KASUS HUKUM PASAR MODAL DI MALAYSIA 2014

Criminal Prosecution
No.

Nature of
Offence

Offender(s)

Facts of Case

Sentence

Chng Poh @ Chng Chong

Poh was charged with 58
counts of insider trading under
section 188(2)(a) of the Capital
Markets and Services Act
(CMSA) 2007.He was alleged
to have traded in the shares of
Malaysia Pacific Corporation
Berhad (MPAC) while in
possession of inside
information relating to a multimillion ringgit joint venture
between Oriental Pearl City
Properties Sdn Bhd, a wholly
owned subsidiary of MPAC
and AmanahRaya Development
Sdn Bhd, a wholly owned
subsidiary company of Amanah
Raya Berhad.

Chng Poh @ Chng Chong Poh

was charged on 10 January 2014.

Criminal Prosecution Initiated Persons Charged

1.

Insider trading

Chng Poh @ Chng Chong

Poh

Criminal Prosecution Initiated Persons Fined & Jailed

2.

Market
manipulation

Wong Chee Kheong

Bun Lit Chun

Both Wong and Bun were

charged, in furtherance of their
common intention with one Ng
Chong Yeng, for creating a
misleading appearance as to the
price of Suremax Group
Berhad (Suremax) shares on
Bursa Malaysia through 153
central depository securities
accounts.They were also
charged in the alternative for
creating a misleading
appearance as to active trading
in Suremax shares through
transactions that did not
involve any change in
beneficial ownership on Bursa
Malaysia through 9 central
depository securities accounts.

Wong Chee Kheong and Bun Lit

Chun were charged on 25
October 2005.On 7 January
2011, Wong Chee Kheong and
Bun Lit Chun were convicted by
the Sessions Court on the
Alternative Charge.On 12
January 2011, Wong Chee
Kheong was sentenced to 24
months imprisonment and a fine
of RM3 million (in default 6
months imprisonment). Bun Lit
Chun was sentenced to 3 months
imprisonment and a fine of RM2
million (in default 6 months
imprisonment).On 18 March
2014, the Kuala Lumpur High
Court affirmed the conviction
and dismissed the appeal by both
Wong and Bun.
On 27 March 2014, Buns appeal
to the High Court against
sentence was allowed in part
where the sentence of
imprisonment was reduced from
3 months to 1 day. The fine of
RM2 million imposed by the
Sessions Court was affirmed.
On 9 April 2014, the High Court
dismissed Wongs appeal against
sentence and affirmed the
sentence of 24 months

imprisonment and a fine of RM3

million (in default 6 months
imprisonment) imposed by the
Sessions Court .
Both Wong and Bun have filed
notices of appeal to the Court of
Appeal. The Prosecution has
filed a cross appeal against the
reduced sentence of Bun.

Administrative Actions

Administrative Actions in 2014

No.

Nature of
Misconduct

Parties Involved

Brief description of
misconduct

Action Taken

Date
of
Action

1.

Breach of Section 356 of the

Capital Markets and
Services Act 2007 for
failure to comply with the
SCs Guidelines on
Compliance Function For
Fund Management
Companies.

Capital Dynamics
Asset Management
Sdn Bhd (a Capital
Markets Services
Licence holder
carrying out regulated
activities of fund
management )

Failure to disclose the

deferred performance fees
chargeable annually in the
statements issued to its clients

Directive to disclose to
its clients the chargeable
performance fees to date,
in the statement issued to
its clients by 31
December 2014

29
September
2014

2.

Breach of Section 356 of the

Capital Markets and
Services Act 2007 for
failure to comply with the
SCs Licensing Handbook
and Guidelines on
Compliance Function For
Fund Management
Companies

Apex Investment

Services Berhad (a
Capital Markets
Services Licence
holder carrying out
dealing in securities

and fund
management)

Breach of Section 356 of the

Capital Markets and
Services Act 2007 for
failure to comply with the
SCs Licensing Handbook

AmInvestment Bank
Berhad (a Capital
Markets Services
Licence holder
carrying out dealing in
securities and fund
management)

3.

