Regulatory Settlements in 2020

Regulatory Settlement with The Goldman Sachs Group, Inc
On 18 August 2020, The Goldman Sachs Group, Inc. (“GSG”) on behalf of amongst others, Goldman Sachs International, Goldman Sachs (Asia) LLC, Goldman Sachs Singapore Pte and Goldman Sachs (Malaysia) Sdn Bhd (collectively referred to as “the GSG entities”), entered into a global settlement with the Government of Malaysia (“GOM”) and 1Malaysia Development Berhad (“1MDB”) on all outstanding claims and actions in relation to the GSG’s entities’ involvement in the 1MDB matter for a cash payment of US$2,500,000,000.00 and asset recovery guarantee of US$1,400,000,000.00. In line with the global settlement entered into between GOM, 1MDB and GSG, the SC had also entered into an arrangement with GSG to settle all pending regulatory actions relating to or in connection with GSG’s entities’ dealings with 1MDB including the issuance of the 3 bonds by 1MDB entities which are the US$1,750,000,000 5.99% Notes, US$1,750,000,000 5.75% Notes and US$3,000,000,000 4.4% Notes. This settlement with the SC was entered on a without admission or denial of liability basis by GSG and the GSG entities. As part of the SC’s settlement terms, Goldman Sachs (Malaysia) Sdn Bhd provided an undertaking to the SC that it shall ensure that the company, its board of directors and key management shall not engage in any conduct that would render it not fit and proper throughout the remaining validity period of its Capital Markets and Services Licence.

Regulatory Settlement with The Goldman Sachs Group, Inc

On 18 August 2020, The Goldman Sachs Group, Inc. (“GSG”) on behalf of amongst others, Goldman Sachs International, Goldman Sachs (Asia) LLC, Goldman Sachs Singapore Pte and Goldman Sachs (Malaysia) Sdn Bhd (collectively referred to as “the GSG entities”), entered into a global settlement with the Government of Malaysia (“GOM”) and 1Malaysia Development Berhad (“1MDB”) on all outstanding claims and actions in relation to the GSG’s entities’ involvement in the 1MDB matter for a cash payment of US$2,500,000,000.00 and asset recovery guarantee of US$1,400,000,000.00.

In line with the global settlement entered into between GOM, 1MDB and GSG, the SC had also entered into an arrangement with GSG to settle all pending regulatory actions relating to or in connection with GSG’s entities’ dealings with 1MDB including the issuance of the 3 bonds by 1MDB entities which are the US$1,750,000,000 5.99% Notes, US$1,750,000,000 5.75% Notes and US$3,000,000,000 4.4% Notes. This settlement with the SC was entered on a without admission or denial of liability basis by GSG and the GSG entities.

As part of the SC’s settlement terms, Goldman Sachs (Malaysia) Sdn Bhd provided an undertaking to the SC that it shall ensure that the company, its board of directors and key management shall not engage in any conduct that would render it not fit and proper throughout the remaining validity period of its Capital Markets and Services Licence.

Regulatory Settlement with Tan Chuan Hock
On 16.6.2020, Tan Chuan Hock (“Tan”) entered into a regulatory settlement agreement with the SC when he agreed to settle a claim that the SC was proposing to institute against him in respect of the insider trading of HPI Resources Berhad (HPI) shares while in possession of inside information pertaining to the acquisition of HPI by Oji Paper Co. Ltd as announced by HPI on 15.6.2011. Tan had allegedly acquired 250,000 shares in HPI between 27.1.2011 and 14.3.2011, contrary to section 188(2) of the Capital Market and Services Act 2007. The settlement was reached following a letter of demand sent by the SC pursuant to its civil enforcement powers under the securities laws. Based on the following terms and conditions, in that Tan is: to pay SC the sum of RM1,250,995.50 which is equivalent to three times the difference between the price at which he acquired the shares and the price at which they would have been likely to have been acquired at the time of acquisition, if the information had been generally available (12 monthly instalments); to resign from all directorships in public listed companies in Bursa Malaysia within fourteen (14) days from the date of Settlement Agreement and undertake not to become a Chief Executive officer or director or to be involved in the management, whether directly or indirectly, of any public listed company in Bursa Malaysia for a period of five (5) years from the date of Settlement Agreement; and to provide witness testimony for SC (should the need arise and if requested) in proceedings against individuals who purchased HPI shares during the period from November 2010 until March 2011; This settlement is made without admission or denial of liability

