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Bursa Malaysia reprimands, strikes off TA Securities dealer
12 August 2014
PETALING JAYA: Bursa Malaysia Securities Bhd has publicly reprimanded, imposed a fine of RM360,000 and ordered to strike off Oh Kok Boon, a dealer, for manupulating dealing activities in six counters.
He was found to have made manipulative dealings in Biosis Group Bhd, Metronic Global Bhd, Ariantec Global Bhd, Luster Industries Bhd, Harvest Court Industries Bhd and Naim Indah Corp Bhd.
Oh was a commissioned dealer's representative at TA Securities Holdings Bhd main office at the time of breach.
He was found engaged in numerous manipulative or false dealing activities over a period of time in the accounts of several clients involving clients who were his family members as well.
Oh was said to have bought Harvest Court and Naim Indah shares on or before the due date for settlement by passing on these to other clients via married direct business transactions (DBT), which were executed at prices higher than the prevailing market price.
"These married DBTs were used as a tool/device that provided savings/avoided losses to the selling clients in the down trending market of these securities," Bursa said.
By doing so, Oh and his clients were able to prolong the holding period of the shares and also drive up the stock prices which contributed towards artificial inflated or increased volume for the counters.
Bursa said the on-market trading activities undertaken by Oh over a period of several months in the six counters with the execution of opposing buy or sell orders for a group of his clients resulted in their opposing orders being matched against each other.
These cross trades between Oh's clients at the dictated increased or decreased share prices had impacted or influenced the price movement or trading volume of the six counters, Bursa said.
The manipulative trading activities by Oh had the effect of creating a false or misleading appearance of active trading in the securities of the six counters as the trades were not due to natural market forces of supply and demand.
Bursa said it was not acceptable for Oh as a registered person to merely execute orders as instructed by his clients without making proper assessment of the orders and exercising reasonable due care and diligence in undertaking dealing activities so as to avoid manipulative or false dealing activities.
PETALING JAYA: The Kuala Lumpur High Court has dismissed the appeal by Datuk Phillip Wong Chee Kheong for the offence of manipulating Suremax Group Bhd's shares.
Wong was appealing against a two-year jail term and a fine of RM3 million meted out by the Sessions Court upon his conviction under section 84(1) Securities Industry Act 1983.
"This case sets a new benchmark for imprisonment of market manipulators and the SC will continue to seek deterrent sentences to ensure that investors are protected and that the integrity of the market is constantly maintained," SC said in a statement yesterday.
Wong, 53, was earlier convicted by the Sessions Court after a full trial on Jan 7, 2011 for executing transactions in nine accounts that did not involve any change in beneficial ownership of the said shares.
His appeal against this conviction was dismissed by the High Court judge on March 18, 2014.
Yesterday, Wong again appealed against the sentence by Sessions Court in 2011. His Counsel sought a minimum sentence on the grounds that he is now a bankrupt and has an aging mother to care for.
In response, the Securities Commission Malaysia (SC) highlighted that this case involved a full trial where it had called 38 witnesses and had tendered extensive documentary evidence proving Wong's active involvement in the manipulation which took place over a five-month period.
It was also submitted that the Sessions Court Judge did not err when meting out the sentence as she had emphasised that market manipulation was a serious offence undermining investor confidence and the integrity of the securities market.
In affirming the sentence, the High Court Judge found no merit in the appeal and held that the sentence was not manifestly excessive but instead was commensurate with the offence.