Lau, 43, formerly Head of Dealing at CIMB Investment Bank, Melaka, was charged with three charges under Section 179(b) of the Capital Markets and Services Act 2007 (CMSA) for defrauding three investors into depositing monies totaling RM808,000 for fictitious bond investments.

He instead utilised the investors’ monies for purchasing shares in trading accounts belonging to other individuals not connected to the investors. The offence took place between February 2013 and April 2014.

If convicted, Lau faces a jail term not exceeding 10 years and a fine of not less than RM1 million.

Separately, Lau also faced three charges under Section 4(1)(a) of the Anti-Money Laundering and Anti-Terrorism Financing Act 2001(AMLATFA) for engaging in money laundering during the same period. This offence carries a maximum fine of RM5 million or a jail term not exceeding five years, or both, if convicted.

Lau claimed trial to all six charges in two separate courts and was granted bail at RM200,000 in total.

For the charges under the CMSA, Sessions Court judge Puan Suzana binti Husin granted bail at RM100,000 with one surety. The accused was also ordered to surrender his passport to the court and report to the SC’s Investigating Officer on a monthly basis.

As for the charges under AMLATFA, Sessions Court judge Puan Norma binti Ismail similarly granted bail at RM100,000 with one surety. The court imposed similar additional bail conditions as the earlier court.

The SC would like to remind investors to exercise caution before parting with their monies and when considering investment opportunities.