SC Charges Founder of Three-A Resources Bhd and Five Others for Insider Trading Offences
25 October 2016|   Kuala Lumpur
Securities Commission Malaysia (SC) today charged six individuals with insider trading offences under Section 188 of the Capital Market and Services Act 2007 (CMSA).

Fang Chew Ham, 69, the founder and Managing Director of Three-A Resources Berhad (3A) together with his daughter and 3A Executive Director Fang Siew Yee, 36, were charged for communicating material non-public information to his brother and Non-executive Director Fong Chiew Hean. The offence under section 188(3)(a) CMSA was allegedly to have been committed on 5 September 2009.

Fong was also charged for nine counts of insider trading. He had acquired 891,000 units of 3A shares between 7 September and 5 October 2009 through two accounts at PM Securities Sdn Bhd while in possession of the said material non-public information.

The SC alleged that the material non-public information referred to in the charges relates to the collective venture between the businesses of 3A and Wilmar International Limited (Wilmar) which later materialised through a 20% private placement of the issued and paid-up share capital of 3A to Wilmar. The said information was announced to Bursa Malaysia on 5 October 2009.

Fang Chew Ham, Fang Siew Yee and Fong all claimed trial. Kuala Lumpur Sessions Court Judge Tuan Mat Ghani Abdullah fixed bail at RM250,000 for Fong, while bail for Fang Chew Ham and Fang Siew Yee was fixed at RM200,000. All three were ordered to surrender their passports to the court.

In a separate proceeding, SC also charged Fang Siew Yee under section 188(2)(a) CMSA for acquiring 2,720,000 units of 3A shares. The offence is said to have been committed between 27 August 2009 and 5 October 2009 while she was in possession of the said information.

Fang Siew Yee, who faces a total of eight charges, is said to have acquired 3A shares through the account of Tan Bee Geok, 62. Tan together with Fang Chew Ham and two OSK Investment Bank Bhd dealers at the material time, Chew Lian Foon, 38, and Ong Kok Aun, 55, were charged for abetting Fang Siew Yee in the commission of the offences under section 370(c) CMSA.

The charges against Fang Siew Yee, Fang Chew Ham, Tan, Chew and Ong were read out before Sessions Court Judge Tuan Zulqarnain bin Hassan. All five claimed trial. Fang Siew Yee was granted bail of RM250,000 while Fang Chew Ham, Tan, Chew and Ong were each granted bail of RM150,000. They were also ordered to surrender their passports except for Tan, who did not own one.

The offences under sections 188(2) and (3) of the CMSA 2007 are punishable with an imprisonment term not exceeding 10 years and a fine of not less than RM1 million.


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