| No. | Nature of Offence | Offender(s) | Facts of Case | Date Charged |
|---|---|---|---|---|
| Criminal Prosecution Initiated – Persons Fined | ||||
| 1. | Causing to be submitted false information to SC in connection with a proposal | Chan Kok Suan | Chan Kok Suan, the Group Managing Director of Granasia Corporation Bhd, (“GCB”), was charged for causing to be submitted to SC false information, namely the revenue and profit after tax of GCB for the year ended 31 Dec 2002. This information was submitted in connection with GCB’s listing proposal on the Main Board of the Exchange. | Chan was charged on 9 February 2006. He pleaded guilty on 1 March 2010 and was sentenced to a fine of RM500,000.00 and in default of imprisonment 10 months. On 14 July 2011, the High Court Judge maintained the RM500,000.00 fine but increased the default of imprisonment from 10 months to 2 years. The prosecution has filed an appeal against the sentence to the Court of Appeal. |
| 2. | Authorising the furnishing of false statements to Bursa Malaysia Securities Berhad and causing the issuance of INIX Technologies Holdings Bhd’s prospectus containing false information. |
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Mok Chin Fan, Jimmy Tok Soon Guan & Cheong Kok Yai (Directors of Inix Technologies Holding Bhd) were charged with offences under s.122B(b)(bb) of the Securities Industry Act (SIA) for knowingly authorising the furnishing of false statements to Bursa in relation to Inix’s 4 quarterly reports for FYE 31 July 2006; i.e. 31 Oct 2005, 31 Jan 2006, 30 April 2006 & 31 July 2006. In addition they were charged under s.55(1)(a) of the Securities Commission Act (SCA) for causing the issuance of INIX Prospectus, which contained information that is false. Normah bt Sapar (Senior Account Executive of Inix) was charged with abetting Jimmy Tok in committing all the offences set out above. | On 29 September 2011, Mok Chin Fan (Mok), Cheong Kok Yai (Cheong) and Normah binti Sapar (Normah) pleaded guilty to all the offences they were charged with. Jimmy Tok Soon Guan pleaded guilty to all the offences he was charged with on 13 October 2011. Mok and Cheong were each fined RM125,000 (in default 1 year imprisonment) for the offence under s.55 of the SCA and fined RM50,000 (in default 6 months imprisonment) for each of the four offences under s.122B of the SIA bringing the total fine imposed on Mok and Cheong to RM325,000. Normah was fined RM150,000 (in default 1 year imprisonment) for the offence under s.55 of the SCA and fined RM50,000 (in default 6 months imprisonment) for each of the four offences under s.122B of the SIA bringing the total fine imposed on Normah to RM350,000. Jimmy the CEO and Executive Director of INIX, was fined RM400,000 (in default 2 year imprisonment) for the offence under s.55 of the SCA. For the 4 offences under s.122B of the SIA, he was fined RM200,000 (in default 18 months imprisonment) for the first and second charges respectively and RM150,000 (in default 12 months imprisonment) for the third and fourth charge respectively bringing the total fine imposed on Jimmy to RM1.1 million. |
| 3. | Failure to appear before the Investigating Officer of the Securities Commission to be examined orally in connection with the Securities Commission’s investigation of INIX Technologies Holdings Bhd’s affairs. |
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Chong Poh Ying, Helen Soon Shiau Yen, and Normah bt Sapar were charged under s.134(5) of the Securities Commission Act 1993 for failing to appear before the Investigating Officer of the Securities Commission in order to be examined orally in connection with the Securities Commission’s investigation into INIX’s affairs. | On 7 October 2011, Normah bte Sapar, Chong Poh Ying and Helen Soon Shiau Yen pleaded guilty to the charges under s.134(5)(a) of the SCA. Cheong and Helen were fined RM25,000 and RM20,000 respectively (in default 3 months imprisonment). Normah was fined a total of RM50,000 for the two charges under s.134(5)(a) of the SCA (in default 3 months imprisonment for each offence). |
| Outcome of Criminal Prosecution | ||||
| 1. | Engaging in an act that operated as a fraud on a public listed company Criminal breach of trust |
