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.
No. Nature of Offence Offender(s) Facts of Case Case Update

Outcome of Criminal Court Cases and Appeals – Persons Acquitted

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

Goh Bak Ming and Alice Poh Gaik Lye were charged on 8 June 2010 and June 2010 respectively at the Sessions Court.

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

Both Alice and Goh failed to attend any of the case managements that were held beginning from 19 September 2019. Continuous efforts were made to locate both Alice and Goh by the SC.

On 15 September 2020, the Prosecution successfully applied to the High Court for a warrant of arrest against both Alice and Goh to compel their appearance in Court. However, the execution of the warrant was unsuccessful and on 30 September 2020, the High Court then cancelled the warrant of arrest and disposed the appeal with liberty to file afresh.
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.
No. Nature of Offence Offender(s) Facts of Case Date Charged

Outcome of Criminal Trials & Appeals

1.

Insider trading Thai Kim Sim (“Thai”) Thai was charged under section 188(3)(a) of the CMSA for allegedly having communicated material non-public information to one Tiong Kiong Choon between 26 October 2007 and 29 October 2007. The material non-public information was in relation to audit adjustments proposed by APL Industries’ (“APLI”) auditors which would result in APLI reporting a higher loss for the financial year ended 30 June 2007 as compared to the previously reported unaudited 4th quarter results for the same financial year and that APLI would be classified as an affected issuer pursuant to the Listing Requirements of Bursa Malaysia Securities Bhd and Practice Note 17/2005.

Thai was charged on 15 December 2014.
On 24 November 2017, the Sessions Court convicted Thai and sentenced him to 5 years imprisonment and a fine of RM5 Million.

On 29 September 2020, the High Court allowed Thai’s appeal against his conviction and sentence.

The AGC has filed an appeal to the Court of Appeal against the High Court’s decision.

2.

Insider trading Tiong Kiong Choon (“Tiong”) Tiong was charged with 2 charges under section 188(2)(a) of the CMSA for allegedly acquiring a total 6,208,500 shares of APL Industries (“APLI”) on 26 October 2007 and 29 October 2007 while in possession of inside information. The material non-public information was in relation to audit adjustments proposed by APLI’s auditors which would result in APLI reporting a higher loss for the financial year ended 30 June 2007 as compared to the previously reported unaudited 4th quarter results for the same financial year and that APLI would be classified as an affected issuer pursuant to the Listing Requirements of Bursa Malaysia Securities Bhd and Practice Note 17/2005.

Tiong was charged on 15 December 2014.
On 24 November 2017, the Sessions Court convicted Tiong and sentenced him to 5 years imprisonment and a fine of RM5 Million for each charge.

On 29 September 2020, the High Court allowed Tiong’s appeal against his conviction and sentence.

The AGC has filed an appeal to the Court of Appeal against the High Court’s decision.

3.

Abetting one Gordon Toh Chun Toh to engage in an act which operates as a fraud in connection with the purchase of securities (Principal Charge)

Criminal breach of trust (Alternative Charge)

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, together with Toh Chun Toh Gordon (Gordon).
  • On 22 September 2011, the Sessions Court Judge convicted both Abul Hasan and Gordon of committing criminal breach of trust under section 409 of the Penal Code. Abul Hasan was sentenced to 6 years’ imprisonment while Gordon was sentenced to 12 years’ imprisonment and also a fine of RM1 million.
  • Abul Hasan and Gordon filed an appeal to the High Court against the conviction and sentence.
  • The appeal by Gordon has since abate upon his demise on 27 August 2012.
  • On 29 September 2020, the High Court allowed Abul’s appeal and set aside the conviction and sentence.
  • The SC has filed an appeal to the Court of Appeal against the acquittal and discharge.
4. Insider trading Tan Bee Geok Tan Bee Geok was charged under section 188(3)(a) of the Capital Markets and Services Act 2007 (“CMSA)” for having communicated material non-public information to one Tan Bee Hong between 23 October 2007 and 31 October 2007. The material non-public information was in relation to audit adjustments proposed by APL Industries’ (“APLI”) auditors which would result in APLI reporting a higher loss for the financial year ended 30 June 2007 as compared to the previously reported unaudited 4th quarter results for the same financial year and that APLI would be classified as an affected issuer pursuant to the Listing Requirements of Bursa Malaysia Securities Bhd and Practice Note 17/2005.

Tan Bee Geok was charged on 15 December 2014.
On 9 August 2018, the Sessions Court convicted Tan Bee Geok and sentenced her to 5 years imprisonment and a fine of RM7 Million.

On 7 September 2020, a civil action was initiated against Tan Bee Geok and a consent order was entered between the SC and Tan Bee Geok on 17 September 2020.

On 24 September 2020, the High Court allowed the appeal by Tan Bee Geok against her conviction and sentence.

5. Insider trading Tan Bee Hong Tan Bee Hong was charged under s188(2)(a) of the Capital Markets and Services Act 2007 (“CMSA”) for disposing of 350,000 APL Industries (“APLI”) shares on 31 October 2007 while in possession of inside information. The material non-public information was in relation to audit adjustments proposed by APLI’s auditors which would result in APLI reporting a higher loss for the financial year ended 30 June 2007 as compared to the previously reported unaudited 4th quarter results for the same financial year and that APLI would be classified as an affected issuer pursuant to the Listing Requirements of Bursa Malaysia Securities Bhd and Practice Note 17/2005.