Allowing unlicensed
persons to deal in securities
by facilitating referral
arrangement for its unit trust
consultants; and

Penalty of RM100,000

15 May
2014

Penalty of RM100,000

29
January
2014

Receiving rebates out of

clients transactions and not
directing it back to clients
accounts.
Allowing unlicensed persons
to carry out activities of a
licensed person in soliciting
fund management clients,
including receiving trading
orders directly from fund
management clients.

Civil Actions and Regulatory Settlements

o.

Offence

1.

False trading and market

rigging transaction
[s. 84 of the SIA]

Defendants

Kenneth Vun @ Vun Yun Liun

Teng Choo Teik

Simon Ling Siang Hock

Stock market manipulation

[s.85 of the SIA]

Lye Pei Ling

Brief facts of the case

On 22 July 2014, the SC filed a civil suit against the 7
defendants. The SC is seeking, among others:
A declaration that the defendants engaged in false
trading and market rigging transactions in respect of
DVM shares from 14 March 2006 until 21 March 2006;

Chuah Hock Soon

Choong Lay Ti

Gui Boon Huat

A declaration that the defendants engaged in stock

market manipulation in respect of DVM shares from 14
March 2006 until 21 March 2006;

A declaration that all profits earned by each of the

defendants by reason of their false trading and market
rigging transactions and stock market manipulation of
DVM shares are held on constructive trust for the
benefit of the affected investors;

An order that all assets and properties of each of the

defendants be traced and/or followed, and thereafter
paid over to the Commission for the purpose of
compensating any materially affected investors of
DVM shares;

General and/or aggravated and/or exemplary damages

against all the defendants;

Special damages;

Civil penalty of RM1,000,000 against each of the

defendants for breach of section 84 and 85 of the SIA;

Interest;

An injunction to restrain each of the defendants from

trading in any counter on Bursa Malaysia for a period
of 5 years;

An order that each of the defendants be barred from

being a director of any public listed company for a
period of 5 years;

Costs.

Regulatory Settlement

Regulatory settlement with Wong Thean Soon

1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.

On 26 September 2014, Wong Thean Soon (TS Wong), entered into a settlement with the Securities Commission Malaysia (SC) in
the sum of RM7,000,000 when he agreed without admission or denial of liability, to settle a claim that the SC was proposing to institute
against him and 13 others for the manipulation of MyEG Services Berhad shares between 16 January 2007 and 24 April 2007, contrary
to section 84(1) of the Securities Industry Act 1983. The 13 other individuals involved in the alleged manipulation were:
Chia Hang Kian
Choo Weng Wah
Tan Men Siong
Ng Hong Sing
Chung Siang Hien
Ng Wee Kiat
Tan Chiu Keong
Tan Khei Chuan
R. Mahalingam a/l A. Renganathan
Hon Kok Seng
Mah Hoong Meng
Ng Wee Lun
Jayakumar a/l Panneer Selvam
The settlement was reached following a letter of demand sent by the SC pursuant to its civil enforcement powers under the securities
laws.

Regulatory settlement with Chua Siow Leng

On 8 August 2014, the SC entered into a settlement with Chua Siow Leng in the sum of RM1,099,231.44 when he agreed without
admission or denial of liability, to settle a claim that the SC was proposing to institute against him for insider trading in the shares of
WCT Berhad between 2 January and 5 January 2009, contrary to section 188(2) of the Capital Markets and Services Act 2007 (CMSA).
The settlement was reached following a letter of demand sent by the SC pursuant to its civil enforcement powers under the securities
laws, where the sum Chua was required to disgorge was equivalent to three times the difference between the price at which the shares
were disposed and the price at which they would have been likely to have been disposed of at the time of the disposal, if the information
had been generally available. In accordance with section 201(7) of the CMSA, the amount recovered from Chua will be used first to
reimburse the SC for all costs of investigations and proceedings. Any remaining amount if available will be used to compensate the
buyers who bought their WCT Berhad shares before the information became generally available.