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2 charges were preferred against Ngu Tieng Ung, Director of Pancaran Ikrab Berhad (PIB) at the material time, for engaging in an act that operated as a fraud on PIB by utilising RM15.5 million of PIB’s funds to finance his purchase PIB shares when the money was not meant to be utilised for that purpose. Ngu was also charged for committing criminal breach of trust in respect of RM21.5 million of PIB’s funds. Ngu is also faced with an alternative charge to the 3 charges for committing criminal breach of trust involving RM37 million of PIB’s funds. Wong Jit Kiang was charged as an abettor to Ngu on all the aforesaid charges. | Ngu Tieng Ung and Wong Jit Kiang were charged on 5 May 2005. Wong Jit Kiang failed to attend court since 23 March 2009 and on 24 March 2010, the Sessions Court granted a discharge not amounting to an acquittal against him. A warrant of arrest is still pending against him. On 5 October 2010, Ngu pleaded guilty to the first and second charges under SIA 1983. The Sessions Court took into consideration the third charge and he was sentenced to 1 day imprisonment and RM1 million fines for each charge. Prosecution filed an appeal against the sentence to the High Court on 6 October 2010. On 26 August 2011, the High Court held that Ngu’s plea of guilt was a conditional plea and set aside the conviction and sentence. The case has been remitted to the Sessions Court for retrial. |
| Outcome of Criminal Prosecution – Persons Jailed | ||||
| 1. | Holding out as a fund manager without a license [s.15A(1) of the Securities Industry Act] | Phazaluddin bin Abu | Phazaluddin bin Abu was charged under s.15A(1) of the SIA 1983, where he was charged to have held himself out to be a fund manager without a license. He was alleged to have committed the offence through the internet website www.danafutures.com. The website, among others, stated that investments from the general public would be invested in securities. | Phazaluddin was charged on 29 February 2008. On 22 June 2010, the Sessions Court convicted him on the offence under s.15A(1) of the SIA and 3 other offences filed by Attorney’s General Chambers under s.4(1) of the AMLATFA. On 9 July 2010, the Sessions Court sentenced Phazaluddin to 4 years imprisonment for the offence under s.15A of the SIA and 2 years imprisonment for each of the other 3 offences under AMLATFA. The Court ordered for the sentences to run concurrently. Upon Phazaluddin’s application, the Sessions Court granted for a stay of execution on the imprisonment term pending appeal. He filed an appeal against the sentence to the High Court on 9 July 2010. On 5 May 2011, the High Court upheld the conviction and sentence of the Sessions Court and ordered for the jail sentence to run immediately. |
| 2. | Short selling | Lua Yik Hor | Lua, a dealer’s representative of Seagrott & Campbell Sdn Bhd, was charged on 22 May 1996 for short selling 960 lots of The North Borneo Timbers Berhad shares. | Lua was convicted on 10 November 2000 for all 30 offences of short selling. He was sentenced to 2 years imprisonment for each offence, to serve concurrently. On 27 February 2009, the High Court dismissed his appeal against convictions and sentences, and Prosecution’s appeal against sentence. The convictions and imprisonment terms are upheld. On 23 June 2011, the Court of Appeal dismissed his appeal and upheld the convictions and the sentences. |
| Outcome of Criminal Prosection – Persons Jailed & Fined | ||||
| 1. | Directly employing a scheme to defraud in connection with trading in futures and trading on behalf of another without a licence. | Raja Noor Asma Raja Harun | Raja Noor Asma was charged for employing a scheme to defraud investors of FX Capital Sdn Bhd and FX Consultant and trading on behalf of another without a licence. Investigation revealed that she collected over RM100 million from about 4,200 investors from all over Malaysia in the pretext that she was trading in future contracts on their behalf. | Raja Noor Asma Raja Harun was charged on 17 December 2008. She pleaded guilty on 21 December 2010 after the prosecution had called 18 out of 19 of their witnesses and was sentenced on 10 January 2011 to 5 years imprisonment and fined RM5 million (in default 6 month imprisonment). |
