Updates on Criminal Prosecution in 2021
Commencement of Forfeiture Action
No. Nature of Offence Respondent(s) Facts of Case Outcome of Case
Filing of Forfeiture Application
1. Money Laundering
  • Havana Bayview Sdn Bhd (Company No. 1091507-M)
  • Wong Shee Kai (NRIC No. 811212-14-5957)

The Public Prosecutor commenced a criminal application under Section 56 of the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001 (“AMLATFPUAA”) to forfeit property identified as Hakmilik Induk/Lot Gran 704444, No. Lot 230, Seksyen 58, Bandar dan Daerah Kuala Lumpur dan Negeri Wilayah Persekutuan Kuala Lumpur, No. Parcel 62-2 Four Seasons Private Residences Kuala Lumpur, bearing the postal address of Unit No. 62-2, Four Seasons Place Kuala Lumpur, No. 145 Jalan Ampang, 50450 Kuala Lumpur, in the possession of the 1st Respondent, Havana Bayview Sdn Bhd (Company No. 1091507-M).

In addition, the applicantion is also to forfeit a sum of RM445,039.28 in the accounts of the 2nd Respondent, Wong Shee Kai, in HSBC Bank Berhad Damansara Heights Branch bearing the account number 359-147998-108.

An order is also sought under Section 63 and 64 of the AMLATFPUAA that Wong Shee Kai is an absconded person.

The notice of motion and relevant affidavits in support were filed on 3 May 2021.
No. Breach Defendants Brief Facts of the Case Outcome
Outcome of Criminal Prosecution
1. 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 KC, 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.

The charges against Lim KC, Tay HC and Theng BC were discontinued by the SC on 26 July 2021 following the entering of a consent judgment between the 3 Accused persons and the SC on 28 April 2021.

The consent judgment details can be found here :
https://www.sc.com.my/regulation/enforcement/actions/civil-actions-and-regulatory-settlements/civil-action-in-2021

2.

Insider Trading Ewe Lay Peng

On 29.3.2017, Ewe Lay Peng was charged contravention of section 188 CMSA relating to the proposed conditional take-over offer by OSPL Holdings Sdn Bhd (OHSB) to acquire all voting shares in PacificMas not already owned by OHSB. 

On 14 July 2021, the principal and alternative insider trading charges against Ewe Lay Peng were withdrawn. This was subsequent to the entering of a consent judgment in the civil Sessions Court with Ewe Lay Peng 24 May 2021.

The consent judgment can be found here:
https://www.sc.com.my/regulation/enforcement/actions/civil-actions-and-regulatory-settlements/civil-action-in-2021

No. Nature of Offence Offender(s) Facts of Case Date Charged
Outcome of Criminal Trials & Appeals
1. Insider Trading Ramesh a/l Rajaratnam

Ramesh was charged with 3 counts of insider trading under section 188(2)(a) of the Capital Markets and Services Act (CMSA). He is alleged to have disposed of 10,200,800 Malaysian Merchant Marine Bhd (MMM) shares on 11 January 2010, 19 February 2010 and 22 February 2010 while in possession of inside information relating to the following:

  • the proposed downgrade by Malaysian Rating Corporation Berhad (MARC) of its credit rating on MMM’s RM120 million Al-Bai’ Bithaman Ajil Islamic Debt Securities (BaIDS) from the category of investment grade to non-investment grade; and
  • the classification of MMM as a PN17 company.

Ramesh was charged on 29 April 2015 with three counts of insider trading.

On 11 September 2019, the Sessions Court found Ramesh guilty on all counts. Ramesh was sentenced to 5 years imprisonment and a fine of RM3 million (in default 3 years imprisonment) for each charge. The jail terms to run concurrently.

On 20 May 2021, the High Court allowed Ramesh’s appeal. The conviction and sentence were accordingly set aside.

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

2. 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 10 March 2019, the High Court allowed Yue’s appeal and set aside the Sessions Court’s conviction and sentence.

The Public Prosecutor has filed an appeal to the Court of Appeal on 25 March 2019 against the High Court’s decision.

On 19 April 2021, the Public Prosecutor withdrew its appeal at the Court of Appeal.

3. Insider trading Fang Siew Yee

Fang Siew Yee (Fang), former Executive Director of Three-A Resources Berhad (3A), was charged under section 188(3)(a) of the Capital Market and Services Act 2007 (CMSA) for having communicated material non-public information to one Fong Chiew Hean on 5 September 2009.

The material non-public information was in relation to the collective venture between the businesses of 3A and Wilmar International Limited (Wilmar) which later materialized through a 20% private placement of the issued and paid-up share capital of 3A to Wilmar.

Fang was charged on 25 October 2016.

On 23 March 2021, Fang pleaded guilty to the charge. The Sessions Court convicted Fang and sentenced her to 1 day imprisonment and a fine of RM2.5 million.

