Updates on Criminal Prosecution in 2019
No. Nature of Offence Offender(s) Facts of Case Date Charged
Outcome of Criminal Trials & Appeals - Interlocutary Application
1.

Insider Trading

Sreesanthan a/l Eliathambhy

Sreesanthan was charged with seven counts of insider trading under section 188(2)(a) of the Capital Markets and Services Act (CMSA) and section 89E(2)(a) of the Securities Industry Act (SIA). He was alleged to have traded in the shares of four public listed companies while in possession of inside information relating to various corporate exercises, details of which are stated below:

    • Acquisition of Sime Darby Berhad’s shares while in possession of the proposed acquisition by Synergy Drive of companies within the Sime Darby, Guthrie and Golden Hope groups.
    • Acquisition of Maxis Communication Bhd’s shares while in possession of proposed privatisation of Maxis.
    • Acquisition of UEM World Berhad’s shares while in possession of the corporate restructuring exercise of the UEM group.
    • Acquisition of VADS Berhad’s shares while in possession of proposed privatisation of VADS.

Sreesanthan was charged on 20 July 2012 with seven counts of insider trading.

In September 2012, before the commencement of the trial, Sreesanthan filed an application under section 30 of the Courts of Judicature Act 1964 (“CJA”) to refer 10 constitutional questions to the High Court.

In December 2012, the Sessions Court allowed Sreesanthan’s application and granted a stay of proceedings.

In November 2013, the High Court dismissed the application on the basis that there was no merit in the application.

Sreesanthan filed an appeal to the Court of Appeal and in September 2014, the Court of Appeal referred 3 constitutional questions to the Federal Court without hearing the merits of the appeal.

In May 2015, the Federal Court remitted the case to the Court of Appeal to hear the merits of the case on the ground of lack of jurisdiction to hear a case referred by the Court of Appeal.

In September 2016, following the decision of Gan Boon Aun v Public Prosecutor [2016] 4 MLJ 265 where it was held that the High Court should not hear a reference under section 30 of the CJA, Sreesanthan filed an application to the Federal Court to rescind the order of the Federal Court in May 2015, to set aside the order of the High Court in November 2013 and other appropriate consequential directions.

In January 2017, the Federal Court allowed Sreesanthan’s application and ordered the matter to be remitted to the High Court to consider, if any, and state the question which in his/her opinion has arisen as to the effect of the provision of the constitution in the form of special case and transmit the same to the Federal Court for determination pursuant to section 84(3) and 84(4) of the CJA.

In June 2017, the High Court referred one constitutional question to the Federal Court for determination which is “Whether sections 128 and 134 of the SCA are inconsistent with Articles 5(1) and 8(1) of the Federal Constitution”. The High Court granted a stay of proceedings at the Sessions Court pending the decision of the Federal Court.

In March 2018, before hearing of the special case, the Prosecution had raised a preliminary objection that there was no constitutional question to be answered by the Federal Court. After hearing both parties, the Federal Court unanimously upheld the preliminary objection and ordered the matter to be remitted to the Sessions Court for the commencement of the trial.

Sreesanthan also filed two applications to strike out the charges and a discovery application to be supplied with various documents including all recorded statements during investigation, documents seized and information gathered during investigation and Prosecution’s list of witnesses.

On 26 July 2018, the Sessions Court dismissed both striking out applications filed by Sreesanthan.

The Sessions Court, on 30 August 2018, allowed the discovery application partly wherein it directed the Prosecution to supply to the defence:
i)   all documents seized and information collected in connection with the investigations that resulted in the charges unless the Prosecution has otherwise provided; and
ii)  all documents and form of evidence that the Prosecution intends to use as evidence at trial unless the Prosecution has otherwise provided.

Sreesanthan filed a revision to the High Court against dismissal of the striking out applications and discovery application for all recorded statements during investigation.

On 12 July 2019, the High Court dismissed the revision for the striking out applications and discovery application for all recorded statements during investigation filed by Sreesanthan.

No. Nature of Offence Offender(s) Facts of Case Date Charged
Outcome of Criminal Trials & Appeals
1.

