC to negotiate settlement.

On 18 September 2020, a Judgment in Default by the High Court recorded with Yap Wai Fong (bankrupt) for:

• RM137,892.05 with 5% interest rate per annum; and
• Costs of RM10,000.00.
• A declaration that the Defendants had breached the market manipulation provision;
• A prohibition from directorship of PLCs and from being involved in the capital market for the period of 5 years.

On 27 November 2020, a Consent Judgment by the High Court recorded with Toh Lean Seng for:

• RM300,000 in 6 equal monthly instalments with 5% interest rate per annum;
• Costs of RM25,000.00.
• A declaration that the Defendants had breached the market manipulation provision;
• A prohibition from directorship of PLCs and from being involved in the capital market for the period of 5 years.

On 23 December 2020, SC served Yap with a bankruptcy notice filed and dated on 21 December 2020.

On 12 October 2016, the SC filed a civil suit against Dato’ Sreesanthan, an advocate and solicitor for insider trading.

The SC sought the following reliefs:

• A declaration that Dato’ Sreesanthan had engaged in insider trading in respect of Worldwide Holdings Berhad shares between 7 June 2006 and 11 July 2006;
• A payment of the sum of RM1,989,402.00 which is equivalent to three times the amount of RM663,134.00 being the difference between the price at which the securities had been disposed of by Dato’ Sreesanthan and the price at which the securities would have been likely to have been disposed of at the time of the disposal, if the material non-public information had been generally available;
• Civil penalty of RM1,000,000;
• An order that Dato’ Sreesanthan be barred from being a director of any public listed company for a period of 10 years;
• Interest;
• Costs.

On 4 November 2020, after a full trial, the Kuala Lumpur High Court declared that the SC had successfully proven its claim against Dato’ Sreesanthan. The High Court granted the reliefs sought by the SC as follow:

• A declaration that Dato’ Sreesanthan had engaged in insider trading in respect of Worldwide Holdings Berhad shares between 7 June 2006 and 11 July 2006;
• A payment of the sum of RM1,989,402.00 which is equivalent to three times the amount of RM663,134.00 being the difference between the price at which the securities had been disposed of by Dato’ Sreesanthan and the price at which the securities would have been likely to have been disposed of at the time of the disposal, if the material non-public information had been generally available;
• Civil penalty of RM1,000,000;
• An order that Dato’ Sreesanthan be barred from being a director of any public listed company for a period of 10 years (with effect from 18 November 2020);
• Interest at the rate of 5% per annum on the judgment sum effective from 5 November 2020 until full realization thereof;
• Costs of RM100,000.

On 7 September 2020, a civil action was initiated against Tan Bee Geok for communicating inside information relating to APL Industries Berhad (“APLI”) to her sister, Tan Bee Hong, contrary to section 188(3)(a) of the Capital Markets and Services Act 2007 (CMSA).

In respect of Tan Bee Hong’s disposal of APLI shares, the SC claimed the following reliefs:

• that Tan Bee Geok pays a sum of RM105,000.00 which is equivalent to 3 times the loss avoided by Tan Bee Hong;
• that Tan Bee Geok pays a civil penalty of RM500,000;
• that Tan Bee Geok be barred from being a director of any public listed company or a subsidiary company of a public listed company for a period of (5) years from the date so ordered by the court;
• that Tan Bee Geok be barred from being involved in the management of any public listed company or a subsidiary company of a public listed company for a period of 5 years from the date so ordered by the court; and
• that Tan Bee Geok be restrained from trading in any counter on Bursa Malaysia for a period of five (5) years from the date so ordered by the court.

On 17 September 2020, the High Court recorded a consent judgment between the SC and Tan Bee Geok, and granted the reliefs sought by the SC.

Previously, Tan Bee Geok was charged at the Sessions Court for the same offence. The details of the criminal enforcement action can be found here:

https://www.sc.com.my/regulation/enforcement/actions/criminal-prosecution/updates-on-criminal-prosecution-in-2020

On 7 September 2020, a civil action was initiated against Tan Bee Hong for disposing APL Industries Berhad (“APLI”) shares whilst in possession of inside information, contrary to section 188(2)(a) of the Capital Markets and Services Act 2007 (CMSA).

The SC claimed the following reliefs:

• that Tang Bee Hong pays a sum of RM105,000.00 which is equivalent to 3 times the loss avoided by her;
• that Tang Bee Hong pays a civil penalty of RM500,000;
• that Tan Bee Hong be barred from being a director of any public listed company or a subsidiary company of a public listed company for a period of (5) years from the date so ordered by the court; and
• that Tan Bee Hong be barred from being involved in the management of any public listed company or a subsidiary company of a public listed company for a period of 5 years from the date so ordered by the court; and
• that Tan Bee Hong be restrained from trading in any counter on Bursa Malaysia for a period of five (5) years from the date so ordered by the court.

On 17 September 2020, the High Court recorded a consent judgment between the SC and Tan Bee Hong, and granted the reliefs sought by the SC.

Previously, Tan Bee Hong was charged at the Sessions Court for the same offence. The details of the criminal enforcement action can be found here:

https://www.sc.com.my/regulation/enforcement/actions/criminal-prosecution/updates-on-criminal-prosecution-in-2020

On 12 July 2019, a civil action was initiated against Tan for breach of section 188(3)(a) of the Capital Markets and Services Act 2007 (CMSA).

In respect of the acquisition of Hirotako Holdings Berhad (Hirotako) shares by Dato' Lim Lean Heng, the SC sought from Tan, among others, the following:

• payment of the sum of RM800,280.00 which is equivalent to 3 times of profit made by Dato' Lim Lean Heng
• a civil penalty of RM1,000,000.00
• that Tan be restrained from trading in any counter on Bursa Malaysia for a period of five (5) years from the date so ordered by the court.

As for the acquisition of Hirotako shares by Ng Ee Fang, the SC sought from Tan, among others, the following:

• payment of the sum of RM578,640.00 which is equivalent to 3 times of profit made by Ng Ee Fang
• a civil penalty of RM1,000,000.00
• that Tan be restrained from trading in any counter on Bursa Malaysia for a period of five (5) years from the date so ordered by the court

On 9 March 2020, the High Court recorded a consent judgment between SC and Tan and ordered among others:

• that there is a breach of section 188(3)(a) of the CMSA by Tan as acknowledged by Tan
• that Tan pays to the SC a sum equivalent to 1.5 times of the amount of profit made by Dato' Lim Lean Heng which amounts to RM400,140.00
• that Tan pays to the SC a sum equivalent to 1.5 times of the amount of profit made by Ng Ee Fang which amounts to RM289,320.00
• that Tan pays to the SC a civil penalty of RM200,000.00
• that Tan, whether by himself, his agent or otherwise howsoever, is restrained from trading in any counter on Bursa Malaysia for a period of five (5) years from the date of the consent judgement that Tan is barred from holding a directorship in a public listed company for a period of five (5) years from the date of the consent judgment.