The Kuala Lumpur Sessions Court today convicted Dato’ Chin Chan Leong and Hiew Yoke Lan for their involvement in the manipulation of Fountain View Development Bhd shares.
This is the second conviction for market manipulation which the Securities Commission Malaysia (SC) has successfully prosecuted.
Dato’ Chin, 57, a former director of Fountain View, pleaded guilty to the offence under section 84(1) of the Securities Industry Act 1983 for creating a misleading appearance of active trading of Fountain View shares on Kuala Lumpur Stock Exchange (now known as Bursa Malaysia Securities Bhd) through at least 20 CDS accounts which were beneficially owned by the accused through the companies that he controlled.
Hiew, 48, a former remisier, also pleaded guilty to abetting Dato’ Chin in the above offence, thereby committed an offence under section 84(1) read together with section 122C(c) of the Securities Industry Act 1983. Hiew was responsible for executing and relaying orders for the sale and purchase of the shares during the material time to various stockbroking firms. The offences were committed between 18 November 2003 and 20 January 2004.
The Sessions Court sentenced Dato’ Chin to a fine of RM1.3 million (in default 13 months imprisonment) as well as a one-day imprisonment under section 88B of the same Act while Hiew was fined RM1 million (in default 10 months imprisonment).
The SC has been proactively pursuing this and other market misconduct cases (such as manipulation, market rigging and insider trading) because such activities severely undermine investor confidence and tarnishes the reputation of the Malaysian capital market. The SC will continue to be vigilant and take whatever action necessary to protect investors and to maintain a fair and orderly capital market.