Court of Appeal Rules in Favour of the SC, Former Deputy MD of Stone Master Ordered to Pay RM11.54 Million Disgorgement and Civil Penalty

4 March 2022 |  Kuala Lumpur 

The Court of Appeal, on 3 March 2022, ruled in favour of the Securities Commission Malaysia (SC) and upheld the decision of the High Court in 2019 that Datin Chan Chui Mei (Chan), the former Deputy Managing Director (Deputy MD) of Stone Master Corporation Berhad (Stone Master) had breached securities laws.

Justices YA Dato’ Lee Swee Seng, YA Datuk Hadhariah Syed Ismail and YA Dato' Gunalan a/l Muniandy, stated that the Court of Appeal did not find any error in the findings of the High Court judge. In 2019, the High Court found that Chan had caused wrongful loss to Stone Master, in breach of section 317A of the Capital Markets and Services Act 2007 (CMSA).

Chan was ordered to pay RM11.54 million and a civil penalty of RM1 million to the SC. During the trial, it was established that Stone Master had paid several local representatives of several foreign companies non-refundable deposits amounting to RM11.59 million. Evidence showed that RM11.54 million of the deposits were subsequently transferred into Datin Chan’s personal bank accounts.

On 28 September 2016, the SC had obtained an interim injunction to restrain Chan from dealing with monies in her personal bank accounts up to the value of RM11.54 million.


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