RM141m Fictitious Sales: Former Directors convicted for reporting misleading info

11 October 2010 | Kuala Lumpur

The Kuala Lumpur Sessions Court today convicted Ang Sun Beng, former Managing Director, and Ang Soon An, a former Executive Director & Member of the Audit Committee of Welli Multi Corporation Berhad (WMCB), for furnishing misleading revenue figures which consisted of over RM141 million in fictitious sales in its audited financial statement for the year ended 31 December 2005.

WCMB was a listed corporation on the then Second Board of Bursa Malaysia. The misleading statement which was released to the market, made a significant impact on the market price of the company. In this case the share price dropped by 43% after news of the misleading statement became known to the public in 2008, after WMCB’s financial statement for 2005 was restated.

Brothers Ang Sun Beng and Ang Soon An, aged 64 and 60 respectively, pleaded guilty to the charges under Section 122B(a)(bb) read together with Section 122(1) of the Securities Industry Act 1983 (SIA).

Both Ang Sun Beng and Ang Soon An were convicted on the first charge under s122B(a)(bb) SIA 1983 read together with s122(1) of the same Act while three other charges under the same section were taken into consideration in sentencing. Sessions Court Judge, Puan Rozana bt Ali Yusof sentenced each of the accused to 1 day jail and a fine of RM400,000.00 in default of 1 year imprisonment.

WCMB (later known as Energreen Corporation Berhad) was delisted on 17 August 2009.

SECURITIES COMMISSION MALAYSIA