Regulatory Settlement with Tan Chuan Hock

On 16.6.2020, Tan Chuan Hock (“Tan”) entered into a regulatory settlement agreement with the SC when he agreed to settle a claim that the SC was proposing to institute against him in respect of the insider trading of HPI Resources Berhad (HPI) shares while in possession of inside information pertaining to the acquisition of HPI by Oji Paper Co. Ltd as announced by HPI on 15.6.2011.

Tan had allegedly acquired 250,000 shares in HPI between 27.1.2011 and 14.3.2011, contrary to section 188(2) of the Capital Market and Services Act 2007.

The settlement was reached following a letter of demand sent by the SC pursuant to its civil enforcement powers under the securities laws. Based on the following terms and conditions, in that Tan is:

to pay SC the sum of RM1,250,995.50 which is equivalent to three times the difference between the price at which he acquired the shares and the price at which they would have been likely to have been acquired at the time of acquisition, if the information had been generally available (12 monthly instalments);
to resign from all directorships in public listed companies in Bursa Malaysia within fourteen (14) days from the date of Settlement Agreement and undertake not to become a Chief Executive officer or director or to be involved in the management, whether directly or indirectly, of any public listed company in Bursa Malaysia for a period of five (5) years from the date of Settlement Agreement; and
to provide witness testimony for SC (should the need arise and if requested) in proceedings against individuals who purchased HPI shares during the period from November 2010 until March 2011;
This settlement is made without admission or denial of liability

Regulatory Settlement with Chan Chor Ngiak
On 20 May 2020, Dato’ Albert Chan Chor Ngiak (“Dato’ Albert Chan”) entered into a regulatory settlement agreement with the SC when he agreed to settle a claim that the SC was proposing to institute against him in respect of the insider trading of HPI Resources Berhad (HPI) shares while in possession of inside information pertaining to the acquisition of HPI by Oji Paper Co. Ltd as announced by HPI on 15 June 2011. Dato’ Albert Chan had allegedly acquired 31,000 shares in HPI between 26 November 2010 and 24 February 2011, contrary to section 188(2) of the Capital Market and Services Act 2007. The settlement was reached following a letter of demand sent by the SC pursuant to its civil enforcement powers under the securities laws. Based on the following terms and conditions, in that Dato’ Albert Chan is: to pay SC the sum of RM182,610.00 which is equivalent to three times the difference between the price at which he acquired the shares and the price at which they would have been likely to have been acquired at the time of acquisition, if the information had been generally available; to cease trading in any shares and securities of any public listed companies in Bursa Malaysia for a period of one (1) year from the date of the Settlement Agreement dated 15 May 2020 including and not limited to existing and future shares and securities held and/or to be held in your name directly and indirectly under any entities, companies, organisations, agencies, and/or held by any of his agents, employees, affiliates in any manner whatsoever; and is to provide witness testimony for SC (should the need arise and if requested) in proceedings against individuals who purchased HPI shares during the period from November 2010 until March 2011; This settlement is made without admission or denial of liability.

Regulatory Settlement with Chan Chor Ngiak

On 20 May 2020, Dato’ Albert Chan Chor Ngiak (“Dato’ Albert Chan”) entered into a regulatory settlement agreement with the SC when he agreed to settle a claim that the SC was proposing to institute against him in respect of the insider trading of HPI Resources Berhad (HPI) shares while in possession of inside information pertaining to the acquisition of HPI by Oji Paper Co. Ltd as announced by HPI on 15 June 2011.

Dato’ Albert Chan had allegedly acquired 31,000 shares in HPI between 26 November 2010 and 24 February 2011, contrary to section 188(2) of the Capital Market and Services Act 2007.