| 2. | Knowingly authorised the furnishing of a misleading statement to Bursa Malaysia Berhad relating to affairs of a listed corporation | Ooi Boon Leong | Ooi Boon Leong, the Director and substantial shareholder of Mems Technology Berhad, was charged for knowingly authorised the furnishing of a misleading statement to Bursa Malaysia Berhad. The misleading statement is in relation to Mems Technology Berhad group’s revenue for year ended 31 July 2007 contained in its condensed consolidated income statements for the 12 month period ended 31 July 2007. | Ooi Boon Leong was charged on 16 April 2009. He pleaded guilty on 25 February 2010 and was sentenced to a fine of RM300,000 (in default, 2 years imprisonment). On 11 January 2011, the High Court allowed Prosecution’s appeal against sentence and imposed 6 months imprisonment in addition to the fine of RM300,000 |
| 3. | Knowingly authorised the furnishing of a misleading statement to Bursa Malaysia Berhad relating to affairs of a listed corporation | Tan Yeow Teck | Tan Yeow Teck, the former Director and Chief Financial Officer of Mems Technology Berhad, was charged together with Ooi Boon Leong for knowingly authorised the furnishing of a misleading statement to Bursa Malaysia Berhad. The misleading statement is in relation to Mems Technology Berhad group’s revenue for year ended 31 July 2007 contained in its condensed consolidated income statements for the 12 month period ended 31 July 2007. | Tan Yeow Teck was charged on 16 April 2009. He pleaded guilty on 25 February 2010 and was sentenced to a fine of RM300,000 (in default, 2 years imprisonment). On 11 January 2011, the High Court allowed the Prosecution’s appeal against sentence and imposed 6 months imprisonment in addition to the fine of RM300,000. |
| 4. | Market manipulation |
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Charges preferred against them: Principal charge – in furtherance of their common intention for creating a misleading appearance as to the price of Suremax shares vide the transactions executed in the 153 accounts at 12 stockbrokers. Alternative charge – in furtherance of their common intention for creating a misleading appearance of active trading of Suremax shares vide the transactions in the 153 accounts at 12 stockbrokers that did not involve any change in beneficial ownership of the said shares, which had the effect of raising the price of Suremax shares. |
Wong Chee Kheong and Bun Lit Chun were charged on 25 October 2005. On 7 January 2011, Wong Chee Kheong and Bun Lit Chun were convicted by the Sessions Court on the Alternative Charge. On 12 January 2010, Wong Chee Kheong was sentenced to 24 months imprisonment and a fine of RM3 million (in default 6 months imprisonment), Bun Lit Chun was sentenced to 3 months imprisonment and a fine of RM2 million (in default 6 months imprisonment). |
| 5. | Making a false statement to Majlis Agama Islam [Section 87A(c) SIA] Criminal breach of trust [Section 409 PC] |
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 for criminal breach of trust (CBT) of RM2 million of Baitumal funds were misappropriated. | On 29 July 2002, the Sessions Court convicted Haron was convicted under s87A(c) SIA and sentenced him to a RM1 million fine (in default two years imprisonment) and three years imprisonment.
He was also convicted under s409 PC and sentenced to four years imprisonment and to two stokes of whipping. The imprisonment sentences are to be served concurrently. On 24 August 2005, the High Court affirmed the convictions and sentences. On 23 February 2011 the Court of Appeal affirmed the convictions and the sentences. |
| 6. | Abetted Haron Jambari in the making of false statement to Majlis Agama Islam [Section 87A(c) SIA read together with s40 and s109 PC] Abetting Haron Jambari to commit criminal breach of Trust [Section 409 read together with s109PC] Obtaining consideration in the capacity of public servant whilst performing duty [Section 165 Penal Code] |
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 for abetting Haron Jambari in committing criminal breach of RM2 million of Baitumal funds which were misappropriated. He was also charged for receiving RM130,000 in the discharge of his official duties in connection to the said PDB share transaction. | On 29 July 2002, the Sessions Court convicted him under s87A(c) SIA and sentenced him to a RM1 million fine (in default two years imprisonment) and three years imprisonment.
