Civil Action in 2022 - Civil Actions and Regulatory Settlements

Civil Action in 2022

No.	Nature of Offence	Defendant(s)	Brief Facts of the Case	Outcome
Outcome of Civil Action Taken
1.	Insider Trading	Goh Chin Liong (Goh) Leong Ah Chai (Leong)	On 26 May 2015, the SC filed a civil suit against Goh Chin Liong and Leong Ah Chai for breach of sections 188(2) and (3) of the Capital Markets and Services Act 2007 (CMSA). The SC sought, among others: A declaration that Goh Ching Liong had communicated the material non-public information to Leong Ah Chai who had thereafter disposed of the said WCT Berhad securities between 2 January 2009 and 5 January 2009; A declaration that Leong Ah Chai had engaged in insider trading in respect of WCT Berhad securities between 2 January 2009 and 5 January 2009; A payment of the sum of RM2,542,184.70 from each of the defendants, which is equivalent to three times the amount of RM847,394.90 being the difference between the price at which the securities had been disposed of by Leong Ah Chai 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 against Goh Chin Liong for the breach of section 188(3) of the CMSA; Civil penalty of RM1,000,000 against Leong Ah Chai for the breach of section 188(2) of the CMSA; An order that each of the defendants be barred from being a director of any public listed company for a period of 5 years; Interest; and Costs.	On 22 December 2022, after a full trial, the Kuala Lumpur High Court declared that the SC had successfully proven its claim against Goh and Leong. The High Court granted the reliefs sought by the SC as follows: Goh A declaration that Goh had breached sections 188(2)(b) and 188(3)(a) of the CMSA Payment of the sum of RM2,542,184.70; Civil penalty of RM 300,000.00; Interest at the rate of 5% per annum on the judgment sum; and Costs of RM 75,000.00 subject to allocator fee. Leong A declaration that Leong had breached section 188(2)(a) and 188(2)(b) of the CMSA Payment of the sum of RM2,542,184.70; Civil penalty of RM 300,000.00; Interest at the rate of 5% per annum on the judgment sum; and Costs of RM 75,000.00 subject to allocator fee.
2.	Use of manipulative and deceptive devices [Section 179 of CMSA] Causing wrongful loss to a listed corporation [Section 317A of CMSA] Attempts, abetments, conspiracies [Section 370 of CMSA]	Tey Por Yee Lim Chye Guan See Poh Yee Francis Tan Hock Leong Faizatul Ikmi binti Abdul Razak	On 29 November 2022, the SC filed a civil suit against the Defendants for breaches under sections 179, 317A and 370 of the CMSA. The SC obtained an interim injunction from the Kuala Lumpur High Court on 1 December 2022 to restrain Tey, Lim, See and Faizatul from dealing with the monies in their respective bank accounts. The SC did not seek an injunction against Tan as he is an undischarged bankrupt. The High Court further granted to the SC an ad interim injunction on 12 December 2022 and fixed 9 January 2023 for the Defendants’ response.	-
3.	Paragraph 7.01(1) of the SC’s Licensing Handbook read together with Section 64(1)(h)(iia) and/or (iv) of the Capital Markets and Services Act 2007 (“CMSA”); and Paragraph 7.02(2) of the SC’s Licensing Handbook read together with Paragraph 4.02 of the SC’s Licensing Handbook under the title of “Fit and proper requirements for directors, chief executive, managers and controllers of a CMSL applicant”	Apex Securities Berhad (formerly known as JF Apex Securities Berhad) Apex Equity Holdings Bhd. ACE Holdings Berhad Dato’ Calvin Choong Chee Meng Dato’ Celine Leong Wai Leng Lim Kok Eng Annie Chang Ai Nee Woon Wai En Lee Siow Hong Kevin Wong Zhen Fai Chang Min De Leong Kok Hoong Lim Huey Hean	On 29 November 2022, the SC filed a civil action against the Defendants whereby the SC is seeking amongst others: *Declaratory order/reliefs* A declaration that Apex Securities Berhad has contravened the securities laws as ACE Holdings Berhad has become a controller of Apex Securities Berhad, when ACE Holdings Berhad is not a fit and proper person to become a controller of Apex Securities Berhad, where these are contraventions of:- (i) Paragraph 7.01(1) of the SC’s Licensing Handbook read together with Section 64(1)(h)(iia) and/or (iv) of the CMSA; and (ii)Paragraph 7.02(2) of the SC’s Licensing Handbook read together with Paragraph 4.02 of the SC’s Licensing Handbook under the title of “Fit and proper requirements for directors, chief executive, managers and controllers of a CMSL applicant” A declaration that ACE Holdings Berhad