Justice Ong Chee Kwan ordered Toh to pay the SC RM2.36 million, the amount equal to three times the profits gained as a result of the insider trading. Toh is also required to pay a civil penalty of RM250,000 and costs of RM100,000 to the SC.
The High Court found that Toh had breached section 188(2)(a) of the Capital Markets and Services Act 2007. The suit was filed in 2021.
In addition to this, Toh is barred from being appointed as a director of a public listed company, and also restrained from trading in any securities on Bursa Malaysia for a period of five years beginning from the court judgement on 13 April 2023.
The breach occurred when Toh acquired 974,000 shares of HPI Resources Berhad (HPI) between March and June 2011, while in possession of material non-public information. The said information was in relation to Oji Paper Co. Ltd.'s proposed acquisition of HPI.
Insider trading is a major concern, and the SC will continue to monitor and take action against any suspicious conduct to protect the integrity of the capital market. The judgment sends a strong and clear message to the public that insider trading is a serious offence and that using inside information for personal gain will not be tolerated.