Regulatory settlement with Tam Kin Kok

On 8 August 2014, the SC entered into a settlement with Tam Kin Kok in the sum of RM505,095.72 when he agreed without admission
or denial of liability, to settle a claim that the SC was proposing to institute against him for insider trading in the shares of WCT Berhad
between 30 December 2008 and 2 January 2009, contrary to section 188(2) of the Capital Markets and Services Act 2007 (CMSA). The
settlement was reached following a letter of demand sent by the SC pursuant to its civil enforcement powers under the securities laws,
where the sum Tam was required to disgorge was equivalent to three times the difference between the price at which the shares were
disposed and the price at which they would have been likely to have been disposed of at the time of the disposal, if the information had
been generally available. In accordance with section 201(7) of the CMSA, the amount recovered from Tam will be used first to
reimburse the SC for all costs of investigations and proceedings. Any remaining amount if available will be used to compensate the
buyers who bought their WCT Berhad shares before the information became generally available.

Regulatory settlement with Mohd Irtiza Azmel Bin Mohd Ismail and Mohd Ismail Bin Yahya
On 11 August 2014, the SC entered into a settlement with Mohd Irtiza Azmel bin Mohd Ismail and Mohd Ismail Bin Yahya in the sum
of RM22,000 when they agreed without admission or denial of liability, to settle a claim that the SC was proposing to institute against
them for insider trading in the shares of Boustead Properties Berhad (Boustead) on 14 May 2008, contrary to section 188(2) of the
Capital Markets and Services Act 2007 (CMSA). The settlement was reached following letters of demand sent by the SC pursuant to its
civil enforcement powers under the securities laws, where the sums both of them were required to disgorge was equivalent to three times
the difference between the price at which the shares were acquired and the price at which they would have been likely to have been
acquired at the time of the acquisition, if the information had been generally available. In accordance with the provisions of section
201(7) of the CMSA, the amount recovered from them will be used first to reimburse the SC for all costs of investigations and
proceedings. Any remaining amount if available will be used to compensate the sellers who sold their Boustead shares before the
information became generally available.

Regulatory Settlement with Vincent Ng Chee Yee

On 20 February 2014, Vincent Ng Chee Yee (Vincent Ng) entered into a settlement with the SC when he agreed without admission or
denial of liability, to settle a civil claim that the SC was proposing to institute against him with respect to the manipulation of DRBHicom Berhad shares on 25 July 2011, contrary to section 176(1)(b) of the Capital Markets and Services Act 2007 (CMSA).The
settlement of RM200,000 was reached following a letter of demand sent by the SC pursuant to its civil enforcement powers under the
securities laws. The amount recovered from this settlement will be applied in accordance with section 200 of the CMSA.Earlier in
December 2013, OCBC Bank (M) Berhad (OCBC) entered into a settlement with the SC for the sum of RM2,475,000 following a letter
of demand sent by the SC pursuant to its civil enforcement powers under the securities laws. The sum of RM2,475,000 was equivalent to
three times the pecuniary gain of RM825,000 which OCBC had made as a result of the breach.

KASUS HUKUM PASAR MODAL DI MALAYSIA 2013

No. Nature of Offence

Offender(s)

Facts of Case

Sentence

Criminal Prosecution Initiated Persons Charged

1.

Furnishing false statement

to Bursa Malaysia
Securities Berhad

Koh Tee Jin

Lee Han Boon
Saipuddin Lim
bin Abdullah

Koh Tee Jin, Saipuddin Lim and Lee Han Boon were
each charged with five counts of furnishing false
statements relating to the revenue of Axis
Incorporation Berhad (Axis) to Bursa Malaysia.
The charges which were preferred under section
122B(b)(bb) of the Securities Industry Act 1983
(SIA) and section 369(b)(B) of the Capital Markets
and Services Act 2007 (CMSA) were in relation to
false statements contained in Axis four quarterly
reports for the financial year 2007 and the quarter
ending 31 March 2008

Koh Tee Jin, Lee Han

Boon and Saipuddin Lim
were charged on 21
March 2013.

2.