The settlement was reached following a letter of demand sent by the SC pursuant to its civil enforcement powers under the securities laws. Based on the following terms and conditions, in that Dato’ Albert Chan is:

to pay SC the sum of RM182,610.00 which is equivalent to three times the difference between the price at which he acquired the shares and the price at which they would have been likely to have been acquired at the time of acquisition, if the information had been generally available;
to cease trading in any shares and securities of any public listed companies in Bursa Malaysia for a period of one (1) year from the date of the Settlement Agreement dated 15 May 2020 including and not limited to existing and future shares and securities held and/or to be held in your name directly and indirectly under any entities, companies, organisations, agencies, and/or held by any of his agents, employees, affiliates in any manner whatsoever; and
is to provide witness testimony for SC (should the need arise and if requested) in proceedings against individuals who purchased HPI shares during the period from November 2010 until March 2011;
This settlement is made without admission or denial of liability.

Regulatory Settlement with Dato' Gan Eng Kwong, Datin Irene Tan, Gricia Gan Mei Hoong, Thong Swe Chong, Yong Yoke Leng, Chan Chong Cheat @ Chan Chong Kiat, Chong Swee Choon, Lok Wen Huei and Lee Pok Mun
On 14 April 2020, nine individuals entered into a regulatory settlement agreement with the SC in the sum of RM6,214,872.79 when they agreed to settle a claim that the SC was proposing to institute against them in respect of manipulation of Reliance Pacific Berhad (RPB) between 3 October 2006 to 31 October 2007, contrary to section 84(1) of the Securities Industry Act 1983 and section 175 of the Capital Market and Services Act 2007. The individuals involved in the alleged manipulation were: Dato' Gan Eng Kwong Datin Irene Tan Gricia Gan Mei Hoong Thong Swe Chong Yong Yoke Leng Chan Chong Cheat @ Chan Chong Kiat Chong Swee Choon Lok Wen Huei Lee Pok Mun The settlement was reached following a letter of demand sent by the SC pursuant to its civil enforcement powers under the securities laws. To avoid delay and expense of protracted litigation, it is agreed that parties have reached a full and final settlement of the civil claim that SC has against them based on the following terms and conditions: that all individuals are barred from holding office in any public-listed companies for a period of five years. that all individuals are barred from trading in the capital market for a period of five years and all shares currently held by them must be disposed off within four weeks from the regulatory settlement agreement date.

Regulatory Settlement with Dato' Gan Eng Kwong, Datin Irene Tan, Gricia Gan Mei Hoong, Thong Swe Chong, Yong Yoke Leng, Chan Chong Cheat @ Chan Chong Kiat, Chong Swee Choon, Lok Wen Huei and Lee Pok Mun

On 14 April 2020, nine individuals entered into a regulatory settlement agreement with the SC in the sum of RM6,214,872.79 when they agreed to settle a claim that the SC was proposing to institute against them in respect of manipulation of Reliance Pacific Berhad (RPB) between 3 October 2006 to 31 October 2007, contrary to section 84(1) of the Securities Industry Act 1983 and section 175 of the Capital Market and Services Act 2007. The individuals involved in the alleged manipulation were:

Dato' Gan Eng Kwong
Datin Irene Tan
Gricia Gan Mei Hoong
Thong Swe Chong
Yong Yoke Leng
Chan Chong Cheat @ Chan Chong Kiat
Chong Swee Choon
Lok Wen Huei
Lee Pok Mun

The settlement was reached following a letter of demand sent by the SC pursuant to its civil enforcement powers under the securities laws. To avoid delay and expense of protracted litigation, it is agreed that parties have reached a full and final settlement of the civil claim that SC has against them based on the following terms and conditions:

that all individuals are barred from holding office in any public-listed companies for a period of five years.
that all individuals are barred from trading in the capital market for a period of five years and all shares currently held by them must be disposed off within four weeks from the regulatory settlement agreement date.

Regulatory Settlement with Lim Beng Guan
On 25 February 2020, Lim Beng Guan entered into a regulatory settlement with the SC when he agreed to settle a claim that the SC was proposing to institute against him in respect of manipulation of Reliance Pacific Berhad (RPB). The action was in relation to Lim Beng Guan's participation in creating a false and misleading appearance of active trading in RPB shares. To avoid delay and expense of protracted litigation, it is agreed that all parties have reached a full and final settlement of the civil claim that SC has against Lim Beng Guan based on the term and condition that Lim Beng Guan pays SC the sum of RM150,000.00 constituting the commission made in the process of the abovementioned contravention.

