Updates on Criminal Prosecution in 2020
No. Nature of Offence Offender(s) Facts of Case Date Charged
Criminal Prosecution Initiated – Person(s) Charged
1. Money Laundering
  1. Wong SK Holdings Sdn. Bhd. (Syarikat No.: 729123-K)
  2. Wong Shee Kai (No. NRIC: 811212-14-5957)

On 8 May 2020, the SC filed a Notice of Motion against Wong SK Holdings Sdn. Bhd. and Wong Shee Kai (Ricky Wong) under section 56 of the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001 (AMLATFPUAA) to forfeit 5,792,000 units of Bright Packaging Industry Berhad (Bright Packaging) shares held in an RHB Investment Bank equity account belonging to Wong SK Holdings Sdn. Bhd.

The SC further sought an order under sections 63 and 64 of AMLATFPUAA that Wong Shee Kai was an absconded person and was to be treated as if he had been convicted of a serious offence.

Notice of motion filed on 8 May 2020.
2. Securities Fraud Afkariah binti Md Norani

Afkariah binti Md Norani (Afkariah), a former unit trust consultant, was charged with 4 counts of securities fraud under Section 179(b) of the Capital Markets & Services Act. Between August 2015 and November 2016, Afkariah is alleged to have deceived four individuals of investments amounting to RM50,000. Afkariah allegedly represented to the investors that their monies would be invested in an RHB Investment Bank Bhd (RHBIBB) investment scheme when in fact, such scheme did not exist. The monies deposited by the said individuals were instead used by Afkariah to purchase shares in her own trading account at RHBIBB.

Afkariah was charged on 13 February 2020.
3. Failing to appear before SC Investigating Officer in connection with an investigation
  • Ong Kar Kian
  • Amirruddin Bin Nin

Ong Kar Kian and Amirruddin Bin Nin were charged with 3 counts respectively for failing to comply with the orders issued by SC Investigating Officer in 2017 and 2018 requiring them to attend before the said officer for their statements to be recorded, under section 32(8)(a) of Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001 (AMLATFPUAA).

Ong who was the Group Accountant of Asia Media Group Berhad and Amirruddin who was a named director of several private companies were required by the SC to assist in an on-going investigation under the Capital Markets and Services Act 2007 and AMLATFPUAA.

Ong and Amirruddin were charged on 19 February 2020.

Outcome of Criminal Trials & Appeals

1.

Submission of misleading information to SC in connection with a proposal

Lim Kim Hai (“Lim KH”)

Lim KH was charged with having committed an offence under section 32B(1)(a)(aa) read together with section 138(2) of the SCA when GP Ocean submitted through Alliance Merchant Bank Bhd, 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 Bhd.

Lim KH was charged in the Sessions Court on 22 May 2007.On 6 January 2011, the Sessions Court acquitted and discharged him. The prosecution then appealed to the High Court, which on 14 February 2017, overturned the acquittal and ordered Lim KH to enter his defence on the charge against him.

On 28 March 2018, the Sessions Court acquitted Lim KH at the end of the Defence’s case.

On 9 April 2018, the Prosecution filed an appeal to the High Court against the acquittal.

On 11 August 2020, with the consent of the Public Prosecutor, Lim KH paid a criminal compound of RM300,000.

On 18 August 2020, the appeal was withdrawn.

2.

Submission of misleading information to SC in connection with a proposal

Lee Sin Teck (“Lee”)

Lee was charged with having committed an offence under section 32B(1)(a)(aa) read together with section 138(2) of the SCA when GP Ocean submitted through Alliance Merchant Bank Bhd, 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 Bhd.

Lee was charged in the Sessions Court on 18 April 2007On 6 January 2011, the Sessions Court acquitted and discharged him. The prosecution then appealed to the High Court, which on 14 February 2017, overturned the acquittal and ordered Lee to enter his defence on the charge against him.

On 28 March 2018, the Sessions Court acquitted Lee at the end of the Defence’s case.

On 9 April 2018, the Prosecution filed an appeal to the High Court against the acquittal.

On 11 August 2020, with the consent of the Public Prosecutor, Lee paid a criminal compound of RM300,000.