is a person who appears to have been knowingly involved in the contravention of the securities laws by Apex Securities; *Specific orders/reliefs* c. An order that ACE Holdings Berhad, its directors, agents, servants, nominees or otherwise, including the companies within the ACE Group and its directors, agents, servants, nominees or otherwise, shall remedy the contraventions of the securities laws by taking the following steps:- (i) Removing or causing to be removed the following individuals from the Board of Apex Equity Holdings Berhad:- Dato’ Calvin Choong Chee Meng; Dato’ Celine Leong Wai Leng; Lim Kok Eng; Lee Siow Hong; and Woon Wai En. (ii) Removing or causing to be removed the following individuals from the management of Apex Equity Holdings Berhad:- Ms. Annie Chang Ai Nee; Mr. Kevin Wong Zhen Fai; Mr. Chang Min De; and Mr. Leong Kok Hoong. (iii) Removing or causing to be removed Mr. Lim Huey Hean as the Head of Credit Management of Apex Securities Berhad; (iv) Refraining from appointing and/or causing to be appointed any directors on Apex Equity Holdings Berhad and Apex Securities Berhad; (v) Refraining from making and/or causing to be made, decisions in respect of the business and/or administration of Apex Securities Berhad and/or to give effect such decisions and/or causing them to be given effect to; (vi) Refraining from directly or indirectly being a controller of Apex Securities Berhad and/or any holder of a Capital Markets Services Licence. Further and/or in the alternative to the above:- d. An injunction to restrain ACE Holdings Berhad, its directors, agents, servants, nominees or otherwise, including the companies within the ACE Group and its directors, agents, servants, nominees or otherwise, from appointing and/or causing to be appointed any directors and/or management personnel on Apex Equity Holdings Berhad and Apex Securities Berhad; e. An injunction to restrain ACE Holdings Berhad, its directors, agents, servants, nominees or otherwise, including the companies within the ACE Group and its directors, agents, servants, nominees or otherwise, howsoever from making and/or causing to be made, decisions in respect of the business and/or administration of Apex Securities Berhad and/or to give effect such decisions and/or causing them to be given effect to; f. An injunction to restrain ACE Holdings Berhad and the companies within the ACE Group from directly or indirectly being a controller of Apex Securities Berhad and/or any holder of a Capital Markets Services Licence.
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 However, with respect to the SC’s claim against the 3rd Defendant Valentine Khoo, the High Court found that a case had not been made out against the 3rd Defendant Valentine Khoo and dismissed SC's claim. On 30 April 2021, the SC filed an appeal to the Court of Appeal against the dismissal of SC’s claim against Valentine Khoo by the High Court. On 28 September 2022, the Court of Appeal dismissed SC’s appeal with costs.
5.	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.
6.	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.
7.	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.
8.	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.
3.	Insider Trading	Dato' Ng Back Heang (Dato’ Ng)	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). This was in relation to the disposal of 16,500,000 Patimas Computers Berhad (Patimas) shares held in his account, between May and July 2012. The SC sought, among others, the following: A declaration that Dato' Ng has contravened section 188(2) 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 RM1,237,500 which is equivalent to three (3) times the amount of the loss avoided , i.e., RM412,500; A civil penalty of RM1,000,000; 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.	On 16 November 2022, after a full trial, the Kuala Lumpur High Court declared that the SC had successfully proven its claim against Dato’ Ng. The High Court granted the reliefs sought by the SC as follows: A declaration that Dato’ Ng has contravened Section 188(2)(a) of the CMSA; A payment of the sum of RM1,237,500 being an amount equal to three (3) times the losses avoided; Civil penalty of RM700,000; An order that Dato’ Ng be barred from being a director of any public listed company for a period of 5 years starting from 16 November 2022; Interest at the rate of 5% per annum on the judgment sum from the date of judgment to the date of full realization; and Costs of RM100,000.