Civil Action in 2021

No.

Breach

Defendants(s)

Facts of Case

Update

1.
  • Breach of the Guideline on Compliance Function for Fund Managers.
    [Section 360 CMSA]
  • Fraudulently inducing persons to deal in securities.
    [Section 87 (1) of the SIA and Section 178(1) of the CMSA]
  • Carrying out a regulated activity without a licence.
    [Section 15A SIA/Section 58 CMSA and Section 15B SIA and Section 59 of the CMSA]

  • RBTR Asset Management Bhd (RBTR)
  • Locke Guaranty Trust Limited, New Zealand (LGT)
  •  Locke Capital Investments Ltd, British Virgin Island (LCI)
  • Al Alim bin Mohd Ibrahim
  • Valentine Khoo
  • Isaac Paul Ratnam
  • Nicholas Chan Weng Sung
  • Joseph Lee Chee Hock

On 23 January 2013, the SC filed a civil action against RBTR Asset Management Bhd (RBTR) and seven other defendants for various breaches of the securities laws. The SC is seeking, among others:

  • An order that the defendants make restitution of RM13.35mil to the Euro Deposit Investment (EDI) scheme investors who had not been repaid their investments;
  • An order that the defendants’ assets be traced and paid over to the SC for purposes of compensating the EDI scheme investors;
  • An order that two of the defendants, Al Alim bin Mohd Ibrahim (Al Alim) and Valentine Khoo be barred from being a director of any public listed company for a period of 10 years;

At the material time, Al Alim and Valentine Khoo were directors of RBTR and holders of the SC’s Fund Manager’s Representative Licence.

On 30 March 2021, the Kuala Lumpur High Court declared in favour of the SC against RBTR Asset Management Berhad (RBTR), Locke Guaranty Trust Limited (LGT), Locke Capital Investments (BVI) Ltd (LCI), Isaac Paul Ratnam, Nicholas Chan Weng Sung & Joseph Lee Chee Hock. The High made the following orders:

  1. Allowed the Plaintiff’s claim only in respect of RBTR to make restitution to satisfy losses of all the EDI Scheme Investors have not been repaid pursuant to sections 354(9) and/or s360(1)(M) of the CMSA; 
  2. Declared that RBTR acted in breach of its obligations as a holder of a fund manager licence and/or under the fund manager guidelines
  3. Declared that all assets and properties of RBTR belong to EDI Scheme investors
  4. Declared to lift the corporate veil, all assets and properties of LGT and LCI are lifted
  5. Declared that all assets and properties of Isaac, Joseph and Nicholas belong to the EDI Scheme Investors
  6. Order that all assets and properties of each Defendants (RBTR, LGT, LCI, Isaac, Joseph & Nicholas) be traced and thereafter paid to the SC for the purpose of compensating the EDI scheme investors by way of restitution or otherwise 
  7. Interest
  8. That Isaac Paul Ratnam, Nicholas Chan Weng Sung and Joseph Lee Chee Hock to pay cost of RM350,000 to the SC.
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