Updates on Criminal Prosecution in 2003 - Criminal Prosecution

Updates on Criminal Prosecution in 2003

No.	Nature of Offence	Offender(s)	Facts of Case	Date Charged
Criminal Prosecution Initiated - Persons Charged
1.	Director who permitted the furnishing of false statement to the KLSE [Section 122B(b) SIA]	Peter Ling Ee Kong	Peter Ling, a director of Wembley Industries Holdings Bhd (WIHB) was charged for knowingly and willfully permitting the furnishing of a false statement to the KLSE in relation to WIHB’s affairs. The false statement was contained in WIHB’s announcement to KLSE dated 25 February 1998 which stated that none of the directors or substantial shareholders of WIHB have any interest, direct and/or indirect, in the disposal of its subsidiaries when in fact he had an indirect interest in it.	Peter Ling was charged on 31 October 2003.
2.	Spot commodity and index trading firms who cheated the public into investing in foreign- listed commodity/futures and indices [Section 3(1) FIA]	Lye Ek Seang	Lye was charged for operating and establishing an illegal futures market at a company called Ambang Pintar Sdn Bhd.	Lye was charged on 22 October 2003. The charge was withdrawn on 24 June 2004 following the payment of compound totaling RM500,000.
3.	Spot commodity and index trading firms who cheated the public into investing in foreign- listed commodity/futures and indices [Section 3(1) FIA]	Foong Seng Meng	Both Foong and Ahmad Wajdi were charged for operating an illegal futures market at a company called Delta Matrix Sdn Bhd.	Foong and Ahmad Wajdi were charged on 12 September 2003.
3.		Ahmad Wajdi Lee Abdullah		Foong and Ahmad Wajdi were charged on 12 September 2003.
4.	Submission of false information to the SC, failure to maintain trust account for client’s money and concealment of records to obstruct audit carried out by the SC [Section 122B(b)(cc) SIA] [Section 122D SIA] [Section 47C(1) SIA read together with Section 122C] Criminal breach of trust [Section 409 PC]	Muhamad Khalid Ismail	Muhamed Khalid, a director of Oasis Asset Management Sdn Bhd (Oasis) (formerly known as Corporate Eight Asset Management Sdn Bhd), was charged for the following: Submitting false statements to the SC in relation to the funds managed by Oasis; Concealing records of Oasis in relation to the investment made by Koperasi Angkatan Tentera Malaysia Bhd (KATMB) totaling RM45 million with the intent to obstruct an audit carried out by the SC; Failing to maintain a trust account for the investment received from KATMB; and Criminal breach of trust in connection with RM16.5 million of the investment received from KATMB.	Muhamad Khalid was charged on 2 September 2003.
5.	Illegal fund manager [Section 15B(b) SIA]	Anuar Abdul Aziz	Anuar carried out the functions of a fund manager’s representative for Corporate Eight Asset Management Sdn Bhd (now known as Oasis Asset Management Sdn Bhd) without a licence.	Anuar was charged on 2 September 2003.
6.	Persons who opened CDS accounts using different names and identity cards to facilitate multiple IPO share applications [Section 9(1) SICDA]	Gan Yew Chok	Gan used the identities of third parties to open numerous CDS accounts when in fact he was the beneficial owner of the account. The accounts were opened to facilitate Gan’s multiple IPO share applications.	Gan was charged on 30 April 2003.
7.	Irregular operation of client’s trust account [Section 47C(5) SIA read together with Section 122(1) SIA]	Ghazali Atan	Ghazali, a director of Metrowangsa Asset Management Sdn Bhd a licensed fund manager, was charged for utilising funds in the trust account of Lembaga Tabung Haji to pay Mimos Bhd.	Ghazali was charged on 12 March 2003.
8.	Irregular operation of client’s trust account [Section 47C(5) read together with Section 122C(c) SIA] Submission of misleading information to the SC [Section 122B(b)(cc) SIA]	Mohamed Abdul Wahab	Mohamed, a director of Metrowangsa Asset Management Sdn Bhd (MAM) (a licensed fund manager), was charged for utilising funds in the trust account of Lembaga Tabung Haji to pay Mimos Bhd. Mohamed was also charged for submitting misleading statement to the SC by excluding a portion of the investments of Lembaga Tabung Haji and Mimos Bhd from MAM’s semi-annual reports to the SC.	Mohamed was charged on 12 March 2003.
9.	Spot commodity and index trading firms who cheated the public into investing in foreign-listed commodity futures and indices [Section 3(1) FIA]	Siaw Pou Wui Tay Choon Way	Both Siaw and Tay were charged for operating an illegal futures market at a company called Empire Atlantic Sdn Bhd.	Siaw and Tay were charged on 10 February 2003.
No.	Nature of Offence	Offender(s)	Facts of Case	Punishment
Outcome of Criminal Prosecution – Persons Fined
1.	Spot commodity and index trading firms who cheated the public into investing in foreign- listed commodity futures and indices [Section 3(1) FIA]	Siaw Pou Wui Tay Choon Way	Both Siaw and Tay were charged for operating an illegal futures market at a company called Empire Atlantic Sdn. Bhd.	Siaw and Tay were charged on 10 February 2003. On 27 May 2003, Siaw was convicted by the Sessions Court and fined RM20,000. Prosecution filed an appeal against the sentence. On 8 October 2003, the High Court allowed Prosecution’s appeal and enhanced fine imposed on Siaw to RM100,000 (in default 6 months' imprisonment). Tay’s charge was taken into consideration in sentencing for his conviction for operating an illegal futures market at ATT Ventures Sdn Bhd. He was fined RM220,000.
