Lee was initially charged at the Sessions Court on 26 March 2013 with four charges under section 122C(c) read together with section 122B(a)(bb) of the Securities Industry Act 1983 (SIA) for abetting Axis in the furnishing of false financial statements relating to the revenue of Axis for the financial year 2007. Evidence adduced during the trial established that Lee had instructed the inflation of Axis’ reported revenue in its four unaudited quarterly results for the financial year 2007.

The SC had also previously charged three former executive directors of Axis, Lee Han Boon, Saipuddin Lim bin Abdullah and Koh Tee Jin, with five charges each for knowingly permitting the furnishing of false financial statements relating to the revenue of Axis for financial years 2007 and 2008.

All three individuals pleaded guilty midway during the prosecution's case via plea bargaining applications and were sentenced to terms of imprisonment ranging from one day to 12 months. Lee Han Boon and Koh Tee Jin were also sentenced to fines of RM200,000 respectively.

The trial then proceeded only against Lee.

Following a full trial, Lee was found guilty and convicted by Sessions Court Judge Tuan Azman bin Ahmad on 11 April 2022 on all four charges. Lee was sentenced to six months’ imprisonment and a fine of RM200,000 for each charge (in default, six months’ imprisonment) with the imprisonment terms to be served concurrently. Lee then filed an appeal against the conviction and sentence to the High Court and obtained a stay of execution of the sentence pending the appeal.

In dismissing Lee’s appeal against conviction earlier today, High Court judge YA Puan Noor Ruwena binti Dato’ Md Nurdin held that the Prosecution had proven the charges against Lee beyond reasonable doubt at trial. The High Court found that the conviction was safe and there were no reasons to interfere with the decision of the Sessions Court.

The High Court further agreed with the SC’s submission that the sentence imposed against Lee was appropriate in view of Lee’s role in the commission of the offences. As such, the Court dismissed Lee’s appeal against sentence and upheld the sentence imposed by the Sessions Court, being six months’ imprisonment and a fine of RM200,000 for each charge (in default, six months’ imprisonment).

Following the decision by the High Court, Lee applied for a stay of execution of the sentence of imprisonment and fine. After hearing submissions by parties, the High Court allowed a stay of execution in respect of the sentence of imprisonment, but declined to grant a stay in respect of the fine. Lee will have to pay a total fine of RM800,000 by today, failing which he will be imprisoned in default of the fine.

The SC was represented by SC Deputy Public Prosecutor Shoba Venu Gobal and prosecuting officers Low Wen Zhen, Eunice Ong, and Amina Qistina Mohd Idris, whilst Lee was represented by defence counsel Jason Ng Kau and Caroline Lee.

The High Court's decision today reaffirms the importance of accuracy and integrity in financial reporting by PLCs. The SC remains committed to taking firm enforcement action against those who participate in or facilitate the dissemination of false or misleading information to the investing public.