Two directors convicted of market manipulation

Saturday January 8, 2011

Two directors convicted of market manipulation
By M. MAGESWARI
mages@thestar.com.my


KUALA LUMPUR: Former Impetus group executive directors Datuk Philip Wong Chee Kheong and Francis Bun Lit Chun were found guilty of stock market manipulation.

Sessions Court judge S.M. Komathy Suppiah ruled yesterday that the prosecution, led by DPP Ros Mawar Rozain, had proven the case against both accused beyond a reasonable doubt.

“I confirmed that the first accused (Wong) is the mastermind of market manipulation,” she said in her verdict.

Komathy held that both accused had created a misleading appearance of active trading of Suremax Group Bhd shares by buying and selling through nine CDS accounts.

In elaborating, Komathy said her ruling was based on a thorough examination of evidence tendered by 38 prosecution witnesses and the two accused who testified under oath.

She set Jan 12 for the hearing of mitigation and sentencing. If convicted, each accused can be fined a minimum of RM1mil and jailed up to 10 years under the Securities Industry Act 1983.

On Feb 12, 2007, Wong, 49, and Bun, 41, had claimed trial to having created a misleading appearance of active trading of Suremax shares.

They were said to have committed the offence by indirectly being concerned in transactions of sale and purchase of Suremax that do not involve any change in the beneficial ownership of the said shares.

The two were accused of committing the offence together with businessman Ivan Ng Chong Yeng at Bursa Malaysia Securities Bhd in Exchange Square, Bukit Kewangan, between Nov 24, 2004 and March 22, 2005.

On Feb 12, 2007, Ng, 45, who was then group chairman of Impetus Consolidated Sdn Bhd, was acquitted of stock market manipulation through 153 CDS accounts.

Sessions Court judge Akhtar Tahir acquitted Ng after the prosecution said they wanted to withdraw both charges against him.

http://thestar.com.my/news/story.asp?file=/2011/1/8/courts/7755242&sec=courts