Pillay, 44, and currently a Director of Linear Corporation Berhad, was charged under section 87A(b) read together with section 122C(c) of the Securities Industry Act 1983 for abetting Alan to commit an act that operated as a fraud on LFE. The fraud involved the use of RM9 million of LFE’s monies to finance Alan’s purchases of LFE shares pursuant to a private placement and restricted offer of LFE shares. The alleged act is said to have been committed between 4 January 2007 and 8 February 2007. If convicted, Pillay is liable to a fine of not less than RM1 million and imprisonment for a term not exceeding 10 years.
Apart from the securities law breach, Pillay was also charged under section 409 read together with section 109 of the Penal Code for abetting Alan to commit criminal breach of trust of a further RM9.99 million of LFE’s monies. Another three charges were also preferred against Pillay for abetting two other Directors of LFE in cheating EON Bank Berhad of RM3.96 million by supplying fictitious documents to enable the drawdown on LFE’s banking facilities.
Pillay pleaded not guilty to all five charges
Pillay was granted bail of RM1 million with 1 surety. He was further required to surrender all his travel documents to Court. The case will be mentioned on 27 July 2010.
SECURITIES COMMISSION MALAYSIA
