Updates on Criminal Prosecution in 2021
No. Nature of Offence Offender(s) Facts of Case Date Charged
Outcome of Criminal Trials & Appeals
1. 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 SC has filed an appeal to the Court of Appeal on 25 March 2019 against the High Court’s decision.

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

2. 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.

3. 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.

Criminal Prosecution Initiated – Person(s) Charged
1. 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 SC 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.

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 SC filed an appeal against the decision of the Sessions Court to the High Court.

2. Failing to appear before an Investigating Officer of the SC 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 SC 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 SC 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.

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