He was also convicted under s409 PC and sentenced to four years imprisonment and two strokes of whipping. He was also convicted under s165 PC and sentenced to two years imprisonment. However the Court of Appeal affirmed the conviction under s409 and also the four years imprisonment sentence but the whipping was set aside due to his age. |
| 7. | Engage in an act which operates as a fraud in connection with the purchase of securities Criminal breach of trust | Gordon Toh Chun Toh | Gordon Toh Chun Toh, the Director of Multi-code Electronics Industries (M) Berhad (Multi-code), was charged with engaging in an act which operated as a fraud on Multi-code, by utilising RM17.6 million of its funds to finance the purchase of 11.1 million Multi-code shares. Toh also faced an alternative charge of committing criminal breach of trust involving RM26 million of Multi-code’s funds. | Gordon Toh Chun Toh Gordon was charged on 13 March 2009. On 22 September 2011, the Sessions Court Judge convicted Gordon Toh Chun Toh of committing criminal breach of trust under section 409 of the Penal Code and sentenced him to 12 years imprisonment and also a fine of RM1 million, in default 2 years imprisonment. |
| 8. | Abetting Gordon Toh Chun Toh to engage in an act which operates as a fraud in connection with the purchase of securities Criminal breach of trust | Abul Hasan Bin Mohamed Rashid | Abul Hasan, the Director of Multi-code, was charged with abetting Gordon Toh Chun Toh in engaging in an act which operated as a fraud on Multi-code, in utilizing RM17.6 million of its funds to finance the purchase of 11.1 million Multi-code shares. Abul Hasan also faced an alternative charge of committing criminal breach of trust involving RM26 million of Multi-code’s funds. | Abul Hasan was charged on 13 March 2009. On 22 September 2011, the Sessions Court Judge convicted Abul Hasan of committing criminal breach of trust under section 409 of the Penal Code and sentenced him to 6 years imprisonment. |
| 9. | Knowingly authorized the furnishing of a misleading statement to Bursa Malaysia | Chin Keem Feung Shukri bin Sheikh Abdul Tawab | Chin and Shukri, the former Independent Non-Executive Director of Transmile Group Berhad (TGB) and also former members of Audit Committee of TGB, were charged with having knowingly authorised the furnishing of a misleading statement to Bursa Malaysia. The misleading statement was in relation to TGB’s revenue which was contained in TGB’s “Quarterly Report On Unaudited Consolidated Results For the Financial Yer Ended 31 December 2006.” | Chin and Shukri were charged on 14 November 2007. On 28 October 2011, the Sessions Court found Chin and Shukri guilty under section 122B(b)(bb) of the Securities Industry Act 1983 and they were both sentenced to 1 year imprisonment and fine of RM300,000 (in default 6 months imprisonment) |
| 10. | Knowingly authorised the furnishing of a misleading statement to Bursa Malaysia Berhad relating to affairs of a listed corporation | Ooi Boon Leong | Ooi Boon Leong, a former Director and substantial shareholder of Mems Technology Berhad, was charged with having knowingly authorised the furnishing of a misleading statement to Bursa Malaysia Berhad. The misleading statement was in relation to Mems Technology Berhad group’s revenue for the year ended 31 July 2007 contained in its condensed consolidated income statements for the 12 month period ended 31 July 2007. | Ooi Boon Leong was charged on 16 April 2009. He pleaded guilty on 25 February 2010 and was sentenced to a fine of RM300,000 (in default, 2 years imprisonment). On 11 January 2011, the High Court allowed the Prosecution’s appeal against sentence and imposed a 6 month imprisonment term in addition to the fine of RM300,000. On 4 November 2011, the Court of Appeal dismissed his appeal and upheld the sentence of the High Court. |