Using a scheme to defraud Liqua Health Corporation Berhad (Liqua) in connection with the purchase of 45,960,450 units of Liqua shares

Alice Poh Gaik Lye Alice Poh Gaik Lye, businesswoman and former business coordinator of Liqua at the material time, was charged under section 87A(a) of the SIA 1983 for using a scheme to defraud Liqua by causing Liqua Health Marketing (M) Sdn Bhd (LHMM) to enter into Distribution Agreement (DA) with Wynsum Healthy Living Sdn Bhd (Wynsum) for the supply of health products, when in fact the DA was to facilitate the transfer of RM12 million belonging to LHMM to Wynsum’s bank account, out of which RM9.75 million of the said funds were used to enable the purchase of 45,960,450 units of Liqua shares.

Alice Poh Gaik Lye was charged on 14 June 2010.

Goh Bak Ming was charged on 8 June 2010.

On 14 February 2017, the Sessions Court ruled that the Prosecution had proven a prima facie case and ordered both Alice Poh and Goh Bak Ming to enter their defence to the charges against them.

On 1 July 2019, the Sessions Court acquitted and discharged Alice Poh and Goh Bak Ming at the end of the defence case.

On 8 July 2019, The Prosecution filed an appeal to the High Court against the acquittals of both Alice Poh and Goh Bak Ming.

Goh Bak Ming

Goh Bak Ming, the Managing Director of Liqua at the material time, was charged under section 122C(c) read together with section 87A(a) of the SIA 1983 for abetting Alice Poh Gaik Lye in the commission of the scheme to defraud Liqua.

2.

With intent to deceive, furnishing a false statement to Bursa Malaysia Berhad.

  • Norhamzah Bin Nordin
  • Mohd Azham Bin Mohd Noor
  • Lim Hai Loon

Norhamzah was at the material time the Group Managing Director while Mohd Azham was an executive director of Kosmo Technology Industrial Berhad (“Kosmo Tech”).

Both Norhamzah and Mohd Azham were charged under section 122B(a)(bb) read together with section 122(1) of the Securities Industry Act 1983 and section 369(a)(B) read together with section 367(1) of the Capital Markets & Services Act 2007 for furnishing false statements to Bursa Malaysia Securities Berhad in relation to Kosmo Tech’s eight quarterly reports on the unaudited consolidated results for the financial years 2006 and 2007.

Lim Hai Loon, the Accounts Manager of Kosmo Tech at the material time was charged for abetting Kosmo Tech in furnishing the false statements to Bursa Malaysia Berhad in relation to Kosmo Tech’s eight quarterly reports on the unaudited consolidated results for the financial years 2006 and 2007.

Both Mohd Azham and Lim Hai Loon were charged at the Kuala Lumpur Sessions Court on 26 May 2011.
Norhamzah was charged at the Kuala Lumpur Sessions Court on 7 June 2011.

On 23 September 2016, all three accused persons were acquitted and discharged by the Sessions Court at the end of the prosecution's case.

The SC then filed an appeal to the High Court against the decision of the Sessions Court. On 30 May 2018, the High Court allowed the Prosecution's appeal and set aside the Sessions Court decision and ordered all 3 Accused persons to enter their defence and for the matter to be heard before the same Sessions Court Judge.

The defence case commenced on 13 August 2018.
On 29 April 2019, the Sessions Court convicted Norhamzah, Mohd Azham and Lim Hai Loon and sentenced them as follows:

1) Norhamzah:

  • 1st to 3rd charges: a fine of RM150,000 (in default 2 months jail) and 3 months imprisonment per charge.
  • 4th and 5th charges: a fine of RM200,000 (in default 4 months jail) and 10 months imprisonment per charge.
  • 6th and 7th charges: a fine of RM200,000 (in default 4 months jail) and 1 year imprisonment per charge.
  • 8th charge: a fine of RM200,000 (in default 4 months jail) and 2 years imprisonment.

    Norhamzah's jail terms to run concurrently.