Abetting the furnishing of

a false statement to Bursa
Malaysia Securities
Berhad

Lee Koon Huat

Lee Koon Huat was charged with four counts of

abetting Axis Incorporation Berhad (Axis) in
furnishing false statements relating to the revenue of
Axis to Bursa Malaysia. The charges which were
preferred under section 122C(c) read together with
section 122B(a)(bb) of the Securities Industry Act
1983 (SIA) were in relation to false statements
contained in Axis four quarterly reports for the
financial year 2007.

Lee Koon Huat was

charged on 26 March
2013.

3.

Furnishing false statement

to Bursa Malaysia
Securities Berhad

Tan Han Kook and Ching Siew Cheong were each

charged with seven and eight counts respectively of
furnishing false statements relating to the revenue of
Silver Bird Group Berhad to Bursa Malaysia. The
charges which were preferred under section
369(b)(B) of the Capital Markets and Services Act
2007 (CMSA) were in relation to false statements
contained in Silver Bird Group Berhads quarterly
reports for financial years 2010 and 2011.

Tan Han Kook and

Ching Siew Cheong were
charged on 11 September
2013.

Tan Han
Kook
Ching Siew
Cheong

Outcome of Criminal Prosecution Persons Fined

1.

Submission of misleading
statement to the SC

Mohamed bin
Abdul Wahab

On 12 March 2003, Mohamed bin Abdul Wahab was

charged under s.47C(5) of the Securities Industry
Act 1983 (SIA) for having abetted Metrowangsa
Asset Management Sdn Bhd (Metrowangsa) in using
RM50 million of Lembaga Tabung Hajis funds to
pay Mimos Berhad, another client of
Metrowangsa.He was also charged with two counts
of knowingly authorizing the furnishing of
misleading statements to the SC in Metrowangsas
semi-annual report from 2000 to 2001. The charges
which were preferred under s.122B(b)(cc) of the SIA
were in relation to the amount of funds managed by
Metrowangsa in 2000 and 2001.

On 1 April 2009, the

Sessions Court found
Mohamed bin Abdul
Wahab guilty of the 1st
charge under s.47C(5) of
the SIA. He was ordered
to pay a fine of
RM200,000, in default
one year
imprisonment. However,
the Sessions Court
acquitted Mohamed bin
Abdul Wahab of the 2nd
and 3rd charges relating
to the furnishing of
misleading statements to
the SC. The Prosecution
filed an appeal against
the acquittal to the High
Court. On 14 February
2013, the High Court
dismissed the appeal by
the Prosecution and
affirmed Mohameds
acquittal of the said two

No. Nature of Offence

Offender(s)

Facts of Case

Sentence
charges.On 19 February
2013, the Prosecution
filed an appeal to the
Court of Appeal against
the decision of the High
Court.
On 13 December 2013,
the Court of Appeal
reversed the decision of
the High Court and
found Mohamed guilty
of the 2nd and 3rd
charges. The Court of
Appeal sentenced him to
a fine of RM 500,000 for
each charge, in default of
payment, one year
imprisonment.

2.

Holding out as a
representative in respect
of a regulated activity,
namely trading in
futures contracts,
without holding a
Capital Markets Services
Representatives
Licence.

Carrying on a business
in a regulated activity,
namely trading in
futures contracts,
without holding a
Capital Markets Services
Licence.

Zamani bin
Hamdan

Zamani Hamdan was, at the material time, a director

of Rantau Simfoni Sdn Bhd. He was charged with
holding himself out as a representative of a Capital
Markets Services Licence holder to trade in futures
contracts without a licence.
Zamani was also charged in the alternative for
carrying on the business of trading in futures
contracts without a license, through his company,
Rantau Simfoni.

Zamani Hamdan was

charged on 28 October
2011. On 30 April 2013,
Zamani was convicted by
the Sessions Court on the
alternative charge of
carrying on the business
of trading in futures
contracts without holding
a Capital Markets
Services Licence through
his company Rantau
Simfoni Sdn Bhd. The
Sessions Court sentenced
him to a fine of RM1
million. Zamani has filed
an appeal against the
conviction and sentence
on 2 May 2013 while the
Prosecution filed an
appeal against the
sentence on 8 May 2013.