| 11. | Knowingly authorised the furnishing of a misleading statement to Bursa Malaysia Berhad relating to affairs of a listed corporation | Tan Yeow Teck | Tan Yeow Teck, a former Director and Chief Financial Officer of Mems Technology Berhad, was charged together with Ooi Boon Leong for knowingly authorised the furnishing of a misleading statement to Bursa Malaysia Berhad. The misleading statement was in relation to Mems Technology Berhad group’s revenue for year the ended 31 July 2007 contained in its condensed consolidated income statements for the 12 month period ended 31 July 2007. | Tan Yeow Teck was charged on 16 April 2009. He pleaded guilty on 25 February 2010 and was sentenced to a fine of RM300,000 (in default, 2 years imprisonment). On 11 January 2011, the High Court allowed the Prosecution’s appeal against sentence and imposed a 6 month imprisonment term in addition to the fine of RM300,000. On 4 November 2011, the Court of Appeal dismissed his appeal and upheld the sentence of the High Court. |
| Outcome of Criminal Prosecution – Persons Acquitted | ||||
| 1. | Submission of misleading information to SC in connection with a proposal | Lim Kim Ming Dato’ | Lim was deemed to have committed an offence as he was the Director of GP Ocean Food Berhad (“GP Ocean”) when GP Ocean submitted through Alliance Merchant Bank Berhad, misleading information to the SC contained in: Gropoint Fisheries Sdn. Bhd.’s ‘Directors’ Report and Audited Financial Statements 31 January 2006′ at page 7; and Gropoint Seafood Industries Sdn Bhd,’s ‘Directors’ Report and Audited Financial Statements 31 January 2006′ at page 7.Gropoint Fisheries Sdn. Bhd. and Gropoint Seafood Industries Sdn. Bhd. are subsidiaries of GP Ocean. The information was required to be submitted to the SC in connection with GP Ocean’s proposal for listing on the Main Board of Bursa Malaysia Securities Berhad. | Lim was charged on 22 May 2007. On 6 January 2011, Lim was acquitted and discharged by the Sessions Court. Prosecution has filed an appeal against the acquittal to the High Court. |
| 2. | Submission of misleading information to SC in connection with a proposal | Lim Kim Hai | Lim was deemed to have committed an offence as he was the Director of GP Ocean Food Berhad (“GP Ocean”) when GP Ocean submitted through Alliance Merchant Bank Berhad, misleading information to the SC contained in GP Ocean’s “Directors’ Report and Financial Statements 31 January 2006”. This information was required to be submitted to the SC in connection with GP Ocean’s proposal for listing on the Main Board of Bursa Malaysia Securities Berhad. | Lim was charged on 22 May 2007. On 6 January 2011, Lim was acquitted and discharged by the Sessions Court. Prosecution has filed an appeal against the acquittal to the High Court. |
| 3. | Submission of misleading information to SC in connection with a proposal | Tan Siok Wan | Tan was deemed to have committed an offence as she was the Director of GP Ocean Food Berhad (“GP Ocean”) when GP Ocean submitted through Alliance Merchant Bank Berhad, misleading information to the SC contained in a list titled “GP Ocean Food Berhad Group Top Ten Customer”. This information was required to be submitted to the SC in connection with GP Ocean’s proposal for listing on the Main Board of Bursa Malaysia Securities Berhad. | Tan was charged on 18 April 2007. On 6 January 2011, Tan was acquitted and discharged by the Sessions Court. Prosecution has filed an appeal against the acquittal to the High Court. |
| 4. | Submission of misleading information to SC in connection with a proposal | Lee Sin Teck | Lee was deemed to have committed an offence as he was the Director of GP Ocean Food Berhad (“GP Ocean”) when GP Ocean submitted through Alliance Merchant Bank Berhad, misleading information to the SC contained in GP Ocean’s “Directors’ Report and Financial Statements 31 January 2006”. This information was required to be submitted to the SC in connection with GP Ocean’s proposal for listing on the Main Board of Bursa Malaysia Securities Berhad. | Lee was charged on 18 April 2007. On 6 January 2011, Tan was acquitted and discharged by the Sessions Court. Prosecution has filed an appeal against the acquittal to the High Court. |
| 5. | Defrauding a stockbroking company | Ng Wu Hong | Ng, the CEO of Sarawak Securities Sdn Bhd (SSSB), was charged for using a scheme to defraud SSSB by increasing the margin equity in the margin accounts in SSSB by creating false collaterals using ‘phantom shares’. The false collaterals had caused SSSB to suffer an exposure of RM36.4 million. | Ng was convicted and sentenced to 2 years imprisonment by the Sessions Court on 8 November 2002.