    Norhamzah was sentenced to imprisonment for a total of 2 years and is liable to a total fine of RM1.45 million.

2) Mohd Azham:

  • 1st to 3rd charges: a fine of RM150,000 (in default 2 months jail) and 3 months imprisonment per charge.
  • 4th and 5th charges: a fine of RM200,000 (in default 4 months jail) and 10 months imprisonment per charge.
  • 6th and 7th charges: a fine of RM200,000 (in default 4 months jail) and 1 year imprisonment per charge.
  • 8thcharge: a fine of RM200,000 (in default 4 months jail) and 2 years imprisonment.

    Mohd Azham's jail terms to run concurrently.

    Mohd Azham was sentenced to imprisonment for a total of

    2 years and is liable to a total fine of RM1.45 million.

3) Lim Hai Loon:

  • 1st and 2nd charges: a fine of RM100,000 (in default 1 month jail) and 4 months imprisonment per charge.
  • 3rd to 5th charges: a fine of RM120,000 (in default 2 months jail) and 4 months imprisonment per charge.
  • 6th and 7th charges: 10 months imprisonment per charge.
  • 8th charge – 1 year imprisonment.

    Lim Hai Loon's jail terms to run concurrently.

    Lim Hai Loon was sentenced to imprisonment for a total of

    1 year and is liable to a total fine of RM560,000.

    The Sessions Court Judge allowed a stay of the jail terms pending the accused persons' respective appeals to the High Court.
3.
  • Misleading statement in a material particular
Datuk Ishak Ismail Datuk Ishak was charged with one count of making a misleading statement under section 177(b) of the Capital Markets & Services Act (CMSA) 2007 in an article which was published in 'The Star' newspapers dated 5 June 2010. Datuk Ishak was charged on 13 June 2016. On 10 June 2019 all charges were withdrawn.
  • Insider Trading
Datuk Ishak was charged with two counts of insider trading under section 188(2)(a) of the CMSA. He is alleged to have disposed of 58,691,900 Kenmark shares on 9 and 11 June 2010 whilst in possession of insider information that two of Kenmark's clients had gone bankrupt and that EON Bank Berhad did not agree to uplift the receivership on Kenmark Paper Sdn Bhd.
4. Insider trading

Amran Bin Awaluddin

Nooralina Binti Mohd Shah

Amran bin Awaluddin (Amran) was at the material time the Chief Operating Officer and Non-Independent Executive Director of Ranhill Berhad.

Amran was charged with 7 counts of insider trading under section 89E(2)(a) of the SIA. He is alleged to have acquired 309,100 Ranhill Power Berhad (RPB) shares between 27 July 2007 and 11 September 2007 while in possession of inside information relating to the proposed privatisation and de-listing of RPB.

Nooralina Binti Mohd Shah (Nooralina) was charged under section 89E(2)(a) read together with section 122C(c) of the SIA with 7 counts of abetting Amran in acquiring 309,100 RPB shares between 27 July 2007 and 11 September 2007 in her trading account, while in possession of inside information relating to the proposed privatisation and de-listing of RPB.

Amran and Nooralina was charged on 31 July 2015.

All charges were withdrawn on 27 May 2019.

5. With intent to deceive, furnishing a false statement to Bursa Malaysia Berhad.
  • Norhamzah Bin Nordin
  • Mohd Azham Bin Mohd Noor
  • Lim Hai Loon

Norhamzah was at the material time the Group Managing Director while Mohd Azham was an executive director of Kosmo Technology Industrial Berhad ("Kosmo Tech").

Both Norhamzah and Mohd Azham were charged under section 122B(a)(bb) read together with section 122(1) of the Securities Industry Act 1983 and section 369(a)(B) read together with section 367(1) of the Capital Markets & Services Act 2007 for furnishing false statements to Bursa Malaysia Securities Berhad in relation to Kosmo Tech's eight quarterly reports on the unaudited consolidated results for the financial years 2006 and 2007.