Tan Bee Hong was charged on 15 December 2014.
On 9 August 2018, the Sessions Court convicted Tan Bee Hong and sentenced her to 5 years imprisonment and a fine of RM7 Million.

On 7 September 2020, a civil action was initiated against Tan Bee Hong and a consent order was entered between the SC and Tan Bee Hong on 17 September 2020.

On 24 September 2020, the High Court allowed the appeal by Tan Bee Hong against her conviction and sentence.

6. With intent to deceive, furnished a misleading statement to Bursa Malaysia Gan Boon Aun (Gan)

Gan, former Chief Executive Officer and Executive Director of Transmile Group Berhad (Transmile) was charged for abetting Transmile in making a misleading statement relating to Transmile's revenue in the company's Quarterly Report on Unaudited Consolidated Results for the Financial Year ended 31 December 2006 which was likely to induce the purchase of Transmile's shares by other persons, an offence under section 86(b) read together with section 122C(c) of the Securities Industry Act 1983 (SIA).

Gan was also charged in alternative with intent to deceive, furnished a misleading statement to Bursa Malaysia in the same financial statement, an offence under section 122B(a)(bb) read together with section 122(1) of the SIA.

On 12 July 2007, Gan was charged with the principal charge under section 86(b) read together with section 122C(c) of the SIA.

On 26 May 2008, Gan was charged in the alternative under section 122B(a)(bb) read together with section 122(1) of the SIA.

The trial commenced on 22 July 2010 and the Prosecution closed its case on 28 January 2011 after having called 42 witnesses.

On 16 March 2011, the Sessions Court held that the Prosecution had proven a prima facie case and ordered Gan to enter his defence on the alternative charge.

On the eve of the hearing of the defence case, Gan filed an application under section 30 of the Courts of Judicature Act 1964 (“CJA”) to challenge the constitutionality of section 122(1) of the SIA.

On 15 March 2017, the Federal Court upheld that section 122(1) of the SIA was constitutional and ordered for the case to be remitted to the Sessions Court for commencement of defence case.

Subsequently on 27 April 2017, Gan filed an application under rule 137 of the Rules of the Federal Court 1995 to review and set aside the decision of the Federal Court on 15 March 2017. On 21 June 2017, Gan’s application was dismissed by the Federal Court.

On the eve of the hearing of the defence case, Gan made another similar application under section 30 of the CJA before the Sessions Court but it was again unsuccessful.

On 6 December 2017, Gan filed an appeal to the High Court and simultaneously filed a motion for revision to the High Court on 15 December 2017.

On 15 January 2018, the High Court dismissed Gan’s motion for revision. On the very same day, Gan filed an appeal to the Court of Appeal.

Gan’s appeal at the High Court was dismissed on 17 May 2018 after the Prosecution successfully raised preliminary objection.

On 18 May 2018, the Court of Appeal allowed the Prosecution’s preliminary objection and dismissed Gan’s appeal. The Court of Appeal ordered for the defence case to commence.

The defence case finally commenced in July 2018 and on 14 February 2020, the defence closed its case without calling any other witness.

On 27 August 2020, Gan was convicted by the Sessions Court on the alternative charge. Gan was sentenced to a fine of RM2.5million (in default, 18 months’ imprisonment) and 1 day imprisonment.

The SC has filed an appeal to the High Court against the sentence imposed by the Sessions Court, whilst Gan is appealing against the conviction and sentence.

7. With intent to deceive, furnished false information to Bursa Malaysia Securities Berhad (“Bursa Malaysia”) Dato' Dr. Haji Mohd. Adam Bin Che Harun

Dato’ Adam, the Executive Chairman and director of Megan Media Holdings Bhd (“MMHB”) at the material time was charged under section 122B(a)(bb) read together with section 122(1) of the SIA 1983 for furnishing false information to Bursa Malaysia.

The false information was in relation to the revenue in MMHB’s Quarterly Report on Consolidated Results for the Financial Period ended 31 January 2007.

Dato' Adam was charged on 10 December 2007. On 17 May 2017, the Sessions Court found Dato' Adam guilty under section 122B(a)(bb) of the SIA read together with section 122(1) of the same Act.  He was sentenced to 18 months imprisonment and fine of RM300,000 (in default 1 year imprisonment).

Dato' Adam then filed an appeal to the High Court against his conviction and sentence. On 21 June 2019, the High Court affirmed his conviction by the Sessions Court. The appeal against his sentence was allowed in part, whereby the imprisonment term of 18 months was reduced to 6 months while the fine of RM300,000 was maintained. The High Court also allowed Dato' Adam's application for a stay of execution of the imprisonment term pending his appeal to the Court of Appeal.

On 15 September 2020, the Court of Appeal affirmed his conviction and allowed the SC's cross-appeal against sentence. The panel unanimously reinstated the imprisonment term of 18 months imposed by the Sessions Court. The fine of RM300,000 was maintained.

8.

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.

9.

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.

10.

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.

11.

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.

 

12. 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.

13. 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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