On 18 August 2020, the appeal was withdrawn.

3.

Submission of misleading information to SC in connection with a proposal

Tan Siok Wan (“Tan”)

Tan was charged with having committed an offence under section 32B(1)(a)(aa) read together with section 138(2) of the SCA when GP Ocean submitted through Alliance Merchant Bank Bhd, 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 Bhd.

Tan was charged in the Sessions Court on 18 April 2007. On 6 January 2011, the Sessions Court acquitted and discharged her. The prosecution had then appealed to the High Court, which on 14 February 2017, overturned the acquittal and ordered Tan to enter her defence on the charge against her.

On 28 March 2018, the Sessions Court acquitted Tan at the end of the Defence’s case.

On 9 April 2018, the Prosecution filed an appeal to the High Court against the acquittal.

On 11 August 2020, with the consent of the Public Prosecutor, Tan paid a criminal compound of RM300,000.

On 18 August 2020, the appeal was withdrawn.

4.

Prohibited conduct of person in possession of inside information

Dato’ Lim Kim Chuan (“Lim KC”)

Tay Hup Choon (“Tay HC”)

Theng Boon Cheng (“Theng BC”)

Lim KC was charged with 11 charges under section 188(2)(a) of the CMSA for acquiring M3nergy Berhad (M3nergy) shares between 6 August 2008 to 11 September 2008 while in possession of inside information. Lim KC was the CEO and Director of Melewar Industry Group Berhad and was also a Director of M3nergy at the material time.

The inside information was in relation to the proposed take-over offer by Melewar (BVI) Ltd (Melewar) to acquire M3nergy which was announced to Bursa Malaysia on 12 September 2008. The shares were acquired by Lim KC through trading accounts belonging to 2 other individuals.

Tay HC was charged with 9 charges of abetting Lim KC in the commission of the offences under section 370(c) read together with section 188(2)(a) of the CMSA. Tay HC is one of the account holders of the trading account used by Lim KC to acquire the M3nergy shares. Tay is Lim KC’s brother-in-law.

Theng BC was charged with 11 charges of abetting Lim KC in the commission of the offences under section 370(c) read together with section 188(2)(a) of the CMSA. Theng BC was the remisier who executed the trades of the M3nergy shares for Lim KC.

Lim KC, Tay HC and Theng BC were charged in the Sessions Court on 24 November 2015. On 30 April 2018, the Sessions Court acquitted and discharged Lim KM, Tay HC and Theng BC without calling for their defence.

On 3 May 2018, the Prosecution filed an appeal to the High Court against the acquittal.

On 7 July 2020, the High Court allowed the appeal and set aside the order of acquittal and called for defence against all 3 accused persons. The defence case will be heard before the same Sessions Court judge.

 

5. Securities fraud
[Section 179(b) CMSA]
Afkariah binti Md Norani

Afkariah binti Md Norani (Afkariah), a former unit trust consultant, was charged with 4 counts of securities fraud under Section 179(b) of the Capital Markets & Services Act. Between August 2015 and November 2016, Afkariah is alleged to have deceived four individuals of investments amounting to RM50,000.

Afkariah allegedly represented to the investors that their monies would be invested in an RHB Investment Bank Bhd (RHBIB) investment scheme when in fact, such scheme did not exist. The monies deposited by the said individuals were instead used by Afkariah to purchase shares in her own trading account at RHBIB.

Afkariah was charged on 13 February 2020.

On 12 June 2020, Afkariah pleaded guilty to all charges and was convicted and sentenced to 6 months' imprisonment and six months' imprisonment and RM1 million fine, in default one month imprisonment, for each charge. The jail term is to run concurrently.

6. Insider trading Tan Giap How (Tan) Tan was charged under section 188(3)(a) of the CMSA for allegedly having communicated material non-public information to one Ng Ee Fang between 25 September 2011 and 20 October 2011. The material non-public information was in relation to the proposed take-over offer by MBM Resources Berhad to acquire all voting shares and outstanding warrants in Hirotako Holdings Berhad.

Tan was charged on 13 March 2018.

The charge against him was withdrawn on 11 June 2020.

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