Civil Action in 2021
No. Breach Defendant(s) Brief Facts of the Case Outcome
1. Insider Trading Ewe Lay Peng

On 9 April 2021, a civil action was filed against Ewe Lay Peng for breaches of the insider trading provisions under the Capital Markets and Services Act 2007 (CMSA) in respect of the takeover of PacificMas Berhad by OCBC Capital (Malaysia) Sdn Bhd.

The SC sought from Ewe Lay Peng among others, the following:

  • A declaration that Ewe Lay Peng had contravened s188(2)(b) of the CMSA;
  • An order that Ewe Lay Peng pay the SC RM33,147.00;
  • An order that Ewe Lay Peng pay RM350,000 in civil penalty;
  • Costs of RM30,000; and
  • Interest.

On 24 May 2021, the Kuala Lumpur Sessions Court recorded a consent judgment between the SC and Ewe Lay Peng and ordered among others:

  • A declaration that Ewe Lay Peng had contravened s188(2)(b) of the CMSA;
  • An order that Ewe Lay Peng pay the SC RM33,147.00;
  • An order that Ewe Lay Peng pay RM350,000 in civil penalty;
  • Costs of RM20,000; and
  • Interest.
2. Insider Trading

Chang Kee Soon

On 10 June 2020, a civil action was initiated against Chang Kee Soon for breach of section 188(2)(a) 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 Chang 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.

On 5 May 2021, the High Court recorded a consent judgment between the SC and Chang Kee Soon and ordered among others:

  • A declaration that Chang Kee Soon breached s188(2)(a) of the CMSA;
  • An order that Chang Kee Soon pay the SC RM1,198,702.83 in 12 monthly instalments with 5% interest rate per annum;
  • An order that Chang Kee Soon pays RM150,000 in civil penalty;
  • that Chang Kee Soon be restrained from trading in any counter on Bursa Malaysia for a period of three (3) years from the date so ordered by the court; and
  • Costs.
3. Insider Trading Dato’ Lim Kim Chuan, Tay Hup Choon & Theng Boon Cheng

On 26 March 2021, a civil action was filed against 3 individuals for breaches of the insider trading provisions under the Capital Markets and Services Act 2007 (CMSA) in respect of the acquisition of M3Nergy Berhad (M3). The SC sought from Dato’ Lim Kim Chuan (KC Lim), Tay Hup Choon (Tay HC) and Theng Boon Cheng (Theng BC)  among others, the following:

  • A declaration that Lim Kim Chuan breached s188 of the CMSA;
  • A declaration that Tay Hup Choon and Theng Boon Cheng breached s188(2)(a) of the CMSA;
  • An order that KC Lim, Tay HC and Theng BC jointly and severally pay the SC RM383,173.59;
  • An order that KC Lim pays RM1,000,000 in civil penalty;
  • An order that Tay HC & Theng BC pays RM300,000 in civil penalty respectively;
  • An order that KC Lim, Tay HC and Theng BC barred from becoming a Chief Executive Officer or Director in any public listed company and/or subsidiary of any public listed company for a period of 8 years;
  • An order that KC Lim, Tay HC and Theng BC barred from being involved in the management in any public listed company and/or subsidiary of any public listed company for a period of 8 years;
  • Injunction to restrain KC Lim, Tay HC and Theng BC or their agents from trading in any counter on Bursa Malaysia for a period of 8 years;
  • Costs of RM50,000 each; and
  • Interest.

On 28 April 2021, the High Court recorded a consent judgment between the SC and Dato’ Lim Kim Chuan, Tay Hup Choon & Theng Boon Cheng and ordered among others:

  • An order that Lim Kim Chuan breached s188 of the CMSA;
  • An order that Tay Hup Choon and Theng Boon Cheng breached s188(2)(a) of the CMSA;
  • An order that KC Lim, Tay HC and Theng BC jointly and severally pay the SC RM383,173.59;
  • An order that KC Lim pays RM1,000,000 in civil penalty;
  • An order that Tay HC & Theng BC pays RM300,000 in civil penalty respectively;
  • An order that KC Lim, Tay HC and Theng BC barred from becoming a Chief Executive Officer or Director in any public listed company and/or subsidiary of any public listed company for a period of 8 years;
  • An order that KC Lim, Tay HC and Theng BC barred from being involved in the management in any public listed company and/or subsidiary of any public listed company for a period of 8 years;
  • Injunction to restrain KC Lim, Tay HC and Theng BC or their agents from trading in any counter on Bursa Malaysia for a period of 8 years;
  • Costs of RM50,000 each;
  • That KC Lim, Tay HC and Theng BC pay the entire sum in 1 lump sum payment within 7 days of consent judgment entered; and
  • Interest.
4.
  • 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:

  • 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; 
  • Declared that RBTR acted in breach of its obligations as a holder of a fund manager licence and/or under the fund manager guidelines
  • Declared that all assets and properties of RBTR belong to EDI Scheme investors
  • Declared to lift the corporate veil, all assets and properties of LGT and LCI are lifted
  • Declared that all assets and properties of Isaac, Joseph and Nicholas belong to the EDI Scheme Investors
  • 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 
  • Interest
  • 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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