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

2. 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.

3.

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.

4.

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.

5.

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.

6. 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.

7.

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.

 

8.

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.

 

9.

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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