In a suit filed in 2020, the SC claimed that Raymond Yap had breached section 188(2)(a) and (b) of the Capital Markets and Services Act 2007 (CMSA) when he disposed a total of 43,823,600 Patimas shares held by Law Siew Ngoh, former Managing Director of Patimas, from June to July 2012. He committed this breach whilst in possession of material, non-public information relating to audit queries and issues regarding the suspicious transactions between Patimas and its top debtors. The matter was raised and discussed by Ernst & Young (EY) Malaysia, Patimas’ external auditor, during a meeting with the company’s management.

The Board of Directors of Patimas subsequently on 31 July 2012 announced to Bursa Malaysia that Patimas would not be able to issue the Annual Audited Financial Statements by 31 July 2012 for the financial period from 1 January 2011 to 31 March 2012 due to unresolved significant audit findings/queries.

In allowing the SC’s claim, Judicial Commissioner Puan Adlin Abdul Majid declared that Raymond Yap had breached the relevant securities laws and ordered him to pay a sum of RM3.28 million being an amount equal to three times the losses avoided by him as a result of the insider trading.

In addition, Raymond Yap was also ordered to pay the SC a civil penalty of RM1 million and barred from being a director of any public listed company for a period of five years starting 7 April 2022. The SC was also awarded costs of RM100,000.