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 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.

o.
1.

Offence
False trading and market
rigging transaction

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.

Defendants

Kenneth Vun @ Vun Yun Liun

Teng Choo Teik

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

[s. 84 of the SIA]

Stock market manipulation

[s.85 of the SIA]

and market rigging transactions in respect of DVM shares

from 14 March 2006 until 21 March 2006;

Simon Ling Siang Hock

Lye Pei Ling

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.