Civil Action in 2022
No. Nature of Offence Defendant(s) Brief Facts of the Case Outcome
Outcome of Civil Action Taken
1.
  • Use of manipulative and deceptive devices [Section 179 of CMSA]
  • Causing wrongful loss to a listed corporation [Section 317A of CMSA]
  • Attempt, Abetment & Conspiracy [Section 370 of CMSA]
Datin Chan Chui Mei

On 26 September 2016, the SC filed a civil suit against Datin Chan Chui Mei for breaches under section 179, 317A and 370 of the CMSA.

After a full trial, on 17 December 2019, the High Court ruled in favour of the SC and granted the following orders:

  • A declaration that Datin Chan had contravened section 179, 317A and 370 of the CMSA;
  • A declaration that Datin Chan had contravened section 179, 317A and 370 of the CMSA;
  • Datin Chan to pay the SC a sum of RM11.54 million and that this sum be held by the SC on trust for Stone Master;
  • An account and inquiry of the sum of RM11.54 million and all profits earned by Datin Chan from this amount during the time  the fundswere deposited into her personal bank accounts;
  • That all sums awarded and to be paid to the SC by Datin Chan be vested in the SC pursuant to section 360(1) of the CMSA;
  • That Datin Chan be barred from being a director or being involved in the management, whether directly or indirectly, of any public company for a term of 5 years from the date of the High Court judgment;
  • That Datin Chan pays the SC civil penalty of RM1 million within 30 days of the High Court judgment;
  • Datin Chan to pay costs of RM150,000 to the SC; and
  • Datin Chan shall pay interest of 5% per annum on all sums awarded to the SC from the date of the High Court judgment until full settlement.

Datin Chan filed an appeal to the Court of Appeal against the decision of the High Court and the appeal was unanimously dismissed on 3 March 2022.

She then subsequently applied for leave to appeal the Court of Appeal’s decision to the Federal Court.

On 7 September 2022, the Federal Court unanimously dismissed Datin Chan’s leave to appeal to the Federal Court.
2.
  • Insider trading

Dato’ Sreesanthan a/l Eliathamby

On 4 November 2020, after a full trial, the Kuala Lumpur High Court allowed the SC’s claim against Dato’ Sreesanthan for insider trading of Worldwide Holdings Berhad shares.

Consequently, the High Court granted the reliefs sought by the SC which include:

  • 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.

 

Aggrieved by the said decision, Dato’ Sreesanthan filed an appeal to the Court of Appeal.

 

On 5 September 2022, the Court of Appeal unanimously affirmed the High Court’s finding that Dato’ Sreesanthan had engaged in insider trading of Worldwide Holdings Berhad shares and upheld the reliefs granted by the High Court.

In addition, the Court of Appeal awarded the SC costs of RM50,000.  

3. 
  • 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.

On 23 August 2022, the High Court recorded a consent judgment between the SC and Lee Swee Eng and ordered among others:

  • a declaration that Lee Swee Eng had breached Section 188(2) of the CMSA 2007;
  • that Lee Swee Eng pays SC a sum of RM3,667,858.00, being the difference between the price at which KNM shares were disposed of and the price at which the said shares would have been likely to have been disposed of at the time of the disposal, if the inside information had been generally made available;
  • that Lee Swee Eng pays SC a civil penalty of RM500,000.00.
  • that Lee Swee Eng be barred from being a director of any public-listed company for 5 years (with effect from 23 August 2022);
  • that Lee Swee Eng be restrained from dealing in securities for 5 years (with effect from 23 August 2022); and
  • that Lee Swee Eng pays SC costs of RM100,000.00.
4.
  • Use of manipulative and deceptive devices [Section 179 of CMSA]
  • Causing wrongful loss to a listed corporation [Section 317A of CMSA]
  • Attempt, Abetment & Conspiracy [Section 370 of CMSA]

Datin Chan Chui Mei

On 26 September 2016, the SC filed a civil suit against Datin Chan Chui Mei for breaches under section 179, 317A and 370 of the CMSA.