Outcome of Criminal Prosecution Persons Fined and Jailed

1.

Engaging in an act which

operated as a deceit

Ashari Rahmat

Ashari, an operating officer of MIH, was charged in

2000 for engaging in an act which operated as a
deceit on UPA Corporation Berhads IPO exercise
by switching successful applications with those not
put through the balloting process.

Ashari was convicted

after a full trial on 25
March 2009 by the
Sessions Court Kuala
Lumpur.He was
sentenced to 3 years
imprisonment and a fine
of RM1 million (in
default 1 year
imprisonment).On 4
January 2012, the High
Court confirmed his
conviction and the fine
sentence of RM1 million
was ordered to be
paid.On 5 March 2012,
the Court of Appeal
confirmed the said
conviction and sentence.

No. Nature of Offence

Offender(s)

Facts of Case

Sentence

2.

Wahid Ali
Kassim Ali

Wahid Ali, the director of Aiwanna Manage Assets

Sdn Bhd (Aiwanna) was charged on 19 October
2005 with three counts for omitting to state a
material fact which was misleading, pertaining to the
investment of Aiwannas client, Eastern Pacific
Industrial Corporation Bhd (EPIC), in the purchase
of bonds.
The statements were contained in the updates of
EPICs RM5 million investment when in fact the
moneys had already been dissipated.

On 30 June 2009, Wahid

Ali was found guilty of
all three charges under
the Section 87A(c) of the
Securities Industry Act
1983. To each charge, he
was sentenced to oneyear imprisonment (to be
served concurrently) and
a fine of RM1 million (in
default of the total RM3
million fine, one-year
imprisonment). On 14
January 2013, the High
Court dismissed Wahid
Alis appeal against
conviction and sentence
and upheld the decision
of the Sessions Court.
Pending his appeal to the
Court of Appeal against
the said High Court
decision, Wahid Ali was
ordered to execute a
bond of RM1 million to
stay the execution of the
sentences.

Misleading statements in
connection with the
purchase of securities

Outcome of Criminal Prosecution Persons Acquitted

1.

Submission of misleading
information to the SC

Mohamed bin
Abdul Wahab

On 12 March 2003, Mohamed bin Abdul Wahab was

charged with three charges under the SIA. The first
charge was preferred under s.47C(5) of the SIA
where he was charged with having abetted
Metrowangsa in using RM50 million of Lembaga
Tabung Hajis moneys to pay another of its
clients.He was also charged with two charges under
s.122B(b)(cc) of the SIA for knowingly authorizing
the furnishing of misleading statements to the SC in
Metrowangsas semi-annual report from 2000 to
2001.The misleading statements therein were in
relation to the amount of funds managed by
Metrowangsa in 2000 and 2001.

On 1 April 2009, the

Sessions Court found
Mohamed bin Abdul
Wahab guilty of the 1st
charge under s.47C(5) of
the SIA. He was ordered
to pay a fine of
RM200,000, in default
one year
imprisonment.However,
Mohamed bin Abdul
Wahab was found not
guilty and was acquitted
of the 2nd and 3rd
charges relating to
furnishing of misleading
statements to the SC and
was acquitted and
discharged by the
Sessions Court on the
same day. The
Prosecution filed an
appeal against the
acquittal to the High
Court.On 14 February
2013, the High Court
dismissed the appeal by
the Prosecution and
affirmed Mohamed bin
Abdul Wahabs acquittal
of the said two
charges.The Prosecution
had on 19 February 2013
filed an appeal to the

No. Nature of Offence

Offender(s)

Facts of Case

Sentence
Court of Appeal against
the decision of the High
Court.

2.

Illegal fund management

activities

Anuar Abdul
Aziz

Anuar was charged with carrying out the functions of

a fund managers representative for Corporate Eight
Asset Management Sdn Bhd (now known as Oasis
Asset Management Sdn Bhd) without a licence.