Lim Hai Loon, the Accounts Manager of Kosmo Tech at the material time was charged for abetting Kosmo Tech in furnishing the false statements to Bursa Malaysia Berhad in relation to Kosmo Tech's eight quarterly reports on the unaudited consolidated results for the financial years 2006 and 2007.

Both Mohd Azham and Lim Hai Loon were charged at the Kuala Lumpur Sessions Court on 26 May 2011.

Norhamzah was charged at the Kuala Lumpur Sessions Court on 7 June 2011.

On 23 September 2016, all three accused persons were acquitted and discharged by the Sessions Court at the end of the prosecution's case.

The SC then filed an appeal to the High Court against the decision of the Sessions Court. On 30 May 2018, the High Court allowed the Prosecution's appeal and set aside the Sessions Court decision and ordered all 3 Accused persons to enter their defence and for the matter to be heard before the same Sessions Court Judge.

The defence case commenced on 13 August 2018.

On 29 April 2019, the Sessions Court convicted all three Accused persons and sentenced them as follows:

1. Norhamzah:

  • 1st to 3rd charges: a fine of RM150,000 (in default 2 months jail) and 3 months jail each.
  • 4th and 5th charges: a fine of RM200,000 (in default 4 months jail) and 10 months jail each.
  • 6th and 7th charges: a fine of RM200,000 (in default 4 months jail) and 1 year jail each.
  • 8th charge: a fine of RM200,000 (in default 4 months jail) and 2 years jail each.

Jail terms to run concurrently.

Norhamzah will serve a total jail term of 2 years and will be liable to a total fine of RM1.45 million.

2. Mohd Azham:

  • 1st to 3rd charges: a fine of RM150,000 (in default 2 months jail) and 3 months jail each.
  • 4th and 5th charges: a fine of RM200,000 (in default 4 months jail) and 10 months jail each.
  • 6th and 7th charges: a fine of RM200,000 (in default 4 months jail) and 1 year jail each.
  • 8thcharge: a fine of RM200,000 (in default 4 months imprisonment) and 2 years jail each.

Jail terms to run concurrently.

Mohd Azham will serve a total jail term of 2 years and will be liable to a total fine of RM1.45 million.

3. Lim Hai Loon:

  • 1st and 2nd charges: a fine of RM100,000 (in default 1-month imprisonment) and 4 months jail each.
  • 3rd to 5th charges: a fine of RM120,000 (in default 2 months imprisonment) and 4 months jail each.
  • 6th and 7th charges: 10 months jail.
  • 8th charge – 1 year jail. Jail terms to run concurrently.

Lim Hai Loon will serve a total jail term of 1 year and will be liable to a total fine of RM560,000.

The Sessions Court Judge allowed a stay of the jail term pending the accused persons appeal to the High Court.

6. Distribution of application forms for securities without  a copy of prospectus registered by the Securities Commission
  • Chong Yuk Ming
  • Balachandran a/l A. Shanmugam

Chong and Balachandran were charged under s.232(2) 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.

On 28 June 2019, Chong was sentenced to 1 day imprisonment and fine of RM600,000, in default 6 months imprisonment and Balachandran was sentenced to 1 day imprisonment and fine of RM400,000, in default 4 months imprisonment.

7. Insider trading Dato Ch'ng Poh @ Ch'ng Chong Poh ("Dato Ch'ng Poh")

Dato Ch'ng Poh was charged with fifty-eight (58) counts of insider trading under section 188(2)(a) of the CMSA. He is alleged to have acquired 5,775,700 units of Malaysia Pacific Corporation Berhad ("MPAC") shares between 14 May 2008 and 20 August 2008 while in possession of inside information. The inside information referred to in the charges were in relation to a joint venture project between Oriental Pearl City Properties Sdn Bhd, a wholly owned subsidiary of MPAC and Amanahraya Development Sdn Bhd (ADSB), a wholly owned subsidiary of Amanah Raya Berhad to undertake and manage several developments in Iskandar Development Region in Johor.

Dato Ch'ng Poh was charged on 10 January 2014.

The charges were withdrawn on 16 April 2019.

8.

Failing to appear before an Investigating Officer of SC to be examined orally in connection with an on-going investigation.