After a full trial, the High Court had on 17 December 2019 granted the following orders:
  • A declaration that Datin Chan had contravened section 179, 317A and 370 of the CMSA;
  • A declaration that Datin Chan had contravened section 179, 317A and 370 of the CMSA;
  • Datin Chan to pay the SC the sum of RM11.54 million and that this sum be held by the SC on trust for Stone Master;
  • An account and inquiry of the sum of RM11.54 million and all profits earned by Datin Chan of this amount from the time that it was deposited into her personal bank accounts;
  • That all sums awarded and to be paid to the SC by Datin Chan be vested in the SC pursuant to section 360(1) of the CMSA;
  • That Datin Chan be barred from being a director, be involved in the management, whether directly or indirectly, of any public company for a term of 5 years from the date of this judgment;
  • That Datin Chan pays the SC civil penalty of RM1,000,000.00 within 30 days of this judgment
  •  Datin Chan to pay costs of RM150,000 to the SC; and
  • Datin Chan shall pay interest of 5% per annum on all sums awarded to the SC from the date of this judgment until full settlement.


Datin Chan filed an appeal to the Court of Appeal against the decision of the High Court.

On 3 March 2022, the Court of Appeal dismissed Datin Chan’s appeal and affirmed the High Court’s decision.
No. Nature of Offence Offender(s) Brief Facts of the Case Outcome
Outcome of Civil Action Taken
1.  Insider trading

Dato' Raymond Yap Wee Hin (Dato’ Raymond Yap)

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).

This was in relation to the disposal of 43,823,600 Patimas Computers Berhad (Patimas) shares held in Law Siew Ngoh’s account, who was the former Managing Director of Patimas, between June and July 2012. Dato’ Raymond Yap was alleged to be the beneficial owner of the shares as he benefited directly or indirectly from the disposal of the said shares.

The SC sought, among others, the following:

  • A declaration that Dato' Raymond Yap has contravened section 188(2)(a) & (b) of the CMSA whilst in possession of material, non-public information relating to audit queries and issues regarding the suspicious transactions between Patimas and its top debtors;
  • Payment of the sum of RM3,286,770 which is equivalent to three (3) times the amount of the loss avoided, i.e. RM1,095,590 ;
  • A civil penalty of RM1,000,000;
  • 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.

On 7 April 2022, after a full trial, the Kuala Lumpur High Court declared that the SC had successfully proven its claim against Dato’ Raymond Yap. The High Court granted the reliefs sought by the SC as follows:

  • A declaration that Dato Raymond Yap has contravened Section 188(2)(a) & (b) of the CMSA;
  • A payment of the sum of RM3,286,770 being an amount equal to three times the losses avoided;
  • Civil penalty of RM1,000,000;
  • An order that Dato’s Raymond Yap be barred from being a Director of any public listed company for a period of 5 years starting from 7 April 2022;
  • Interest at the rate of 5% per annum on the judgement sum from the date of judgment to the date of full realization; and
  • Costs of RM100,000.
2. Insider Trading 

Francis Tan Hock Leong

On 11 October 2021, a civil action was initiated against Francis Tan Hock Leong (“Francis”) for insider trading, a breach under section 188(2) of the Capital Markets and Services Act 2007 (“CMSA”). The SC sought, among others, the following:

  • A declaration that Francis had breached section 188(2)(a) of the CMSA;
  • An Order that Francis pay the sum of RM1,135,665.00 to the SC, being an amount equal to three (3) times the difference between the price at which he had disposed of his shares in R&A Telecommunication Sdn Bhd (“R&A”) and the price they would have been likely to have been disposed of, if the Inside Information had been generally available;
  • An Order that Francis pay to the SC a civil penalty not exceeding RM1,000,000.00;
  • An Order that Francis be barred from being a Director of any public company for a period of ten (10) years from the date of the Order;
  • Interest; and
  • Costs.
 On 22 June 2022, the Kuala Lumpur High Court allowed the SC’s application for a Judgment in Default (“JID”) against Francis following his failure to enter a defence to the civil action. The court awarded all the orders sought by the SC in its statement of claim. In relation to the civil penalty, the SC was awarded RM1 million.
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