Regulatory Settlement with Lim Beng Guan

On 25 February 2020, Lim Beng Guan entered into a regulatory settlement with the SC when he agreed to settle a claim that the SC was proposing to institute against him in respect of manipulation of Reliance Pacific Berhad (RPB). The action was in relation to Lim Beng Guan's participation in creating a false and misleading appearance of active trading in RPB shares.

To avoid delay and expense of protracted litigation, it is agreed that all parties have reached a full and final settlement of the civil claim that SC has against Lim Beng Guan based on the term and condition that Lim Beng Guan pays SC the sum of RM150,000.00 constituting the commission made in the process of the abovementioned contravention.

Regulatory Settlement with Tan Young Tat, Soon Boon Hong & Cheah Yau Cheong
On 3 March 2020, Tan Young Tat entered into a regulatory settlement with the SC when he agreed to settle a claim that the SC was proposing to institute against him in respect of insider trading of shares in DXN Holdings Berhad (DXN). While in possession of inside information pertaining to the privatization exercise of DXN at the material time, Tan Young Tat had allegedly: acquired 1,291,900 shares in DXN Holdings Berhad between 18 July 2011 and 5 September 2011, contrary to section 188(2)(a) of the Capital Market and Services Act 2007 (CMSA); procured Soon Boon Hong to acquire 358,700 DXN shares between 18 July 2011 to 5 September 2011, contrary to section 188(2)(b) of the CMSA; and procured Cheah Yau Cheong to acquire 598,000 DXN shares between 18 July 2011 to 5 September 2011, contrary to section 188(2)(b) of the CMSA. Earlier, on 22 January 2020, Soon Boon Hong and Cheah Yau Cheong had also entered into a regulatory settlement with the SC when they agreed to settle the respective claims that the SC was proposing to institute against them in relation to the procurement of the said shares, pursuant to section 201(5) of the CMSA. To avoid delay and expense of protracted litigation, it is agreed that parties have reached a full and final settlement of the civil claim that SC has against them based on the following terms and conditions: that Tan Young Tat pay SC the sum of RM2,429,408.04 which is equivalent to three times the difference between the price at which he acquired and procured the shares and the price at which they would have been likely to have been acquired at the time of the acquisition, if the information had been generally available; that Soon Boon Hong pay SC the sum of RM413,151.51 which is equivalent to three times the difference between the price at which the shares were procured and the price at which they would have been likely to have been acquired at the time of the acquisition, if the information had been generally available; that Cheah Yau Cheong pay SC the sum of RM574,145.25 which is equivalent to three times the difference between the price at which the shares were procured and the price at which they would have been likely to have been acquired at the time of the acquisition, if the information had been generally available; and the settlements were made without admission or denial of liability.

Regulatory Settlement with Tan Young Tat, Soon Boon Hong & Cheah Yau Cheong

On 3 March 2020, Tan Young Tat entered into a regulatory settlement with the SC when he agreed to settle a claim that the SC was proposing to institute against him in respect of insider trading of shares in DXN Holdings Berhad (DXN). While in possession of inside information pertaining to the privatization exercise of DXN at the material time, Tan Young Tat had allegedly:

acquired 1,291,900 shares in DXN Holdings Berhad between 18 July 2011 and 5 September 2011, contrary to section 188(2)(a) of the Capital Market and Services Act 2007 (CMSA);
procured Soon Boon Hong to acquire 358,700 DXN shares between 18 July 2011 to 5 September 2011, contrary to section 188(2)(b) of the CMSA; and
procured Cheah Yau Cheong to acquire 598,000 DXN shares between 18 July 2011 to 5 September 2011, contrary to section 188(2)(b) of the CMSA.