Chok Chew Lan

Chok was charged under section 134(5) of the Securities Commission Malaysia Act 1993 for failing to appear before an Investigating Officer of SC to be examined orally on 5 September 2017 and 19 September 2017.

Chok was charged on 24 October 2017.

On 12 June 2018, the judge ruled that the Prosecution had proven a prime facie case and ordered Chok to enter her defence. On 23 July 2018, Chok Chew Lan pleaded guilty to both charges and was sentenced to a fine of RM35,000 for each charge.
The prosecution has filed for an appeal against sentence.

On 20 March 2019, the High Court Judge affirmed the sentence imposed by the Session Court.

9.

Insider trading

Mohd Nor Bin Abdul Wahid ('Nor')

Nor was charged with one count of insider trading under section 188(2)(a) of the CMSA. He is alleged to have acquired 500,000 units of Three-A Resources Berhad shares on 5 October 2009 while in possession of inside information in relation to the proposed collective venture between the businesses of Three-A Resources Berhad and Wilmar International Limited. 

Nor was charged on 13 February 2018.
The charge was withdrawn on 15 April 2019.

10.

Allowing a person who is not an authorised nominee of a deposited security to effect dealings in respect of the deposited security 

Azuzay Bin Zamani ('Azuzay')

Azuzay was charged under section 29A of the Securities Industry (Central Depositories) Act 1991 (SICDA). Azuzay, who holds an account at OSK Investment Bank Berhad, is alleged to have allowed Mohd Nor Bin Abdul Wahid to effect the acquisition of 500,000 units of Three-A Resources Berhad shares on 5 October 2009.

Azuzay was charged on 13 February 2018.
The charge was withdrawn on 15 April 2019.

11. Abetting United U-Li Corporation Berhad (“U-Li”) in making a misleading statement to Bursa Malaysia. Yue Chi Kin

Yue Chi Kin (“Yue”) was charged under section 122B (b)(bb) read together with section 122C(c) of the Securities Industry Act 1983  for abetting U-Li in making a misleading statement to Bursa Malaysia in its Annual Report and Financial Statements for the financial year ended 31 December 2004

Yue was at the material time the audit partner of Messrs Roger Yue, Tan & Associates which audited U-Li’s financial results for its financial year ended 31 December 2004.

Yue was charged at the Kuala Lumpur Sessions Court on 28 April 2009.

On 9 January 2014, the Sessions Court ordered Yue to enter his defence to the charge.

On 21 October 2015, the Sessions Court found Yue guilty under section 122B (b)(bb) read together with section 122C(c) of the Securities Industry Act 1983 and sentenced him to one year imprisonment and fine of RM400,000 (in default 6 months imprisonment).

On 11 March 2019, the High Court allowed Yue's appeal and set aside the Sessions Court's conviction and sentence.

The SC has filed an appeal to the Court of Appeal on 25 March 2019 against the High Court's decision.

12.

Insider trading

Lei Lin Thai ("Lei")

Lei was charged on 29 January 2015 with 53 counts of insider trading under section 188(2)(a) CMSA. He is alleged to have acquired 2,766,600 TH Group Berhad (TH Group) shares between 5 June 2008 and 22 September 2008 in 4 other individuals' accounts while in possession of inside information in relation to the proposed privatization of TH Group via a Selective Capital Repayment exercise.

Lei was charged on 29 January 2015.

All charges were withdrawn on 11 March 2019.

 

13.

Insider trading

A.F.M Shafiqul Hafiz ("Shafiqul")

Shafiqul was charged under section 188(3)(a) of the CMSA for having communicated to one Harjit Singh a/l Gurdev Singh between 22  March 2009 and 6 April 2009 material non-public information. The information was in relation to the proposed privatisation of Johor Land Bhd ("JLand")  via a Voluntary General Offer at a price of RM1.55 per share.

Shafiqul was charged on 22 February 2018.

The charge was withdrawn on 4 March 2019.

 

14.

