SC charges group MD of TH Group and 4 others for insider trading

29 January 2015 | Kuala Lumpur

The Securities Commission Malaysia (SC) today charged five individuals with insider trading offences under Section 188(2)(a) of the Capital Markets and Services Act 2007.

Lei Lin Thai was charged at the Kuala Lumpur Sessions Court for acquiring 2,766,600 units of TH Group Berhad (TH Group) shares whilst in possession of non-public information between 5 June 2008 and 22 September 2008. Lei was at the material time, the Group Managing Director of TH Group Berhad.

Lei, who faces a total of 53 charges, is said to have acquired the TH Group shares via accounts belonging to four other individuals, Chung Yin Mui, Ng Lai Sim, Wong Jun Mooi and Lau Sin Ling. The SC also preferred charges against Chung, Ng, Wong and Lau for abetting Lei Lin Thai by allowing their trading accounts to be used by Lei for the purpose of acquiring the said shares.

The charges against Lei, Chung, Wong and Lau were read out before Sessions Court Judge Mat Ghani Abdullah while the charges against Ng were before Sessions Court Judge Abdul Rashid Daud. Lei was granted bail of RM300,000, whilst Chung, Ng, Wong and Lau each posted bail sums of RM100,000. All claimed trial against the respective charges preferred. The cases will be called before Kuala Lumpur Sessions Court 1 on 3 March 2015.

The SC alleged that the non-public information referred to in all the charges related to the proposed privatisation of TH Group Berhad via a Selective Capital Repayment exercise announced on 29 September 2008.

Insider trading is punishable with imprisonment term not exceeding 10 years and a fine of not less than RM1 million.

SC’s Director of Enforcement, Ahmad Fairuz Zainol Abidin stated that the SC will not hesitate to take action against insider trading to safeguard the integrity of the market. “Those who are privy to inside information should not take advantage of it and those who aid or facilitate any abuse of such information must realise that they do so at the risk of inviting SC’s scrutiny,” he said.

SECURITIES COMMISSION MALAYSIA