Anuar was charged on 2

September 2003. He was
acquitted by the Sessions
Court on 20 May 2010.
On 12 October 2012, the
High Court dismissed the
appeal by the
Prosecution. The
Prosecution filed an
appeal to the Court of
Appeal against the
acquittal of Anuar at the
end of Prosecution
stage.On 15 August
2013, the Court of
Appeal dismissed
Prosecutions appeal and
upheld the decision by
the Sessions Court and
High Court.

Low, executive chairman of Repco Holdings Berhad

(Repco), was charged for manipulating the price of
Repco shares on the KLSE on 3 December 1997.

Low was charged on 18

September 1999.At the
end of the prosecution
case, Low was acquitted
and discharged by the
Sessions Court Kuala
Lumpur on 14 November
2006.On 15 October
2010, the High Court
dismissed the
Prosecutions appeal
against the acquittal.On
28 February 2013, the
Court of Appeal
unanimously allowed the
Prosecutions appeal and
set aside the
Respondents acquittal.
The Respondent was
ordered to enter his
defence to the said
charge under section
84(1).The case has been
remitted to the Sessions
Court for retrial.

Outcome of Criminal Prosecution

1.

Market manipulation

Low Thiam
Hock

Civil Actions and Regulatory Settlements

Civil Actions
No.
1.

Offence

Defendants

False trading and market rigging

transaction

[s. 84 of the SIA]

Stock market manipulation
[s.85 of the SIA]

Brief facts of the case

Simon Ling Siang Hock

Lye Pei Ling

Chuah Hock Soon

On 22 July 2014, the SC filed a civil suit

against the 7 defendants. The SC is seeking,
among others:
A declaration that the defendants engaged in
false trading and market rigging transactions
in respect of DVM shares from 14 March
2006 until 21 March 2006;

Choong Lay Ti

Gui Boon Huat

A declaration that the defendants engaged in

stock market manipulation in respect of
DVM shares from 14 March 2006 until 21
March 2006;

A declaration that all profits earned by each

of the defendants by reason of their false
trading and market rigging transactions and
stock market manipulation of DVM shares
are held on constructive trust for the benefit
of the affected investors;

An order that all assets and properties of

each of the defendants be traced and/or
followed, and thereafter paid over to the
Commission for the purpose of
compensating any materially affected
investors of DVM shares;

General and/or aggravated and/or exemplary

damages against all the defendants;

Special damages;

Civil penalty of RM1,000,000 against each

of the defendants for breach of section 84
and 85 of the SIA;

Interest;

An injunction to restrain each of the

defendants from trading in any counter on
Bursa Malaysia for a period of 5 years;

An order that each of the defendants be

barred from being a director of any public
listed company for a period of 5 years;

Costs.

Kenneth Vun @ Vun Yun Liun

Teng Choo Teik

Regulatory Settlements

Regulatory settlement with Wong Thean Soon

1.

On 26 September 2014, Wong Thean Soon (TS Wong), entered into a settlement with the Securities Commission Malaysia (SC)
in the sum of RM7,000,000 when he agreed without admission or denial of liability, to settle a claim that the SC was proposing to
institute against him and 13 others for the manipulation of MyEG Services Berhad shares between 16 January 2007 and 24 April 2007,
contrary to section 84(1) of the Securities Industry Act 1983. The 13 other individuals involved in the alleged manipulation were:
Chia Hang Kian

2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.

Choo Weng Wah

Tan Men Siong
Ng Hong Sing
Chung Siang Hien
Ng Wee Kiat
Tan Chiu Keong
Tan Khei Chuan
R. Mahalingam a/l A. Renganathan
Hon Kok Seng
Mah Hoong Meng
Ng Wee Lun
Jayakumar a/l Panneer Selvam
The settlement was reached following a letter of demand sent by the SC pursuant to its civil enforcement powers under the securities
laws.