On appeal to the High Court on 14 February 2007 the conviction was overturned and Ng was acquitted and discharged. At the Court of Appeal, the Prosecution’s appeal was struck out on 9 February 2011 as the notice of hearing could not be served on Ngu for the past 3 occasions. |
| Kho Cheng Wei | Kho, a margin clerk with SSSB, was charged for engaging in an act which operated as a fraud on SSSB by increasing the margin equity in the margin accounts in SSSB by creating false collaterals using ‘phantom shares’. Kho was also charged for making false entries into the records of SSSB. | Kho was convicted and sentenced to 8 months imprisonment by the Sessions Court on 8 November 2002.
On appeal to the High Court on 14 February 2007 the conviction was overturned and Kho was acquitted and discharged. At the Court of Appeal, the Prosecution’s appeal was struck out on 9 February 2011 as the notice of hearing could not be served on Kho for the past 3 occasions. |
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| Lee Sai Lan | Lee, a margin clerk with SSSB, was charged for engaging in an act which operated as a fraud upon SSSB by increasing the margin equity in the margin accounts in SSSB by creating false collaterals using ‘phantom shares’. Lee was also charged for making false entries into the records of SSSB. | Lee was acquitted and discharged by the Sessions Court on 8 November 2002. On appeal the High Court upheld the acquittal on 14 February 1007. At the Court of Appeal, the Prosecution’s appeal was struck out on 9 February 2011 as the notice of hearing could not be served on Lee for the past 3 occasions. |
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| 6. | Securities fraud [Section 87A SIA] Criminal breach of trust [Section 409 PC (alternative charge)] |
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Yip and Chung, directors of Cold Storage (Malaysia) Bhd (CSM), were charged for defrauding CSM by transferring RM185 million of CSM’s funds to pay for the purchase of CSM shares by Fulham Finance and Trade Ltd and Excoplex Sdn Bhd. Yip and Chung were both charged in the alternative for criminal breach of trust of the said RM185 million. | Yip and Chung were charged on 24 September 2004. On 11 March 2011, the Sessions Court ordered both accused persons to enter their defence on the alternative charge for CBT and acquitted and discharged them on the charge under section 87A SIA. On 20 June 2011, the Sessions Court acquitted and discharged both accused persons on the alternative charge. Prosecution has filed an appeal against the acquittal to the High Court. |
| Outcome of Criminal Prosecution – Persons Charged | ||||
| 1. | Holding out as a representative in respect of a regulated activity, namely trading in futures contracts, without holding a Capital Markets Services Representative’s Licence Carrying on a business in a regulated activity, namely trading in futures contracts, without holding a Capital Markets Services Licence | Zamani bin Hamdan | Zamani Hamdan was a director of Rantau Simfoni Sdn Bhd. He held himself out as a representative of an investment bank to trade in futures contracts.
Zamani was also charged in the alternative for carrying on the business of trading futures contracts without a license through his company, Rantau Simfoni. |
Zamani Hamdan was charged on 28 October 2011. |
| 2. | Issuance of securities without having prospectus registered by the Securities Commission [s.232(1) read together with s.367(1) of the CMSA] |
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Chong and Balachandran were charged under s.232(1) read together with s.367(1) of the CMSA 2007, and punishable under s.232(7) of the same Act. Both were directors of Bestino Group Berhad (Bestino), when Bestino issued 400 million redeemable preference shares without a prospectus in relation to the said redeemable preference shares having been registered by the Securities Commission under s.233 of the CMSA 2007. | Both Chong and Balachandran were charged on 21 April 2011. |
| 3. | With intent to deceive, furnished a false statement to Bursa Malaysia Berhad relating to affairs of a listed corporation [s.122B(a)(bb) read together with s.122(1) SIA 1983 & s.369(a)(B) CMSA] |
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Norhamzah, the Group Managing Director and one of the major shareholder of Kosmo Technology Industrial Berhad at the material time.
Mohd Azham, the Group Executive Director and one of the major shareholder of the Kosmo Technology Industrial Berhad. Lim Hai Loon, the Account Manager in Kosmo Technology Industrial Berhad is charged for abetting to commit the same offence. |
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