Regulatory Settlements in 2020

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 RM150,00.00 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 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.

 

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