Regulatory settlement with Chua Siow Leng

On 8 August 2014, the SC entered into a settlement with Chua Siow Leng in the sum of RM1,099,231.44 when he agreed without
admission or denial of liability, to settle a claim that the SC was proposing to institute against him for insider trading in the shares of
WCT Berhad between 2 January and 5 January 2009, contrary to section 188(2) of the Capital Markets and Services Act 2007
(CMSA). The settlement was reached following a letter of demand sent by the SC pursuant to its civil enforcement powers under the
securities laws, where the sum Chua was required to disgorge was equivalent to three times the difference between the price at which
the shares were disposed and the price at which they would have been likely to have been disposed of at the time of the disposal, if the
information had been generally available. In accordance with section 201(7) of the CMSA, the amount recovered from Chua will be
used first to reimburse the SC for all costs of investigations and proceedings. Any remaining amount if available will be used to
compensate the buyers who bought their WCT Berhad shares before the information became generally available.

Regulatory settlement with Tam Kin Kok

On 8 August 2014, the SC entered into a settlement with Tam Kin Kok in the sum of RM505,095.72 when he agreed without
admission or denial of liability, to settle a claim that the SC was proposing to institute against him for insider trading in the shares of
WCT Berhad between 30 December 2008 and 2 January 2009, contrary to section 188(2) of the Capital Markets and Services Act
2007 (CMSA). The settlement was reached following a letter of demand sent by the SC pursuant to its civil enforcement powers under
the securities laws, where the sum Tam was required to disgorge was equivalent to three times the difference between the price at
which the shares were disposed and the price at which they would have been likely to have been disposed of at the time of the disposal,
if the information had been generally available. In accordance with section 201(7) of the CMSA, the amount recovered from Tam will
be used first to reimburse the SC for all costs of investigations and proceedings. Any remaining amount if available will be used to
compensate the buyers who bought their WCT Berhad shares before the information became generally available.

Regulatory settlement with Mohd Irtiza Azmel Bin Mohd Ismail and Mohd Ismail Bin Yahya
On 11 August 2014, the SC entered into a settlement with Mohd Irtiza Azmel bin Mohd Ismail and Mohd Ismail Bin Yahya in the sum
of RM22,000 when they agreed without admission or denial of liability, to settle a claim that the SC was proposing to institute against
them for insider trading in the shares of Boustead Properties Berhad (Boustead) on 14 May 2008, contrary to section 188(2) of the
Capital Markets and Services Act 2007 (CMSA). The settlement was reached following letters of demand sent by the SC pursuant to
its civil enforcement powers under the securities laws, where the sums both of them were required to disgorge was equivalent to three
times the difference between the price at which the shares were acquired and the price at which they would have been likely to have
been acquired at the time of the acquisition, if the information had been generally available. In accordance with the provisions of
section 201(7) of the CMSA, the amount recovered from them will be used first to reimburse the SC for all costs of investigations and
proceedings. Any remaining amount if available will be used to compensate the sellers who sold their Boustead shares before the
information became generally available.

Regulatory Settlement with Vincent Ng Chee Yee

On 20 February 2014, Vincent Ng Chee Yee (Vincent Ng) entered into a settlement with the SC when he agreed without admission or
denial of liability, to settle a civil claim that the SC was proposing to institute against him with respect to the manipulation of DRBHicom Berhad shares on 25 July 2011, contrary to section 176(1)(b) of the Capital Markets and Services Act 2007 (CMSA).The
settlement of RM200,000 was reached following a letter of demand sent by the SC pursuant to its civil enforcement powers under the
securities laws. The amount recovered from this settlement will be applied in accordance with section 200 of the CMSA.Earlier in
December 2013, OCBC Bank (M) Berhad (OCBC) entered into a settlement with the SC for the sum of RM2,475,000 following a
letter of demand sent by the SC pursuant to its civil enforcement powers under the securities laws. The sum of RM2,475,000 was

equivalent to three times the pecuniary gain of RM825,000 which OCBC had made as a result of the breach.

Administrative Actions

Administrative Actions in 2013

No.

Nature of
Misconduct

Parties
Involved

Brief description of
misconduct

Action Taken

Date
of
Action

1.