Insider trading

Harjit Singh a/l Gurdev Singh ("Harjit")

Harjit was charged with three counts of insider trading under section 188(2)(a) of the CMSA. He is alleged to have acquired 346,500 units of Johor Land Bhd ("JLand") shares between 23 March 2009 and 6 April 2009 while in possession of material non-public information. The information was in relation to the proposed privatisation of JLand via a Voluntary General Offer at a price of RM1.55 per share.

Harjit was charged on 22 February 2018.

All charges were withdrawn on 14 February 2019.

No.

Nature of Offence

Offender(s)

Facts of Case

Date Charged

Outcome of Criminal Court Cases and Appeals

1. Submission of false information to the SC Ravandaran a/l Thangeveloo (Ravandaran)

Ravandaran, a former audit partner of Messrs. Arthur Andersen & Co. who was in charge of Kiara Emas Asia Industries Bhd (Kiara Emas), was charged with four charges under section 32B (1)(c) (aa) of the SCA 1993 for causing to be submitted false information to the SC.

The said false information was in relation to the status of the utilisation of proceeds from a rights issue by Kiara Emas contained in the `Follow Up Questionnaires' of Kiara Emas for the financial years ended 31 March 1997, 1998, 1999 and 2000 which had been utilised in breach of the conditions of the SC's letter of approval dated 14 November 1996.

Ravandaran was charged on 13 August 2004.

On 5 April 2019, Ravandaran pleaded guilty to the first, second and third charge under section 32B (1)(c) (aa) of the SCA 1993 and was sentenced by the court as follows:

  • 1st charge : RM150,000 (in default, 1 year imprisonment)
  • 2nd charge: RM150,000 (in default, 1 year imprisonment)
  • 3rd charge: RM150,000 (in default, 1 year imprisonment)

The fourth charge was taken into consideration by the court under section 171A of the Criminal Procedure Code during sentencing.

2. Furnishing false statements to Bursa Malaysia Securities Berhad
  • Koh Tee Jin
  • Lee Han Boon
  • Saipuddin Lim bin Abdullah

Koh Tee Jin, Saipuddin Lim and Lee Han Boon were each charged with five counts of furnishing false statements relating to the revenue of Axis Incorporation Berhad (“Axis”) to Bursa Malaysia. The charges which were preferred under section 122B(b)(bb) of the Securities Industry Act 1983 (SIA) and section 369(b)(B) of the Capital Markets and Services Act 2007 (CMSA) were in relation to false statements contained in Axis’ four quarterly reports for the Financial Year 2007 and the quarter ending 31 March 2008.

Koh Tee Jin, Lee Han Boon and Saipuddin Lim were charged on 21 March 2013.

On 10 July 2017, Lee Han Boon and Saipuddin Lim each pleaded guilty to one charge of furnishing false statements to Bursa in Axis' quarterly report for the Financial Year ending 31 March 2008. The other four charges were taken into consideration by the court under section 171A of the Criminal Procedure Code during sentencing.

Lee Han Boon was sentenced to 7 months imprisonment and RM200,000 fine while Saipuddin Lim was sentenced to 12 months imprisonment.

On 21 March 2019, Koh Tee Jin pleaded guilty to one charge of furnishing false statements to Bursa in Axis' unaudited report for the First Quarter ended 30 June 2006. Three other similar charges were taken into consideration by the court under section 171A of the Criminal Procedure Code during sentencing. Koh was sentenced to one (1) day imprisonment and a fine of RM200,000.00.

The fifth charge against Koh in relation to Axis' quarterly report for its financial year in 2008 was withdrawn by the prosecution following Koh's guilty plea.

3. Abetting the furnishing of a false statement to Bursa Malaysia Securities Berhad Lee Koon Huat Lee Koon Huat was charged with four counts of abetting Axis Incorporation Berhad (“Axis”) in furnishing false statements relating to the revenue of Axis to Bursa Malaysia. The charges which were preferred under section 122C(c) read together with section 122B(a)(bb) of the Securities Industry Act 1983 (SIA) were in relation to false statements contained in Axis’ four quarterly reports for the financial year 2007.
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