Updates on Criminal Prosecution in 2002 - Criminal Prosecution

Updates on Criminal Prosecution in 2002

No.	Nature of Offence	Offender(s)	Facts of Case	Date Charged
Outcome of Criminal Prosecution - Persons Jailed
1.	Dishonest dealers who cheat investors	Haron Jambari	Haron, a dealer, made a false statement of a material fact to his client, Majlis Agama Islam Wilayah Persekutuan, relating to the purchase of Petronas Dagangan Bhd (PDB transaction) shares. Haron was also charged and convicted for criminal breach of trust (CBT) in connection with the PDB transaction where RM2 million of Baitumal funds were misappropriated.	Convicted and sentenced to three years' imprisonment and RM1 million fine (in default two years' imprisonment). Haron filed an appeal against conviction and sentence. The sentence is stayed pending appeal.
2.	Dishonest employees who cheat their employers in share transactions	Nik Aziz Nik Mohd Amin	Nik Aziz, an accountant in Majlis Agama Islam, abetted Haron Jambari in making the false statement to his employer on the PDB share transaction. Nik Aziz was also charged and convicted for CBT and corrupt practices in connection with the PDB transaction.	Convicted and sentenced to three years' imprisonment and fined RM1 million (in default two years' imprisonment). Nik filed an appeal against his conviction and sentence. The sentence is stayed pending appeal.
3.	Persons who defrauded stockbroking companies	Ng Wu Hong	Ng, the CEO of Sarawak Securities Sdn Bhd, was involved in a scheme to defraud Sarawak Securities by creating false collaterals in various margin accounts. The false collaterals were created for the purpose of making cash withdrawals, avoiding margin calls and absorbing purchases in various share trading accounts (among others). Ng's actions caused Sarawak Securites to suffer an exposure of RM44 million.	Convicted and sentenced to two years' imprisonment. Ng filed an appeal against his conviction and sentence. The sentence is stayed pending appeal.
3.	Persons who defrauded stockbroking companies	Kho Cheng Wei	Kho, a margin clerk, was personally involved in creating "phantom shares" to fictitiously increase the margin equity of various margin accounts in Sarawak Securities. Kho's actions caused Sarawak Securities to suffer a total exposure of RM199,699.	Convicted and sentenced to eight months' imprisonment. Kho appealed against his conviction and sentence. The sentence is stayed pending appeal.
Outcome of Criminal Prosecution - Persons Fined
1.	Persons who made false statements to the SC and the KLSE	Datuk Tiah Thee Kian	Datuk Tiah had furnished false statements to the KLSE in respect of his off-market dealings in shares of Omega Holdings Berhad. Datuk Tiah had falsely reported: that TA Securities had transacted 28,036,000 Omega shares at RM11.50 per share when in fact it was done at RM6.45 per share; and that TA Securities had transacted 7,010,000 Omega-A shares at RM9.80 per share when in fact it was done at RM6.45 per share.	Fine of RM3 million (in default three years imprisonment).
Persons Fined
4.	Persons who gave investment advice without an investment adviser's licence	Anuar Abdul Aziz	Anuar Abdul Aziz, an unlicensed investment adviser, had made investments recommendations to participants during an investment seminar.	Fine of RM150,000 (in default 12 months imprisonment).
5.	Unlicensed futures traders who cheat investors (Bucketing)	Lew Lee Yin	Lew, a director of North American Resources Consultant Sdn Bhd (NAREC), had personal knowledge of 22 bogus futures transactions. NAREC's investors were deceived into believing that their orders were actually transacted on the Hong Kong Futures Exchange, when in fact it was never the case.	Total fine of RM100,000.
6.	Shortselling	Yong Kon Fah @ Yong Kong Fah Mohd Tahir A. Rahman Chan Wan Kee Soon Kong Yiaw Ting Hsing Tong	These individuals were involved in selling shares which they did not own, an offence under the SIA.	Fine of between RM25,000 to RM105,000.
Warnings Issued
7.	Directors and financial advisers who allow the publication of false information to investors	Sinmah Resources Board of Directors: Datuk Abdul Razak Alias Fong Kok Yong Fong Ngan Teng Fong Chee Hiong @ Fong Chwee Nai Datuk Ng Peng Hong @ Ng Peng Hay Ng Cheu Kuan Baharom Abd Wahab	As an adviser to Sinmah Resources Bhd, Southern Investment Bank had failed to exercise due diligence in its review of Sinmah's abridged prospectus. As a result, a false and misleading statement was made to investors through the abridged prospectus. Sinmah's entire Board of Directors had also failed to exercise due diligence in the review of the company's abridged prospectus, which resulted in the publication of a false and misleading statement to investors in the said abridged prospectus.	Warning letter issued on 5 August 2002.
8.	Disclosure of false information to the Commission	Mohd Haniff Koslan	Mohd Haniff, a director of Insan Utility Bhd, had falsely declared in the listing proposal that he had graduated from Universiti Kebangsaan Malaysia in 1980 with a degree in business administration.	Warning letter issued on 27 March 2002.
8.	Disclosure of false information to the Commission	Rohani Mohd Shahir	In response to an enquiry by the Commission, Rohani had falsely disclosed information about the trading activities of ASNITA unit trust.	Warning letter issued on 17 June 2002.
9.	Unlawful issue and sale of securities by unit trust companies	Pacific Mutual Fund Berhad	Acting without the Commission's approval, Pacific Mutual Fund proceeded to increase the fund size of Pacific Dana Aman from its approved maximum of 200 million units to 219 million units without the Commission's approval.	Warning letter issued on 23 April 2002.
10.	Giving false statement to an investigating officer of the Commission	Dr Abdul Aziz Abu Hassan	Dr Abdul Aziz gave a false statement to an investigating officer during the course of an investigation by the Commission into a market manipulation case.	Warning letter issued on 29 March 2002.

No record found.