Breach of Section 215

(3) of the Capital
Markets and Services
Act 2007 (CMSA)

Ranhill Energy
and Resources
Berhad

Failure to forthwith inform the SC,

when party involved knew or became
aware that any statement or
information which has been
submitted to the SC might be false,
misleading or materially incomplete,
before the proposal in the application
has been fully effected, carried out or
implemented.

Penalty of RM200,000

7
November
2013

2.

Breach of Section 215

(3) of the Capital
Markets and Services
Act 2007 (CMSA)

Tan Sri Hamdan

Mohamad
(Promoter,
Executive
Director/ President
and Chief
Executive of
Ranhill Energy
and Resources
Berhad)

Failure to forthwith inform the SC, 1.

when party involved knew or became
2.
aware that any statement or
information which has been
submitted to the SC might be false,
misleading or materially incomplete,
before the proposal in the application
has been fully effected, carried out or
implemented.

Reprimand
Penalty of RM300,000

7
November
2013

3.

Breach of Section
273(1)(d) and (e) of
the Capital Markets
and Services Act
2007 (CMSA)

Universal Trustee
(Malaysia) Berhad

Failure to inform the SC of the

issuers failure to remedy breaches
of the trust deed; and

Reprimand

15 July
2013

Failure to call for a meeting of

bondholders and placing before
such meeting, proposals for the
protection of the interest of the
bondholders as appropriate and
obtain their directions in relation to
the same.

4.

Breach of Section
33B of the Securities
Commission Act
1993 and Paragraph
6(4) of the Malaysian
Code on Take-Overs
and Mergers 1998.

( Superior PavillionFailure of the Concert Parties to carry

out a mandatory offer for the
a Sdn Bhd;
remaining shares in Kumpulan Jetson
)
Berhad
( SM Nasarudin SM
b Nasimuddin;
)
( SM Faliq SM
c Nasimuddin; and
)
( Dato Ahmad bin
d Ibrahim
) (collectively
referred as

( Reprimand; and
a
)
( Penalty of
b RM500,000
)

20 May
2013

Concert Parties)

5.

Breach of Section 355

of the Capital
Markets and Services
Act 2007 for failure
to comply with:

Okachi (Malaysia)
Sdn Bhd (a Capital
Markets Services
Licence holder
carrying out
dealing in
derivatives)

(a) the Securities

Commissions:
Guidelines on
Prevention of
Money Laundering
& Terrorism
Financing for
Capital Market
Intermediaries
(AML
Guidelines);

Licensing
Handbook;

Compliance
Guidelines for
Futures Brokers;
and

(a) Breach of provisions of the

AML Guidelines:
Poor adoption of KnowYour-Client requirements

Failure to develop an
effective system to detect
suspicious transactions; and

Failure to conduct adequate

staff training and perform
independent audit on AntiMoney Laundering/Counter
Terrorism Financing
compliance programmes.

(b) Absence of any evaluative and

supervisory review on the
compliance of the AML
Guidelines.

( Penalty of
a RM200,000
)

10 May
2013

( Directive to attend
b at least two (2)
) Anti-Money
Laundering and
Anti-Terrorism
Financing Act 2001
training
programmes within
the next twelve (12)
months for Okachi
Sdn Bhds Board of
Directors and
Compliance
Officer.

(b) the Rules of the

Bursa Malaysia
Derivatives Berhad.

6.

Breach of Section 356

of the Capital
Markets and Services
Act 2007 for failure
to comply with the
Securities
Commissions
Guidelines on:

TA Securities
Holdings Berhad
(a Capital Markets
Services Licence
holder carrying out
dealing in
securities)

( Prevention of Money
a Laundering and
) Terrorism Financing for
Capital Market
Intermediaries; and
( Market Conduct and
b Business Practices for
) Stockbrokers and
Licensed
Representatives

(a) Failure to have and implement

an effective system to detect
and report suspicious
transactions
(b) Failure to provide adequate
employee training and to
conduct independent audit on
compliance programmes
(c) Failure to have in place
adequate Customer Due
Diligence processes and
know-your-client
requirements

Penalty of RM150,000

25 April
2013