4. Insider trading Fang Siew Yee

Fang Siew Yee (Fang), former Executive Director of Three-A Resources Berhad (3A), was charged with 8 counts of insider trading under section 188(2)(a) of the Capital Market and Services Act 2007 (CMSA) for acquiring 2,720,000 units of 3A shares between 27 August 2009 and 5 October 2009 while in possession of material non-public information.

The material non-public information was in relation to the collective venture between the businesses of 3A and Wilmar International Limited (Wilmar) which later materialized through a 20% private placement of the issued and paid-up share capital of 3A to Wilmar.

Fang was charged on 25 October 2016.

On 23 March 2021, Fang pleaded guilty to all 8 charges. The Sessions Court convicted Fang on the 8 charges and sentenced her to 1 day imprisonment and a fine of RM2.5 million for the first charge.

The remaining seven charges were taken into consideration by the Sessions Court under section 171A of the Criminal Procedure Code during sentencing.

No. Nature of Offence Offender(s) Facts of Case Date Charged
Criminal Prosecution Initiated – Person(s) Charged
1. Knowingly causes the furnishing of a false statement to Bursa Malaysia Securities Berhad Ong Kar Kian Ong Kar Kian was charged with one count of knowingly causing the furnishing of a false statement relating to the revenue of Asia Media Group Berhad (“Asia Media”) to Bursa Malaysia Securities Berhad. The charge which was preferred under section 369(b)(B) of the Capital Markets and Services Act 2007 (“CMSA”) read together with section 367(1) CMSA was in relation to a false statement contained in Asia Media’s ‘Quarterly report on consolidated results for the 4th quarter ended 31 December 2015’ Ong Kar Kian was charged on 30 September 2021 at the Kuala Lumpur Sessions Court.
2. Holding out as a fund manager without a license.

Uzir Bin Abdul Samad
(“Uzir”)

Uzir a former director of UAS Management Bistari Sdn Bhd was charged for committing an offence under section 58(1) of the Capital Markets and Services Act 2007 (CMSA) for holding himself out as a fund manager when he is not licensed by the Public Prosecutor to carry out the regulated activity of fund management.

Uzir was also charged for committing two offences under section 362(3) of the CMSA for using the titles of “Fund Manager” and “Securities Commission Capital Market Services Representative’s Licence (CMSRL) holder” respectively, tending to create the belief that he was licensed to carry on the business of fund management.

Uzir was charged on 24 March 2021.
No. Nature of Offence Offender(s) Facts of Case Date Charged

Outcome of Criminal Court Cases and Appeals

1.

Insider trading

Sreesanthan A/L Eliathamby

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:

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

VADS Berhad while in possession of VADS’s proposed privatisation.

In one of criminal actions against Sreesanthan, he was charged on 20 July 2012 with 3 counts of insider trading under section 89E(2)(a) of the SIA for allegedly to have traded in the shares of Sime Darby Berhad while in possession of the proposed acquisition of companies within the Sime Darby, Guthrie and Golden Hope groups by Synergy Drive Sdn Bhd.

On 11 January 2021, the Sessions Court acquitted and discharged Sreesanthan at the end of the prosecution case.

On 22 January 2021, the Public Prosecutor filed an appeal against the decision of the Sessions Court to the High Court.

2. Failing to appear before an Investigating Officer of the Public Prosecutor in connection with an investigation. Ong Kar Kian

Ong Kar Kian (“Ong”) was charged with 3 counts of failing to comply with Orders issued by an SC Investigating Officer in 2018. The Orders required him to attend before the said Investigating Officer to have his statement 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 was required by the Public Prosecutor to assist in an ongoing investigation under the Capital Markets and Services Act 2007 and AMLATFPUAA.

Ong was charged at the Kuala Lumpur Sessions Court on 19 February 2020.

On 10 December 2020, the Sessions Court convicted Ong on all 3 charges and sentenced him to:

  • A fine of RM75,000 (being RM25,000 per charge with 3 months imprisonment in default for each charge) and 1 day imprisonment per charge; and
  • A daily fine of RM1,500 for the 673 days he had failed to appear before an Investigating Officer of the Public Prosecutor as required amounting to RM1,009,500 (7 months imprisonment in default).

In total, Ong is required to pay a fine of RM1,084,500. Ong’s imprisonment terms are to run concurrently.

On 17 December 2020, Ong filed an appeal to the High Court against his sentence and conviction together with an application to stay the payment of his fine pending the results of his appeal.

On 8 January 2021, the High Court rejected Ong’s stay application and directed him to pay the fine within 14 days of the decision.

Ong’s appeal before the High Court is set for 23 February 2021.

GET IN TOUCH
General Line: +603-6204 8000
related sites
© Copyright Securities Commission Malaysia   |   Contact Us   |  Disclaimer  |  The site is best viewed using Internet Explorer 11 and Google Chrome with mimimum resolution of 1280x1024
Ooops!
Generic Popup