2.	Illegal fund manager's representative [Section 15B(b) SIA]	Nublan Zaky Yusoff	Nublan carried out the functions of a fund manager's representative for Perdana Management and Consultantcy Sdn Bhd (now known as Perdana Technology Venture Sdn Bhd) without a licence.	Nublan was charged on 27 September 2002. Nublan pleaded guilty and was convicted on 23 September 2003. He was fined RM600,000 in default one year's imprisonment. He appealed against the sentence. The appellate court allowed his appeal and reduced the sentence to a RM240,000 fine (in default 9 months' imprisonment).
3.	Giving false information to the SC in connection with proposal submitted [Section 32B(1)(a) SCA] Failure to inform SC that information submitted earlier in connection with a corporate proposal may be misleading [Section 122B(b) SIA]	Gan Kok Beng	Gan, a director of Ganad Corporation Bhd (Ganad), was charged for submitting false information to the SC, which was provided in Ganad’s audited accounts for two financial year ends, in connection with Ganad’s listing proposal. The turnover, trade debtors and profit before tax figures reflected in the audited accounts were inflated.	Gan was charged on 15 May 2001. He was convicted on 25 March 2003 for the offence of submitting false information and in sentencing; the court took into consideration the other outstanding offence of giving false statement, to which Gan had admitted. He was fined RM600,000 and in default six months' imprisonment. The fine was paid.
4.	Defrauding clients of an asset management company [Section 87A(a) SIA] Criminal breach of trust [Section 409 PC]	Wan Muhammad Hasni Wan Sulaiman	Wan Muhammad Hasni, the Executive Chairman of Abrar Global International Sdn Bhd (AGI), was charged on 24 July 1999, for engaging in an act that operated as a fraud on clients of Abrar Global Asset Management Sdn Bhd (AGAM), a wholly owned subsidiary of AGI, by causing the mis-utilisation of clients? funds totalling RM5 million that was meant for investment purposes. Wan Muhammad Hasni was also charged in the alternative for criminal breach of trust involving the RM5 million of client funds. In respect of this alternative charge, the Sessions Court found that there was no prima facie case made out against Wan Hasni at the end of the prosecution’s case.	Wan Muhammad Hasni was charged on 24 July 1999. Please refer to year 2006’s folder for the outcome of the appeal.
5.	Market manipulation [Section 84(1) SIA]	Puniyamurti a/l Perianan	Puniyamurti was charged for manipulating the price of Actacorp Holding Bhd warrants (Actacorp warrants) by actively purchasing the Actacorp warrants in September 1997 and December 1997. These purchases accounted for between 42.27% to 78.95% and 30.96% to 100% of the total daily purchases during the respective period and affected the price of the Actacorp warrants.	Puniyamurti was charged on 28 November 2002. On 5 June 2003, Puniyamurti was convicted and fined of RM3 million.
6.	Spot commodity and index trading firms who cheated the public into investing in foreign- listed commodity futures and indices [Section 3(1) FIA]	Tang Wai Kin Hwang Sheung Tat (both Chinese citizens from Hong Kong)	Tang and Hwang operated an illegal futures market at Twin Portfolio Sdn Bhd.	Tang and Hwang were charged on 3 May 2002. On 5 June 2003, Tang was convicted and in sentencing the court took into consideration two outstanding offences that were admitted by him. He was fined RM300,000 (in default 6 months' imprisonment. Hwang was fined RM250,000 (in default 5 months' imprisonment).
6.		Tay Choon Way	Tay operated an illegal futures market at ATT Ventures Sdn Bhd.	Tay was charged on 22 May 2002. On 27 May 2003, Tay was convicted for operating an illegal futures market at ATT Ventures Sdn Bhd and his charge for operating an illegal futures market at Empire Atlantic Sdn Bhd was taken into consideration during sentencing. He was fined RM220,000.
Outcome of Criminal Prosecution – Persons Jailed
	Director who submitted false statement to the SC and KLSE [Section 32B(1)(a) SCA] Furnishing false statements to the stock exchange [Section 122B(b)(bb) SIA]	Lim Chai Hock	Lim, a director of Tat Sang Holdings Bhd (Tat Sang), knowingly authorised the furnishing of false statements to the KLSE in respect of Tat Sang’s annual accounts for the year ended 31 July 2000. The false statements relate to: Fixed assets balance that was inflated through the inclusion of fictitious invoices; Other debtors balance that was inflated through the inclusion of payments pursuant to fictitious agreements; and Revenue figure that was inflated through the inclusion of fictitious sales. Lim was also charged for authorising the furnishing of false statements to the KLSE in respect of Tat Sang's annual accounts for the year ended 31 July 2000. The false statements relate to: fixed assets balance that was inflated due to inclusion of fictitious invoices; other debtors balance that was inflated due to the inclusion of payments pursuant to fictitious agreements; and revenue figure that was inflated through the inclusion of fictitious sales.	Lim was charged on 12 December 2002. Lim pleaded guilty and was convicted. In sentencing, the Sessions Court took into consideration one outstanding offence relating to the submission of false information to the SC in respect of Tat Sang’s listing proposal that was admitted by him. Lim was sentenced to five years' imprisonment by the Sessions Court. On 19 December 2003, the High Court exercised its revisionary powers upon an application by Lim and reduced the custodial sentence to five months and imposed a monetary fine of RM200,000 (in default 2 months' imprisonment.

No record found.