Earlier, on 22 January 2020, Soon Boon Hong and Cheah Yau Cheong had also entered into a regulatory settlement with the SC when they agreed to settle the respective claims that the SC was proposing to institute against them in relation to the procurement of the said shares, pursuant to section 201(5) of the CMSA.

To avoid delay and expense of protracted litigation, it is agreed that parties have reached a full and final settlement of the civil claim that SC has against them based on the following terms and conditions:

that Tan Young Tat pay SC the sum of RM2,429,408.04 which is equivalent to three times the difference between the price at which he acquired and procured the shares and the price at which they would have been likely to have been acquired at the time of the acquisition, if the information had been generally available;
that Soon Boon Hong pay SC the sum of RM413,151.51 which is equivalent to three times the difference between the price at which the shares were procured and the price at which they would have been likely to have been acquired at the time of the acquisition, if the information had been generally available;
that Cheah Yau Cheong pay SC the sum of RM574,145.25 which is equivalent to three times the difference between the price at which the shares were procured and the price at which they would have been likely to have been acquired at the time of the acquisition, if the information had been generally available; and
the settlements were made without admission or denial of liability.

Regulatory Settlement with Lee Kean Wei, Yap Soon Leong & Yap Maow Jun
On 17 February 2020, the following individuals entered into a regulatory settlement with the SC when they agreed to settle a claim that the SC was proposing to institute against them in respect of insider trading of shares in DXN Holdings Berhad (DXN): Lee Kean Wei for communicating inside information pertaining to the privatization exercise of DXN at the material time contrary to section 188(3) of the Capital Market and Services Act 2007 (CMSA) to one Yap Soon Leong and one Yap Maow Jun who had thereafter acquired shares in DXN. Yap Soon Leong for acquiring 230,000 DXN shares between 18 August 2011 and 19 August 2011 through the account of Fairfield Worldwide Consultants Corporation while in possession of inside information contrary to section 188(2)(a) of the CMSA. Yap Soon Leong and Yap Maow Jun for acquiring 314,600 DXN shares between 15 August 2011 and 18 August 2011 through the account of Blue Diamond Enterprise Worldwide Limited while in possession of inside information contrary to section 188(2)(a) of the CMSA. To avoid delay and expense of protracted litigation, it is agreed that all parties have reached a full and final settlement of the civil claim that SC has against them based them based on the following terms and conditions: That all three of them jointly pay SC the sum of RM740,712.00 which is equivalent to two times the difference between the price at which Yap Soon Leong and Yap Maow Jun acquired the shares and the price at which they would have been likely to have been acquired/disposed at the time of the acquisition/disposal, if the information had been generally available. The settlement was made without admission or denial of liability.

Regulatory Settlement with Lee Kean Wei, Yap Soon Leong & Yap Maow Jun

On 17 February 2020, the following individuals entered into a regulatory settlement with the SC when they agreed to settle a claim that the SC was proposing to institute against them in respect of insider trading of shares in DXN Holdings Berhad (DXN):

Lee Kean Wei for communicating inside information pertaining to the privatization exercise of DXN at the material time contrary to section 188(3) of the Capital Market and Services Act 2007 (CMSA) to one Yap Soon Leong and one Yap Maow Jun who had thereafter acquired shares in DXN.
Yap Soon Leong for acquiring 230,000 DXN shares between 18 August 2011 and 19 August 2011 through the account of Fairfield Worldwide Consultants Corporation while in possession of inside information contrary to section 188(2)(a) of the CMSA.
Yap Soon Leong and Yap Maow Jun for acquiring 314,600 DXN shares between 15 August 2011 and 18 August 2011 through the account of Blue Diamond Enterprise Worldwide Limited while in possession of inside information contrary to section 188(2)(a) of the CMSA.

To avoid delay and expense of protracted litigation, it is agreed that all parties have reached a full and final settlement of the civil claim that SC has against them based them based on the following terms and conditions:

That all three of them jointly pay SC the sum of RM740,712.00 which is equivalent to two times the difference between the price at which Yap Soon Leong and Yap Maow Jun acquired the shares and the price at which they would have been likely to have been acquired/disposed at the time of the acquisition/disposal, if the information had been generally available.
The settlement was made without admission or denial of liability.