The suit, filed on 5 July 2024 at the Kuala Lumpur High Court, claimed that Chan communicated inside information to one Dato’ Lim Thiam Huat (Lim), in breach of section 188(3)(a) of the Capital Markets and Services Act 2007 (CMSA).

The SC also contended that further or in the alternative, Chan had procured Lim to acquire NICORP shares, in breach of section 188(2)(b) of the CMSA.

The act allegedly took place between the end of January 2012 and 1 February 2012.

The inside information was in relation to Chan’s intended purchase of NICORP shares from Crest Energy Sdn Bhd, which was a substantial shareholder of NICORP at the material time. The information was subsequently announced by NICORP to Bursa Malaysia on 8 February 2012.

In its suit, the SC has claimed for disgorgement of the theoretical profits amounting to RM25,447,500 and civil penalty of up to RM1 million against Chan.

Additionally, the SC is seeking an order to bar Chan from becoming a chief executive or director, or from being involved in the management of any public company for a period of five years from the date of judgment. An order barring Chan from trading on Bursa Malaysia for the same period is also sought.

Lim, who had acquired NICORP shares on 3 and 8 February 2012 while in possession of the inside information, had entered into a regulatory settlement with the SC on 22 December 2023 for a breach of section 188(2)(a) of the CMSA.

Insider trading is a serious misconduct in the capital market. The continuous enforcement by the SC demonstrates its commitment to address misconduct and abuses affecting the integrity of the capital markets.